Dubai’s Roads and Transport Authority (RTA) and ride-hailing app Uber on Monday announced the trial of the uberX service that aims to provide passengers in Dubai with access to affordable travel.
The announcement comes following a partnership agreement between Uber and the RTA in January to study new mobility options to support Dubai Plan 2021.
The pricing of uberX will include a AED5 base fare, with additional costs of AED1.37 per km or AED0.4 per minute.
Until now, Uber, estimated to be valued at $60 billion and its regional rival, Careem, valued at $1 billion, have been barred from offering economical services in Dubai as regulations require their fares to be 30 percent higher than local taxis.
“Uber’s fare is based on a combination of base fare, trip time and distance travelled. Depending on the nature of the trip some fares might be on par or slightly higher than RTA Taxi fares,” an Uber spokesperson said.
The pilot uberX will be rolled out gradually over a trial period of 3 months starting Monday. It starts with a limited number of vehicles, and expanding to a wider pool of riders and driver-partners, a statement said.
uberX will be priced lower than the current UberSELECT, while still offering the same expected levels of safety, reliability, and convenience, the statement added.
After the trial period, the two sides said they will study its results and decide to whether to carry on, develop the service or discontinue it. More info
Source: arabianbusiness.com
