Dubai-based ride hailing app Careem is planning to match government-run taxi prices with a new service next year.
The National reports that fares on the ‘Go’ service start at Dhs6 with a minimum charge of Dhs12. It will be 30 per cent cheaper than a standard Careem ride, which starts at Dhs16.
Careem has been trialling the service in Dubai since April in competition with international rival Uber’s trial of its lower cost UberX.
Under current rules, both companies must charge 30 per cent more than traditional taxis, but the trials suggest some appetite from the Roads and Transport Authority for a cheaper service.
Pricing on Careem Go will increase dynamically depending on demand.
Bassel Al Nahlaoui, general manager of Careem in Dubai, told the publication the cheaper option would target people who cannot afford a traditional ride.
He said it could also pave the way for a car pooling service similar to that Careem has already launched in Jordan.
The company is also working with the regulator to introduce a cheaper service in neighboring Abu Dhabi where Careem’s current minimum fare in a limousine is Dhs40.