03 April, 2009

New minimum taxi fare of Dh10

"Dubai: The minimum fare for commuting in a taxi in Dubai is now Dh10 with immediate effect, Gulf News has learnt.

The move came after recent complaints from drivers that short trips waste their time and reflect badly on their daily minimum targets. The minimum starting fare, however, has not changed - it is Dh4.

The policy of charging a minimum Dh10 fare took commuters by surprise because it was implemented without any formal announcement by the Dubai Roads and Transport Authority (RTA), which is authorised to approve such decision.

An RTA spokesperson told Gulf News that the final decision was taken on March 31 after consultation with the Dubai Taxi Agency and four other franchise taxi companies in Dubai. The new fare structure was implemented from April 1. However, he failed to give reason why the new policy was not advertised to make commuters aware."


more here

25 comments:

A Blessing in Tragedy said...

I always wondered how the hell you could make money let alone a living starting the meter at 4. 2.7 USD... I remember cabs starting fares were 2.50 in AZ. so this is good news.

As for the no warning thing. "We reserve the right to change/adjust fees without prior notice" is common place in most if not all organizations. Why should cabs be any different?

Keefieboy said...

If I say that's just typical of how Dubai operates, will I get a million people telling me to leave if I don't like it? The RTA takes incompetence and stupidity to a new level.

rosh said...

"As for the no warning thing. "We reserve the right to change/adjust fees without prior notice" is common place in most if not all organizations. Why should cabs be any different?"

ABIT: I'm guessing, the bank where you are employed, notify via written correspondence, changes in rates, bank charges and all that good stuff?

rosh said...

..prior to changes taking effect.

Media Junkie said...

i suppose they didn't bother because people don't really have a choice - not like there's an alternative. buses? sure. if you have 2-3 hours to spare.

wonder if the airport taxis jacked up their starting amount.

Proud Emirati said...

oh Taxi drivers again

They should be panelized again, again and again. I hate everything in their attitude !

Anonymous said...

And this has nothing to do with crisis crunch......fart

The city has turned into disaster since 2006 :(

CG said...

Why not? They need to remain consistant.
They installed Salik without even giving a thought to how taxis would go through it. Now the minimum fare will be Dh.10
My advice is to get out now if you cannot afford it, things are gonna get a whole lot worse.

btw, these thoughts are from a snob who has access to a selection of vehicles and has a driver on hand, for those who don't I can only offer my apologies. Life sucks, and now you are sure of it.

A Blessing in Tragedy said...

ABIT: I'm guessing, the bank where you are employed, notify via written correspondence, changes in rates, bank charges and all that good stuff?

Nope. It states very clearly in the terms and conditions of your 1st account that rates, fees, and charges may be changed at any time and without prior notice.

Does that cause issues with clients? Yes. But it is there is simple terms... in between 6 pages of very small text.

In this case, these are companies, its no different than me selling lets say, photographs of the beach for 10 AED on saturday, then on sunday demanding 15 for the same. Its my business, I want more for it.

Keefieboy said...
If I say that's just typical of how Dubai operates, will I get a million people telling me to leave if I don't like it? The RTA takes incompetence and stupidity to a new level

Actually, your incompetence and lack of logic astonishes me to no ends. If it is so bad here, leave. That is the MOST LOGICAL action. You re illogical by nature it would seem... kind of like a giant squid...

And why wouldnt a million people tell you to leave it you dont like it? As with anything in life, you weigh the good with the bad. I want to buy a new computer for example, I list the pros and cons of my different choices. Obviously, if you are here, the pros of being here outweigh the cons. And the fact that you are here, rather than your "perfect" home, means that here is at least 1% better than wherever you are from.

Johnonymous said...

Another greedy Dubai move!

Seabee said...

