Dubai opens up limousine and taxi services to private sector

Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and Chairman of Dubai Executive Council, has approved the Executive Council Resolution No. (6) for the year 2016, regulating carpooling in Dubai, as part of the Roads and Transport Authority’s (RTA) plan to develop transportation sector in the Emirate.

The Resolution also aims to regulate taxi and limousine transportation and combat illegal carpooling.

The Resolution identifies the responsibilities of RTA’s Public Transport Agency, which include processing requests related to issuing permits as per the Resolution, specifying the number of cars. It is allowed to operate, sign franchise contract to provide the services of passenger transportation via taxi vehicles or limousines, and assess efficiency in terms of safety and quality of the service.

The Resolution authorises RTA to prepare and adopt the technical specifications and safety measurements required to operate taxis and limousines; in addition to specify the requirements necessary for allowing handicap people to utilize these vehicles easily.

The Resolution also allows RTA to control the adherence of these establishments to the provisions of RTA’s permits and franchise contracts.

The RTA will also be required to establish a database related to taxi and limousine transportation services and prepare specialised studies related to the development and improvement of the service in the Emirate of Dubai; in addition to organise training courses aimed at qualifying taxi drivers and chauffeurs, as well as issuing licenses to operate in Dubai.

The new Resolution authorises RTA to grant any establishment the right to provide taxi and limousine services in the Emirate of Dubai or between the different emirates, as per the franchise contract, which clearly identify the rights and obligations of each parties including the service fee of the franchise and the payment method in coordination with the Dubai Department of Finance (DoF).

The Resolution also highlights the administrative penalties related to the illegal practice of transporting passengers by taxi and limousine, where the Resolution prohibits exercising the activity before obtaining the required authorisation from RTA as well as passing the training sessions approved by RTA.

The Resolution prohibits transporting passengers against fare in any vehicle without obtaining the required licensing from RTA, whether this service is provided through phone calls, online, smart apps or any other way. The Resolution prohibits advertising taxi services for unlicensed vehicles in any way or transporting passengers in a taxi without operating the taximeter.

The Resolution also prohibits operating a taxi without installing a taximeter, manipulate the taximeter, operating luxury cars as taxies or operating any vehicle as a taxi without satisfying RTA’s terms, conditions and requirements, most particular safety requirements.

This Resolution annuls Regulation No (1) of 2007 on Practicing the Activity of Passenger Transportation by Taxis in the Emirate of Dubai and further annuls any other legislation that contradict or challenges its articles. This Resolution id to be published in the Official Gazette, and considered valid from the date of publication.

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