Business | Shipping
New Abu Dhabi taxis raise concerns
The government of Abu Dhabi will replace its traditional taxis with a new, more expensive, system later this year, without providing an alternative for the middle and lower middle classes.
- By Ahmed A. Elewa, Staff Reporter
- Published: 00:00 January 27, 2007
- According to economists, introducing an efficient public transport system to Abu Dhabi will help curb housing and soaring inflation problems.
- Image Credit: Illustration: Dwynn Ronald V. Trazo/Gulf News
Abu Dhabi: The government of Abu Dhabi will replace its traditional taxis with a new, more expensive, system later this year, without providing an alternative for the middle and lower middle classes.
By the end of March, the newly-established Taxi Transport Regulation Centre in the capital will announce five to seven winners bidding for providing taxi services, to be launched by the third quarter this year, while the existing 8,000 taxis will be phased out in three years.
No official plans have been announced as alternatives to cheap transport.
The cost-effective traditional system in the emirate has been in place for about 25 years, a method that, for many, presented a compensation for the absence of a reliable public transport system.
According to economists, introducing an efficient public transport system to Abu Dhabi will help curb housing and soaring inflation problems.
"The effect of the cost of housing on inflation, which we estimated to be around 38 per cent in Abu Dhabi, has proved to be even higher," said Steve Brice, regional head of research at Standard Chartered Bank.
The introduction of an efficient public transport system will eventually alleviate some of the pressure on the demand for property, and it would further equalise the differential between rental costs in the city and remote areas decline, Brice said.
Many economists emphasise that there is an economic cost for traffic congestions, though it is difficult to measure.
"Some of the costs due to the absence of efficient public transport are not measurable, as traffic congestion consumes workers' time, and results in stress which negatively affects productivity," said Eckart Woertz, the economist at the Gulf Research Centre.
Many middle and lower middle class taxi commuters in Abu Dhabi expressed their worries from increasing transport costs due to the elimination of the existing system.
"We live according to a set budget for transport, and if the cost exceeds Dh1,000 per month, it would be better to buy a second-hand car," Mohammad A. Al Syed, a resident, told Gulf News.
Such a choice, if indeed was made by the middle and lower middle class living in Abu Dhabi, can pose a real threat to the near-perfect traffic system in place.
Khalid Saleh Al Rashedi, general manager of the Taxi Transport regulation Centre, addressed the concerns of existing taxi owners and assured them of proper compensation.
He also said qualified taxi drivers will be recruited in the new system, while the public was promised that the increase in cost due to the new system would be minimal.
Your comments
I lived in Abu Dhabi for five years and moved to Dubai last year - one of the main attractions of Abu Dhabi city was its affordable taxi system. While welcoming the overhaul of the taxi system for the sake of passenger safety and comfort, an unmatched cost increase cannot be justified and there must be a cheap public transport system prior to any such move to cater for the demand of middle and lower income groups.
Shemil
Dubai,UAE
Please keep lower class people in mind.
Anil
Abu Dhabi,UAE
Abu Dhabi taxis are among the cheapest in the world - even if the fares increase by 1 fil they will be "more expensive". Let's not panic before we know the real facts.
Rafaela
Abu Dhabi/Dubai,UAE
Well, in the absence of an efficient transport system, such an act will simply add to the grievances of the people, especially, the middle class and the lower middle class.
Sarfaraz
Dubai,UAE
I would like to comment on having qualified drivers and this should be a must. Because, everyday, I meet stupid drivers ie. they don't accept payment by coins! They always want to be paid by paper bills even if the cost is only Dhs 2.50. Everyday, they always complain about payment by coins. What is the matter with them? The important thing is I'm paying.
Aby
Abu Dhabi,UAE
Dubai has mass transport cheap public buses plying to various parts of the city. Abu Dhabi should also introduce buses/mini buses to run on busy streets and give an option for residents needy of cheaper fares.
Subramanian
Abu Dhabi,UAE
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