An official body putting new rules in place without bothering to inform those affected by it - now that's something unusual in Dubai!

hemlock said...

rosh, banks change their rates all the time - not just in consumer banking, but in corporate/commercial also - without prior notice. the customers scream bloody murder and then shut up because they have no option. very rarely youll come across a customer who will let go, but that's one in 500.

upward price changes happen all the time in restaurants and food chains too (last year al reef bakery, baskin robbins etc came in the news as people complained - nothing happened to revise the prices downwards)...

taxi drivers get a 35% commission on what they make - and a basic salary of DH 1200/mth. to make a take-home of DH 3,500, they need to have cab-fare of at least DH 6,580.

a minimum fare of DH 10 doesnt sound so bad.

B.D. said...

Great Gulf News reporting:

The minimum fare for commuting in a taxi in Dubai is now Dh10 with immediate effect, Gulf News has learnt.

Two sentences down...

The minimum starting fare, however, has not changed - it is Dh4.

So, which is it? Can anyone who has taken a cab since the 1st comment?

I really don't see what the beef is for drivers making short hauls. So, you pick up someone and drop them off one kilometer down the road. So what... you just pick up another person in that vicinity and keep earning. This high minimum fare in my view is unjustified and I am sure many short distance riders will just say FU to the cabbies and figure out other ways to get along.

It will force people to be more resourceful, i.e. car pooling, hitch hiking, hiking on foot, going to work late, etc.

rosh said...

"Nope. It states very clearly in the terms and conditions of your 1st account that rates, fees, and charges may be changed at any time and without prior notice."

ABIT: I'm not contesting that clause, and being in corporate M&A, I deal with bankers so often, I agree. All I'm saying is that, every SINGLE change to personal credit card rates, account charges etc all, I receive a written notice of change taking effect, a month in advance. I think what most folks are debating is the lack of 'heads-up'. For many in the UAE, cabs are an everyday 'necessity'.

"because they have no option"

Hemlock, I don't understand why you'd say that? Of course people have banking options, even in the UAE. And for the record, I've nothing against Dhs 10 minimum fare (especially compared to most major cities across the world). I guess part of the issue being lack of alternative public transport. 'Light years' ago, whilst in high school. friends and I would take cabs from SHJ to DXB for 10 bucks. Realize it's not relevant, just reminiscing *sigh*

A Blessing in Tragedy said...

Rosh, I think hemlock meant they have no option in terms of Taxis, not banks. Which is true. They may be different companies technically, but they are all controlled 1st and finally by one single entity.

And you are correct, i sometimes do get a heads up on rate changes, or fee increases. But usually I do not, and as you would agree, legally anyways, they are not obligated to let me know.

Best business practices? no. but legal.

a question of a question said...

BD said "So, which is it? Can anyone who has taken a cab since the 1st comment?"

BD i presume, the meter works like before, only in cases when the fare is less than AED 10, they charge a min of AED 10.

not many taxi trips in Dubai cost less than AED 10 anyways. but yeah its gonna suck in the summer for that pregnant lady kid who takes a cab to pick her daughter from the bus stop.

ABIT: "Actually, your incompetence and lack of logic astonishes me to no ends. If it is so bad here, leave."

ABIT, actually, Keefie, already left Dubai some time back. So your statement should hv been why do u care? Keefie by the way is a great contributor to this blog.

Nature Strikes Back said...

I took a cab from Dubai to Sharjah 2 days ago and another aspect of the rule change is that there is now a 20Dhs surcharge for Dubai taxis going to Sharjah.

Sharjah taxis have been doing this the other way for a couple of months now. The meter starts at 20Dhs.

B.D. said...

One more thought is that this minimum Dhs 10 will be an added aggravation to metro users and seems counterintuitive when RTA is saying they want to encourage metro use. One of the supposed big selling points for the metro was that there would be convenient links from the stations to nearby destinations too far to walk to.

Well, if we'll need to add 10 Dhs each time for that 1 kilometer run from station to office, home, shop, or whatever, then that's one more reason to stick with your car.

If for example a one-way metro fare is Dhs 5 plus your Dhs 10 cab fare, that could be Dhs 30 each day commuting to work or school.

Anonymous said...

