The Roads and Transport Authority of Dubai has announced a partnership with ride-hailing app Careem Networks Company. The joint venture is for an e-Hail Taxi service in a bid to boost the taxi sector.

The new company’s name and logo will be announced in the early months of 2019. The JV will start catering to customers from April onwards. The e-hail taxi market for limousines will remain open without any changes.

Careem Transportation Network Company

Careem was shortlisted from five global firms operating in the e-hailing business.

Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of the RTA as well as Mudassir Sheikha, co-founder and CEO of Careem made the announcement during a press conference. The business aligns perfectly with the Smart Dubai initiative by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai.

Mattar Al Tayer said: “This partnership is the first of its kind worldwide between a government transport authority and a private entity specialised in taxi e-hail business. It sets a model of an excellent partnership in running comprehensive public transport systems shared between the public and private sectors. The e-hail has become the most effective tool of matching the supply with demand, and offering clients a smooth experience in obtaining taxis.”

He added that the joint venture supports Dubai’s Integrated Mobility Platform (S’Hail). This feature enables customers to access all transit means through a single app. This includes RTA’s own transit means as well as facilities provided by other parties in Dubai, such as limousine companies.

RTA Dubai App

The joint venture with Careem will allow RTA to enhance its scale of operations and services across the UAE.

The efficiency of taxis also stands to increase through enhanced vehicle accessibility and online booking as well as reduced vehicle waiting time. Customer advantages include the ability to make direct payments via the app, chart the most suitable route of the journey, share rides with others and access vehicle and driver details. There will also be an option for a chauffeur service.

The joint venture will also enable the launch of future transit services such as shared journeys, supporting RTA’s multi-modal integration goals.

Careem was finalized from five e-hail taxi firms that operate globally following the submission of technical and financial proposals. The new joint venture will see 10,843 taxis exclusively run for a limited period.