Three rent-a-car companies in Dubai have been shut down for violating car rental rules, according to a report in the Arabic daily newspaper Al Bayan.
The Roads and Transport Authority (RTA) said the firms had recently starting giving cars on rent on hourly basis via a smartphone app, which is against the rules in Dubai.
The smartphone app allowed customers to see where the nearest car for rent is parked. The customer would then fill up and sign an application form on his smart phone and enter his credit card number.
The customer would then be guided to the nearest car which would be opened by the app. The customer would use the vehicle for the number of hours rented and would then park it anywhere in the emirate.
Nasser Hamad Bu Shehab, acting executive director of strategy and corporate governance of RTA in Dubai, said the law currently allows cars to be rented out only on daily basis or for 24 hours.
He pointed out specialised consultancies have been conducting studies for some time on smart car leasing and rental hours for the RTA.
Bu Shehab said new rules on hourly car rental is expected soon.