Want to go somewhere?
Uber?
Uber is the first thing that comes to our mind when it concerns Uber. Uber has changed the way we travel and has taken transportation to the next level making it easy to get a ride. In Dubai, many people use Uber to get around the city. If you want to start an Uber business in Dubai, it’s undoubtedly one of the great ideas since transportation is an integral part of Dubai’s life. However, starting an Uber business in Dubai means more than just having a car. You need to have many cars, manage drivers, and meet the high demand for convenient transportation. Continue reading the blog A Guide to Launching an Uber Business in Dubai and let’s learn how to start an Uber business in Dubai by the experts at Damaar, the best Business Setup Services in Dubai.
How to Start an Uber Business in Dubai
Dubai’s ride-sharing market has a lot of potential for those who are looking to dive into the sector, but it’s important to follow the rules. To drive for Uber in Dubai, you need a special license from the Roads and Transport Authority (RTA). You may also need to work with a company that has the right permits. If you want to start a ride-sharing business in the UAE, becoming an Uber fleet owner is certainly a great option. This way, you can be part of the ride-sharing market without starting your own company from scratch. Here’s how to do it
Become a fleet owner via Uber
With two or more cars that match Uber’s requirements, you can register as a fleet owner via the Uber app. You will manage your drivers and receive a commission on their journeys.
Sign up with Uber.
Download the Uber app and create a business profile. Then go through the signup process. It involves business information and supporting documents etc.
Add your vehicles.
Once signed up, you can add your vehicles (minimum 2) to the Uber fleet dashboard in the app. However, each car must meet Uber’s requirements for age, model, insurance and safety features.
Connect Drivers.
Uber can also help you find drivers but you can also find them yourself. Whatever way you choose, make sure drivers have the correct RTA licenses and meet Uber’s driving requirements.
Start earning.
Once your vehicles and drivers are connected, you will begin to earn a commission on each trip completed by your drivers.
Key Factors to Consider When Establishing Your Uber Fleet
Here are some of the key factors you should consider before starting an Uber fleet in Dubai.
1. Purchasing vs. Leasing Vehicles
Purchasing is also more costly in the initial stages and users are likely to lose their money because of depreciation but it gives long-term possession and sometimes the user may sell the asset and gain more money. Leasing can prevent a large initial expense outlay and may be well-suited to the natural use or depreciation schedules but has set monthly costs and little freedom in ownership. This includes factors like estimated numbers of vehicles in the fleet, the amount of money you are willing to spend, and the type of vehicle leasing that you intend to undertake.
2. Commercial Insurance
Traditional auto insurance will not be enough. You will require ‘ridesharing insurance’ which offers adequate coverage to both passengers, drivers, as well as the car being used. It might be important to ensure them with extra driver’s insurance in the event that they get involved in road accidents while working.
3. Technology Integration
The Uber Fleet version (for Android) allows the management of drivers, vehicles, and performance, as well as the data on earnings and trip statistics.
4. Driver Management
When recruiting drivers seek those who have valid licenses, clean records, and have basic good English skills. Perform background checks on the potential drivers recruited in order to build trust and ensure passenger safety. Ensure that the participants appreciate the Uber policies to be followed, RTA rules and regulations, customer service, and safe driving.
5. Driver Compensation
Providing reasonable wages and incentives should be prioritized in order to attract and maintain professional drivers. It would be appropriate to use a commission-based remuneration model or a mixed model that combines a fixed wage and incentives.
6. Vehicle Maintenance
Maintaining a vehicle on a routine basis is very important in order to reduce the risk of accidents, the dependability of the vehicle and the comfort of the driver. Create a schedule in place for maintaining and think about an affiliation with a reputable repair shop.
Limousine License for Ride-Sharing Business
Running a luxury ride-sharing business in Dubai requires one to acquire a Limousine License from the Roads and Transport Authority (RTA).
Here’s a breakdown of the requirements recommended by our experts at Damaar.
- Obtain business licenses and permits such as registering the company with the Department of Economic Development (DED).
- Receive approval from the RTA, showing the company’s financial capacity, including the minimum of AED 5 million.
- Obtain and guarantee the physical office space that should be compliant with the size requirements set by the RTA.
- The applicant shall own and register not less than 20 vehicles that comply with the limousine standards set out by RTA.
- Make sure all your drivers have the permits that are issued by the RTA – which is not the same as the normal driving license.
Dubai has successfully adapted to the ride-sharing industry, and with planning, you can be on the right side of its growth. Whether you are planning on owning a fleet or being an Uber driver, it is crucial to keep up with the market, ensure excellent services, and continuously seek opportunities for business expansion. By being focused and strategic, it is possible to leverage the growth and potential of the ride-hailing market in Dubai. Still, have doubts regarding starting an Uber business setup in UAE in Dubai? Connect with our experts at Damaar to know more details.
