Dubai’s Road and Transport Authority has formed a company with the popular ride-hailing app Careem.
The new business, which will start in April next year, will allow users to book one of the authority’s 10,843 taxis through an app.
The name and logo of the company will be made public in the coming months.
Mattar Al Tayer, the authority’s director general, said the partnership would bring together the public and private sectors to create the best possible service for the people of Dubai.
“We have been working on this project for the past year, which is the first of its kind worldwide between a government transport authority and a private entity specialising in the taxi e-hail business,” Mr Al Tayer said.
“The e-hail model has become the most effective tool in matching supply with demand and offers clients a smooth experience when it comes to obtaining taxis.”
He said the company would allow customers to have more options with a single smartphone app rather than different apps for separate companies.
“This will raise the efficiency of taxis in Dubai through the enhancement of accessibility to vehicles via online booking and reduces the expected waiting time for vehicles,” Mr Al Tayer said.
“It will also allow clients to make direct online payments via the app and share the ride with others.”
He said standard RTA taxi prices would apply.
“Entering into this exciting public-private partnership with the RTA will allow us to use that technology to make Dubai’s sophisticated transport infrastructure even more accessible and convenient,” Careem co-founder Mudassir Sheikha said.
“Combining our technology capability with the RTA’s vast industry knowledge will help to build a platform that delivers broader choice, optimum customer experience and reliable, safe transport for everyone.”