Uber will not return to Abu Dhabi until pricing rules are revised
Uber will not get back on the road in Abu Dhabi until the cost of operating in the capital is overhauled, the ride-hailing company said.
Uber suspended its services in the capital in August 2016, saying at the time that the move was temporary.
But it has still not resumed operations and says a return is not on the agenda unless it is able to cut fare charges for customers.
Careem, which stopped operations at the same time, has returned to the roads, and last month launched an “economy car” service. Careem’s economy service is available for hire for a minimum charge of Dh19 – compared with the base charge of Dh12 for a standard taxi.
At the Careem economy cars launch, Mohammed Al Qamzi, general manager of the Abu Dhabi Integrated Transport Centre, said it was also in talks with Uber over a return to the emirate.
Uber’s Middle East chief said the company was “very keen” to get back on the road in Abu Dhabi, but said it was difficult to run an affordable service in the city.
“We have been in conversations ever since we paused our operations over there. The reality is that we are very keen in launching Abu Dhabi again. It is a very interesting market,” said Anthony El Khoury.
“We were there and we know for a fact that there is a lot of potential. The reality is that we still feel that the current regulation, specifically on pricing, makes it a bit difficult for us to have an affordable and convenient service in Abu Dhabi.”
He said current regulations dictate that limo-style companies such as Uber must charge 30 per cent more than standard taxis.
This, he said, made it difficult for the company to run an affordable and convenient service.
Mr El Khoury said Uber would continue to talk to the Government about its return but it was difficult to say if and when it would resume operations in Abu Dhabi.
“Today’s regulation is prohibitive,” he said. “This is why we are going to continue the discussions. Now depending on how the discussions go we might enter the market, but we really want to stand hard on this philosophy.” Mr El Khoury said.
Business is doing well in Dubai, which is one of the company’s largest markets in the region.
“You have a lot of tourists coming in, a lot of people who know Uber and who use Uber,” Mr El Khoury said.
The company has expanded its services there, launching UberX, running vehicles that are 30 per cent cheaper than its standard cars.
“UberX is the product of a lot of discussion with the RTA of Dubai. This is what we want to push towards,” Mr El Khoury said.