Upcoming fare hikes by ride-hailing app Careem in Saudi Arabia are a response to financial pressures on their drivers and increased operating costs including value-added tax (VAT), according to co-founder and chief product officer Abdulla Elyas.
Responding to an Arabian Business query about the potential fare increases, Elyas noted that “the transportation industry, especially in the electronic marketplace, has undergone several changes in prices over the last two years.”
“Careem has always aimed to set the best possible price between supply and demand, driven by competitive market dynamics,” he added. “These price changes have put a lot of pressure on our ‘captains’ and their operating cost, so much that we needed to re-evaluate our prices.”
Elyas noted that the changes he refers to include the Saudi government’s implementation of VAT and rising fuel prices.
“Therefore, Careem will announce the final new prices shortly,” he said. “We are hopeful that the increase we are currently assessing will address the financial needs of our captains.”
By Bernd Debusmann Jr arabianbusiness.com