London-style black cabs set for Dubai as Bolt launches competitor to Careem

Dubai Taxi Company has joined forces with Estonian ride-hailing company Bolt to launch a new e-mobility platform that aims to rival Careem in Dubai.

Mansoor Alfalasi, Dubai Taxi Company chief executive, said on Thursday that the new service would offer passengers more competitive pricing as a result of adding more options in the market. So far 12,000 drivers have signed up to support the platform, which will provide e-hailing services.

Much like Careem offers private hire cars, as well as a taxi service through Hala Taxi, Bolt will do the same, with a more traditional taxi service expected in the new year. On Thursday, The National found prices for Bolt and Careem were comparable for a journey from Dubai Marina to Downtown.

Luxury option

A high-end London black cab-style limousine service, with electric and hybrid vehicles, is also expected by the end of the year as a VVIP concept. "We will test it out with our customers and, if we see good reactions from the market, maybe we can grow it," Mr Alfalasi told The National.

Bolt's international services already cover more than 600 cities across at least 50 countries in five continents. Valued at €7.4 billion ($7.7 billion) at its latest fundraising in 2022, the e-mobility provider offers a variety of solutions, including e-hailing, food and grocery deliveries, scooter and e-bike rental, short-term car rental and limousine services.

The partnership was initially agreed to in October and followed by the launch of the Bolt platform in the UAE on Eid Al Etihad.

The Dubai listed taxi company is the most prominent provider of taxis in he emirate, with a 47 per cent market share. Teaming up with Bolt, it says, will enable the taxi company to unlock a greater share of the Dh6 billion ($1.63 billion) market opportunity presented by Dubai’s taxi and e-hailing sector – and could position Bolt as the largest e-hailing provider in the UAE.

The contract between Dubai Taxi Company and Bolt covers the UAE, but Mr Alfalasi said eh was open to further growth. To facilitate the technology partnership, a new subsidiary under the taxi company was created called Connected, which is 100 per cent owned by the company. Mr Alfalasi said it was like technology partner.

He emphasised that the agreement was inline with Roads and Transport Authority directives to transition 80 per cent of taxi trips to e-booking in the coming years.

For Bolt, the partnership marks the next stage of its regional expansion, after the launch of its business in Saudi Arabia in 2017 and its launch in Egypt this year. Speaking at the signing ceremony in October, Markus Villig, funder and chief executive of Bolt, said the long-term strategic partnership with Dubai Taxi Company "will create a new shared mobility platform in Dubai, reducing the need to use a private car which will have a positive impact on the emirate and the people living here".