Startups Careem-UAE-Sheikha-Olsson

Published on November 18th, 2015 | by Bhavishya Kanjhan

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Careem introduces surcharge pricing in UAE

Careem has introduced ‘dynamic surcharge’ – a pricing model that increases the cost of your ride in times of high demand. This is similar to the ‘surge’ model by Uber that the car-sharing company received flak for.

However the companies, in this case Careem, will tell you that this becomes necessary to maintain supply during times of high demand. The higher rate / charge incentivises more drivers to become available, thus increasing supply, which then in turn reduces the charge. So the surcharge is often temporary.

The good news about Careem’s pricing is that the surcharge will be limited to 2x the original price, unlike that of Uber which can go many times over.

The dynamic surcharge goes live in Dubai on the 18th of November so keep an eye out for that on your next ride.

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About the Author

is Founder of TechView.me and a retail professional. He's an Android fanboy who is trialling his first iPhone - the 6! Follow him on Twitter @bhavishya



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