UAE-based ride sharing Careem has launched a new affordable service on a trial basis in Dubai, following the launch of a similar service in the emirate by rival Uber.
Careem GO is the company’s “most affordable option yet” with prices staring from Dhs12, a spokesperson said.
The cars during the pilot project will be Toyota Previas.
“We launched Careem GO for a trial period of three months to a select group of Careem customers to test out the service. More customers will be added as the trial goes on,” the spokesperson said.
“The three month pilot of Careem GO is in collaboration with the Dubai’s Roads and Transport Authority (RTA) and provides us with a great opportunity to test the appetite for this new pricing in the market.”
The launch of the service comes as Uber announced the start of its affordable uberX service in Dubai – also on a trial basis.
Uber’s new service, launched in partnership with RTA, is also being rolled out for a trial period of three months. It will start with a limited number of vehicles, and expand to a wider pool of riders and driver-partners, Uber said.
The base fare will begin from Dhs5, adding Dhs1.37 per km and Dhs0.4 per minute.
Until now, both Uber and rival Careem were required to charge fares that are 30 per cent higher than local taxis.
However, both the apps have signed partnership agreements with the RTA in recent months.
Earlier this year, the RTA confirmed that people in Dubai can book public taxis online via Careem.
The move gives Careem users access to 10,000 vehicles operated by six franchised companies.
Careem, which recorded growth of 25-30 per cent per month in 2016, ended the year operating in 48 cities across Middle East, North Africa, Pakistan and Turkey, with more than six million customers and 150,000 drivers.