Careem is to make its cheaper services available in Abu Dhabi after receiving regulatory approval to charge rates that will make the cost of journeys using its ride sharing platform in the capital closer to what it is in Dubai.
The decision concludes what has been a five -year period of uncertainty over the legal status of both Careem and its rival Uber in the emirate.
They both launched in 2013 but suspended their services in 2016 amid concerns from transport authorities over their pricing structures being in violation of regulations for private hire car, or limousine, companies.
While Uber currently does not operate in Abu Dhabi, Careem re-entered the market but without offering its lowest priced car service.
“We have just received word from the regulator that we expect to be able to introduce a new, lower pricing structure for Careem services in Abu Dhabi within a matter of weeks,” said Bassel Al Nahlaoui, the company's managing director for the gulf region.
______________
Read more:
[ Uber and Careem to increase prices in the UAE ]
[ Careem blazes a trail for Middle East tech start-ups ]
[ Dubai’s transport regulator sets sights on Uber and Careem ]
______________
All fares for private hire car operators in Abu Dhabi must be approved in advance by TransAd but according to the rules, private operators in Abu Dhabi must charge a minimum of Dh40 for the first 10 kilometres, after which a rate of at least Dh4 per kilometre should apply. Careem’s app shows the rates for its limo service in Abu Dhabi currently meet these requirements.
However, soon Careem’s offering in Abu Dhabi will include its economy, business and minivan services in line with what customers can get in Dubai and with a similar pricing structure, Mr Al Nahlaoui said. Careem could not provide exact pricing for these services in Abu Dhabi at this time but it is understood that fares will be about 30 per cent more expensive than taxis. The minimum fare for a journey in a standard taxi in Abu Dhabi is Dh12 with the charge per kilometre Dh1.82.
In Dubai, its economy service has a minimum fare of Dh16 and a per kilometre charge of Dh2.24. Its business service has a Dh20 minimum and a rate of Dh2.6 per kilometre. The rules in Dubai stipulate that fares must be 30 per cent above taxi rates.
Now operating in more than 90 cities, Careem became the Middle East’s first tech “unicorn” in 2016, when a funding round led by Japan’s Ratuken and Saudi Telecom gave the company a value of $1 billion.
Mr Al Nahlaoui said that the ability to offer more of its services in Abu Dhabi is “a fantastic opportunity for us to fully embrace our potential in the capital after five years of operating here”.
According to a 2017 study on ride sharing by economics experts Robert Hahn and Robert Metcalfe, platforms like Careem and Uber have the potential to benefit consumers and increase their welfare in the markets in which they operate. These platforms can encourage higher utilisation of vehicles which may lower emissions per individual and fewer drivers searching for parking can also reduce congestion. According to Strategy&, GCC consumers spent $10.7 billion in 2016 on sharing economy platforms, including transportation.
More on Quran memorisation:
The specs: 2019 Mercedes-Benz GLE
Price, base / as tested Dh274,000 (estimate)
Engine 3.0-litre inline six-cylinder
Gearbox Nine-speed automatic
Power 245hp @ 4,200rpm
Torque 500Nm @ 1,600rpm
Fuel economy, combined 6.4L / 100km
Company profile
Date started: January 2022
Founders: Omar Abu Innab, Silvia Eldawi, Walid Shihabi
Based: Dubai
Sector: PropTech / investment
Employees: 40
Stage: Seed
Investors: Multiple
Company profile
Date started: January, 2014
Founders: Mike Dawson, Varuna Singh, and Benita Rowe
Based: Dubai
Sector: Education technology
Size: Five employees
Investment: $100,000 from the ExpoLive Innovation Grant programme in 2018 and an initial $30,000 pre-seed investment from the Turn8 Accelerator in 2014. Most of the projects are government funded.
Partners/incubators: Turn8 Accelerator; In5 Innovation Centre; Expo Live Innovation Impact Grant Programme; Dubai Future Accelerators; FHI 360; VSO and Consult and Coach for a Cause (C3)
Company Profile
Company name: NutriCal
Started: 2019
Founder: Soniya Ashar
Based: Dubai
Industry: Food Technology
Initial investment: Self-funded undisclosed amount
Future plan: Looking to raise fresh capital and expand in Saudi Arabia
Total Clients: Over 50
COMPANY PROFILE
Name: SmartCrowd
Started: 2018
Founder: Siddiq Farid and Musfique Ahmed
Based: Dubai
Sector: FinTech / PropTech
Initial investment: $650,000
Current number of staff: 35
Investment stage: Series A
Investors: Various institutional investors and notable angel investors (500 MENA, Shurooq, Mada, Seedstar, Tricap)
TWISTERS
Director:+Lee+Isaac+Chung
Starring:+Glen+Powell,+Daisy+Edgar-Jones,+Anthony+Ramos
Rating:+2.5/5
MATCH INFO
Uefa Champions League semi-final, second leg result:
Ajax 2-3 Tottenham
Tottenham advance on away goals rule after tie ends 3-3 on aggregate
Final: June 1, Madrid
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
The Specs
Engine: 1.6-litre 4-cylinder petrol
Power: 118hp
Torque: 149Nm
Transmission: Six-speed automatic
Price: From Dh61,500
On sale: Now
COMPANY PROFILE
Name: Qureos
Based: UAE
Launch year: 2021
Number of employees: 33
Sector: Software and technology
Funding: $3 million
The specs
Engine: 2.0-litre 4-cyl turbo
Power: 190hp at 5,600rpm
Torque: 320Nm at 1,500-4,000rpm
Transmission: 7-speed dual-clutch auto
Fuel consumption: 10.9L/100km
Price: From Dh119,900
On sale: Now
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 3/5
The biog
Name: Dhabia Khalifa AlQubaisi
Age: 23
How she spends spare time: Playing with cats at the clinic and feeding them
Inspiration: My father. He’s a hard working man who has been through a lot to provide us with everything we need
Favourite book: Attitude, emotions and the psychology of cats by Dr Nicholes Dodman
Favourit film: 101 Dalmatians - it remind me of my childhood and began my love of dogs
Word of advice: By being patient, good things will come and by staying positive you’ll have the will to continue to love what you're doing
COMPANY PROFILE
Company name: Almouneer
Started: 2017
Founders: Dr Noha Khater and Rania Kadry
Based: Egypt
Number of staff: 120
Investment: Bootstrapped, with support from Insead and Egyptian government, seed round of
$3.6 million led by Global Ventures
The BaaS ecosystem
The BaaS value chain consists of four key players:
Consumers: End-users of the financial product delivered
Distributors: Also known as embedders, these are the firms that embed baking services directly into their existing customer journeys
Enablers: Usually Big Tech or FinTech companies that help embed financial services into third-party platforms
Providers: Financial institutions holding a banking licence and offering regulated products
COMPANY PROFILE
Name: Kinetic 7
Started: 2018
Founder: Rick Parish
Based: Abu Dhabi, UAE
Industry: Clean cooking
Funding: $10 million
Investors: Self-funded
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5