The transport regulator of Dubai is all inclined to launch a new taxi service with Careem—a ride-hailing service which has given tough competition to Uber in the Middle East.
It was said by the Emirate’s Roads and Transport Authority (RTA) that the deal was the first in the world between a state transport authority and private sector transportation service providing firm, which has a record of having testy relationships with the government in the past.
A spokesperson of Careem said that nearly eleven thousand taxis would be operated by the new firm, which would be fifty-one per cent owned by the RTA and forty-nine per cent by Careem. He also added that the project would later be spread to include buses and other modes of transportation.
RTA said that it has chosen Careem for the joint venture after it received bids from 5 global ride-hailing services. A source close to the deal informed that Uber was among the bidders who remained unsuccessful in acquiring the bid.
In Dubai, both Uber and Careem runs limousine services, which is a city of nearly 3 million people, while taxis are also managed by the RTA.
Under the new firm, which would be commencing its operations from the month of April 2019, customers would be able to book taxis via an application, the technology for which would be provided by Careem.
Careem which considers Daimler—the German carmaker and DiDi Chuxing—the biggest ride-hailing firm of China among its major backers, has given a head-to-head competition to Uber in most major cities of the Middle East.
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