UAE-based ride sharing Careem has launched an affordable service on a trial basis in Dubai soon after its rival Uber unveiled a similar service in the emirate.
The firm launched Careem GO for a trial period of three months to a select group of customers to test the service, a company spokesperson said, adding that more customers will be added as the trial goes on.
Careem GO is the company’s most affordable option yet with prices starting from Dhs12, the spokesperson said.
The three-month pilot of Careem GO is in collaboration with Dubai’s Roads and Transport Authority (RTA) and provides an opportunity to test the appetite for this new pricing in the market, the firm said.
It will use Toyota Previas (a multi-purpose vehicle) for the pilot project.
Until now, Careem and rival Uber have been barred from offering economical services in Dubai as rules require their fares to be 30% higher than local taxis.
However, both the apps have signed partnership pacts with RTA in recent months.
Earlier this year, the RTA confirmed that people in Dubai could book public taxis online via Careem.
This week, Uber launched its affordable travel offering uberX on a trial basis in Dubai.
The development came after Uber too signed a pact with the RTA in January to study mobility options to support Dubai Plan 2021.
The pricing of uberX will include a Dhs5 base fare, with additional costs of Dhs1.37 per km or Dhs0.4 per minute.
Uber’s fare is based on a combination of base fare, trip time and distance traveled, a Uber spokesperson said, adding that depending on the nature of the trip, some fares might be on par or slightly higher than RTA taxi fares.
This followed the rollout of uberX in cities in the region such as Riyadh, Cairo, and Beirut.