Dubai airport to Sharjah - the starting meter reading is now effectively DH 45/- !!! 25 for the airport taxi and 20 Sharjah surcharge. Driver just touches the word 'Sharjah' on his screen and 20 gets added to the 'extras'. Nifty.

DUBAI JAZZ said...

did you just say that RTA is the same party who operate taxis and regulate their fares at the same time?

Anony Mouse said...

"One more thought is that this minimum Dhs 10 will be an added aggravation to metro users and seems counterintuitive... "

One of the reasons for the introduction of the Metro is to reduce congestion, caused to a large extent by single cars being used by single individuals for transportation. That's where Public Transport comes in. A single individual travelling in a taxi is as good as one going in his own car (as far as congestion is concerned--it merely costs more).

The RTA envisages there will be convenient Public Bus links to and from the Metro stations; using taxis for this purpose, unless shared, would defeat the whole objective.

What the authorities need to look into is the cost and convenience of Public Transport if they want to reduce private car use.

Example: Gold and Diamond Park (Al Barsha/Quoz) to Airport Terminal 2 by Public Bus: Trip began 1:45 pm. Arrival 4:1O pm. (Changed bus once at Bur Dubai.) Total: almost 2 and a half hours.

Another example: Cost of ticket from Dubai to Al Ain by bus (one way) Dh 20. (Uncomfortable 32-seater minibus.)

Cost of petrol for same trip by:

a) Toyota Yaris: Dh 12

b) Corolla: Dh15

c) Mid-size saloon (Camry, Mazda, Accord, Galant): Dh 18 to 20.

Assuming 4 people travel in the car, petrol cost per passenger in the Yaris will be Dh 3, and in the Camry, Dh 5. Even if a single person uses the car, petrol cost is still less than or same as the bus fare. Then factor in the 2 hours it will take you to reach Bur Dubai Bus Station in order to take the bus, and you can easily see why someone who has access to a car will never dream of using public transport.

Currently at least 98% (roughly) of Public Transport users are those poor sods who simply and absolutely have no other choice (that includes myself until I moved heaven and earth to procure a driving licence and a car).

Back to the Dh 10 minimum taxi fare issue, I notice people comparing it to taxi fares elsewhere in the world. Why not a little closer home? ABIT says: "I always wondered how the hell you could make money let alone a living starting the meter at 4. 2.7 USD... I remember cabs starting fares were 2.50 in AZ. so this is good news." In Al Ain, the local metered cabs (not the new company ones)start at Dh 2. It's 50 fils per kilometre thereafter. So a six-kilometre trip will cost you Dh 5. The cabbies not only make a living, they pay a monthly royalty to the "local sponsor" (owner of the number plate).

When comparing taxi fares to those in advanced countries, it makes sense to factor in average incomes as well. In Dubai, for example, the typical salary for a receptionist/secretary is Dh 3000 to Dh 4000. That's Dh 100 to 130 a day. One trip from Deira to Al Quoz, for example, will burn up half a day's salary. Looking at it this way will help you understand the effects of increased taxi fares on the general population, which can then give rise to insightful commentary, which is what I believe most people posting here are attempting to do.

Anonymous said...

I took a taxi this morning, the meter started at DH3 (so no change from pre-anouncement) and it came to DH8.50 - the driver certainly didn't suggest that there was a minimum Dh 10 fare (that said I didn't wait around for change).

I've no objection to the minimum fare - I reckon it's hard enough for cab drivers here to hit their quotas but I do wonder at the logic of (Gulf News) announcing this and suggesting it is being implemented with immediate effect yet drivers aren't informed.
The RTA's website hasn't been updated for the new prices (at least not on the English site)
http://dtc.dubai.ae/en.portal?dtctariff,Article_000031,1,&_nfpb=true&_pageLabel=view

A Blessing in Tragedy said...

The RTA's website hasn't been updated for the new prices (at least not on the English site)

Try the Arabic site.

Anonymous said...

ABIT - as of the day of the comment on the RTA's site not being updated, the Arabic page had also not been updated (I checked just after the posting).

A Blessing in Tragedy said...

See! Now that you have covered all angles, now you may bitch!

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