Dubai’s Roads and Transport Authority (RTA) has partnered with ride-hailing app Careem Networks Company (Careem) on an E-Hail Taxi Joint Venture in order to boost the taxi sector.

The new company’s name and logo will be announced in the next few months, while it will cater to customers as of April 2019. The e-hail taxi market for limousines, however, will remain open without any changes.

The announcement was made during a press conference held by Mattar Al Tayer, Director-General and Chairman of the Board of Executive Directors of the RTA, and Mudassir Sheikha, Co-founder and CEO of Careem.

It comes in line with the Smart Dubai initiative by Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to transform the emirate into the world’s smartest city.

“This partnership is the first of its kind worldwide between a government transport authority and a private entity specialised in taxi e-hail business. It sets a model of an excellent partnership in running comprehensive public transport systems shared between the public and private sectors. The e-hail has become the most effective tool of matching the supply with demand, and offering clients a smooth experience in obtaining taxis,” Al Tayer said.

He added that the JV supports Dubai’s Integrated Mobility Platform (S’Hail), which enables customers access to all transit means through a single window (smart app) by integrating RTA’s transit means including the metro, tram, buses, marine transport, and taxis, with the transit means provided by other parties in Dubai, such as limousine companies.

It is also expected to raise the efficiency of taxis through enhanced vehicle accessibility and online booking as well as reduced vehicle waiting time, while customer advantages include the ability to make direct online payments via the app, chart the most suitable journey route, share rides with others and access vehicle and driver details and addition. In addition, it will have an option for a chauffeur service.

Moreover, it will enable the launch of future transit services such as shared journeys, supporting RTA’s efforts in achieving multi-modal integration.

Careem was selected from five e-hail taxi companies operating in the global market following the submission of technical and financial proposals. Careem will cater to the provision of the e-hail technology, and the management of bookings and drivers through its existing app.

The new company will see 10,843 taxis exclusively run for a limited period.