New taxi fare structure for Abu Dhabi

Abu Dhabi: An Abu Dhabi taxi and hire car agency yesterday announced a new fare structure that will come into effect from the third quarter of 2007 for all standard taxis operating in the emirate.

Khalid Saleh Al Rashedi, General Manager of the Taxi and Hire Car Regulation Centre (formerly Taxi Transport Regulation Centre), while announcing the launch of a compensation scheme for phased out taxi licence holders, said the flag-fall starting fare will be Dh2.60 for a standard taxi, with each additional kilometre charged at 65 fils.

The flag-fall starting fare for the current standard taxis is Dh2 and 50 fils for each additional kilometre.

The new taxis of Abu Dhabi will have the cheapest fares offered by private companies. Two existing private firms in Abu Dhabi have flag-fall starting fares from Dh5 to Dh6 with from 50fils to almost a dirham per every additional kilometre.

He announced the new fare structure after signing an agreement with the National Bank of Abu Dhabi (NBAD) for managing the compensation scheme for the national owners of taxis that will be phased out under a new system.

Al Rashedi said the phasing out of the current taxis, numbering more than 8,000, will begin in the third quarter of this year, and within three years fleets of 7,100 modern taxis operated by private companies would have replaced all existing taxis in the emirate.

The new taxi system is being introduced under an Emiri Decree issued last year by President His Highness Shaikh Khalifa Bin Zayed Al Nahyan in his capacity as the Ruler of Abu Dhabi.

The Centre yesterday launched its compensation fund in partnership with NBAD at an agreement signing ceremony. The agreement was signed between Al Rashedi and Stuart Henrickson, NBAD Head of Corporate Finance.

Beneficiary certificate

Al Rashedi said taxi owners will receive a certificate entitling them to a monthly income of Dh1,000 after they hand-in their licences at the Department of Vehicles Registration and Licensing during the various phase-out periods. The certificate, known as a beneficiary certificate, will be valid for 25 years.

"As we switch to a modern, safe and cost-effective taxi system, taxi owners will benefit from fair, regular and customer-friendly monthly payments without the hassle of running a taxi. Together with NBAD, we have structured a state-of-the-art compensation fund that ensures long-term security, flexibility and peace of mind for current taxi owners," he said.

To a question, he said those owners holding several taxi permits will be entitled for two certificates only. He said: "As per the traffic laws, UAE nationals are allowed only two taxi licences, but in many cases some owners have inherited more than two. As per the law, they will be entitled to two certificates only," he said.

NEW SYSTEM
Starting fare will be Dh2.60

- The flag-fall starting fare for the standard taxis will be Dh2.60 and 65 fils per kilometre

- The phasing out of more than 8,000 current taxis will begin in the third quarter of this year

- Within three years all taxis will be phased out and replaced with 7,100 modern vehicles operated by private companies

- National taxi licence holders will receive a certificate with an estimated value of Dh100,000 with a life of 25 years

- Taxi owners with several licences will receive a maximum of two certificates

- Certificate holders can draw a monthly payment of Dh1,000 for 25 years

- They can trade their certificates

The charges in fractions of fils is not at all practical. It will cause loss to either party or may spark quarrels between drivers and passengers.
Sidhik
Abu Dhabi,UAE

The authorities should have made the fare structure in multiples of 50 fils. According to the new structure, one will have to carry enough change (10 and 5 fils) to travel. Most probably the customer will end up losing money because the driver does not have change.
Judy
Abu Dhabi,UAE

Abu Dhabi is the capital and it is starting so many new projects, yet there is no public bus. We do not need taxis, we need a train or at least a good bus system.
Imolina
Abu Dhabi,UAE

How exactly will the 15 fils be paid or the 35 fils returned when we use the new fare is in place? There will most probably be arguments over the change.
Rayner
Abu-Dhabi,UAE

I think so it is time we adjust to the change. An increase of approximately a dirham for a normal ride is not much compared to international taxi fares!
Ayman
London,UK