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Wed 28 Sep 2016 12:41 PM

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Dubai approves law to allow pay-by-the-hour car rentals

New regulations permit pay-by-the-hour car hire, franchised rental businesses

Dubai approves law to allow pay-by-the-hour car rentals
U-Drive, a Dubai-based concept, launched a pay-as-you-go concept in car rental that means drivers simply pay per minute.

Rental cars will now be available by the hour in Dubai, following a resolution from Crown Prince of Dubai and Chairman of Dubai Executive Council, Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum.

The resolution aims to provide “alternative low-cost public transportation solutions that meet the needs of people in Dubai,” according to state news agency WAM.

It sets out procedures for car rentals in the emirate, facilitating both pay-by-the-hour car rentals and franchised car rental businesses provided all parties hold the valid licence.

Under the regulations, hourly car rental firms must obtain a licence from Dubai’s Road and Transport Authority (RTA), and individuals renting a car should hold a valid driving licence recognised by the RTA.

The rented car should meet all specifications stipulated in the new regulations, and the vehicle rental period should not exceed six hours a day in Dubai. Car rental firms are required to have all their cars licensed by the RTA, WAM added.

Meanwhile, franchise contracts should clearly specify the rights and obligations of each party, the way in which the service is delivered, the franchise fee and mode of payment, according to the resolution.

It also prohibits the display of advertisements on the outside of the car without prior written approval from the RTA. Cars rented out should be registered and insured annually, and firms are required to keep records tracking the movement and location of their cars.

Fees and penalties are to be imposed on anyone who violates the provisions.

The new regulations are to be published in the UAE’s Official Gazette, and take effect 60 days from the publication date.

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