Citing regulations set by the government, Careem CEO Mudassir Sheikha told The National that he didn't have room to cut prices further.
"We consider ourselves a responsible local company that needs to abide by laws that the different emirates have for a service like ours," Sheikha said. "In Abu Dhabi, Dubai and the others there is some regulatory guidance on pricing and we are committed to meeting and remaining within those."
Regulations in the United Arab Emirates require Uber and Careem to set fares 30 percent higher than those of traditional taxis.
Both Uber and Careem have reportedly been fined in the past for not abiding by these regulations.
Uber's UAE General Manager Chris Free told The National that his company was working within the regulations but said that calculating fares was complicated.
"There is sometimes difficulty in understanding how the pricing system works because we price differently to Careem, and price differently to Dubai taxis," Free said. He explained that factors such as distance, time and speed all figured in the calculations.
"We’ve actually worked very hard with the government to ensure that the prices we’ve put forward are correct. It’s consistent dialogue we are having but as far as we are aware, we’re priced within regulations"
Uber has faced significant controversy around the world as it has quickly expanded globally.
Throughout the world, the company has faced challenges to its unique business model. Traditional taxi services have staged protests against the company and several countries have tried to block it all together.
As for the consumers? Well, lower prices usually win the day ...
