Uber Increases Prices in UAE

Press release

Published January 11th, 2018 - 08:27 GMT

Ride hailing app Uber has announced price increases for its service in the UAE following the introduction of VAT. (File photo)

Ride hailing app Uber has announced price increases for its service in the UAE following the introduction of value added tax.

In a blog post, the company said the 5 per cent tax did not apply to transport but was applicable to marketplace services like those it provides through the app.

To compensate for this the company said it would be increasing fares on all of its ride options, including uberX, UberSELECT, UberBLACK, UberXL, UberONE and UberVIP, by 1.7 per cent.

“The change in fare prices allows drivers to earn a little more to make up for the additional tax that affects their earnings,” the company said.

Uber fares are already 30 per cent more expensive than traditional taxis in the UAE due to the country’s transport laws.

The company and its rival Careem have been trialling cheaper ride options in partnership with Dubai’s Roads and Transport Authority to access a wider customer base.

Careem said it would roll out its cheaper Go service in Dubai later this year. - Gulf Business

Background Information

Uber

Uber’s mission is to bring reliable transportation to everywhere, for everyone. We started in 2010 to solve a simple problem: how do you get a ride at the touch of a button? Six years and more than two billion trips later, we’ve started tackling an even greater challenge: reducing congestion and pollution in our cities by getting more people into fewer cars.

In the Middle East, Uber is already in Dubai, Cairo, Alexandria, Amman, Casablanca, Riyadh, Jeddah, Eastern Province, Makkah, Madinah, Hail, Qassim, Kharj, Yanbu, Ehsa, Taif, Manama, Beirut, Doha, Istanbul, Karachi, Lahore, Hyderabad, Islamabad, Rawalpindi, Faisalabad, and Gujranwala with plans for expansion across the region To request a ride, users must download the free application for Android, iPhone, Windows Phone, Blackberry 7, or sign up at uber.com/app.