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Mon 27 Feb 2017 10:18 AM

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Uber applies surcharge to all bookings

Fee is part of new regulations imposed by Dubai’s Roads and Transport Authority

Uber applies surcharge to all bookings

Transportation app Uber has added an AED3 ($0.82) surcharge to all of its bookings as part of new regulations imposed by Dubai’s Roads and Transport Authority (RTA) on ride-hailing services. The amount will be passed directly to the RTA.

Uber made the announcement to its users via an email.

It said: “In line with our commitment to deliver you the best customer service, an increase in operating costs means an additional AED3 booking fee will apply to all rides starting February 24th, 2017 (Friday).”

Uber told Arabian Business this year it was working with the RTA on a joint study to devise a more “economic” pricing model to adopt. It said it had accepted the RTA’s new fee on the condition that it would be able to work out how much to charge.

“Fees are a necessary part of the new regulations, and the exact pricing will be determined during the study – our goal is to make the Uber product accessible to everyone from a both a rider and driver standpoint,” a spokesperson said in January.

However, there are no signs a new price model has been introduced. Uber has been contacted for further comment, but had yet to respond at the time of publication.

On January 23, the same surcharge was applied to Dubai-based transportation app Careem, which labelled it an ‘RTA fee.’

“For Careem to continue to serve you here in Dubai, it’s important for us to comply with RTA regulations. By taking this step, you can be sure our service will remain uninterrupted and continue to improve,” it said, adding the fee is applicable only on completed trips, not cancellations.

The fee will not apply to RTA taxis booked through the Careem app – a service that is scheduled to launch shortly following a deal between the two parties also done in January.

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