By Sara Anabtawi
Local cab companies expected to merge within two years to create $266.6m company
An estimated 730 taxi companies in Saudi Arabia plan to form a joint-stock company with a paid up capital of SAR1bn ($266.6m) within two years, it has been reported.
The parent company is likely to attract 645 new investors, who own a total of 15,000 taxis, Al Madina reported citing Saeed Al-Bassami, deputy chairman of the National Committee for Land Transport.
Under the proposed plan, the new company will act as a holding firm for seven offices operating in major cities across the kingdom, said Al-Bassami. Under the new system, the movement, location and direction of all taxis will be monitored using GPS technology, he added.
“The process of merging the taxi firms into major companies will be optional in the beginning. At later stages, the merger will be completed in an organised manner to encompass all the taxis operating in the kingdom,” said Al-Bassami.
The ministries of transport and labour have given their approval for the new system and offered full support to implement it, once all investors have completed the necessary procedures, he said.