VAT leaves its mark on Careem and Uber

We all love the ride-hailing apps: Careem and Uber, who doesn’t?

People love the ease and efficiency that comes with calling a ride at a push of a icon on your Smartphone, but avid users of the apps in Dubai must be aware that, with the rise in economic changes in the UAE, their Careem and Uber fares may go up! Particularly with the implementation of the Value Added Tax (VAT), all market services are seeing a fluctuation in prices.

While the public transport and taxi services are exempt from the 5% increase, Uber announced on Thursday that there will be a 1.7% increase on its fares. This increase will only be implemented on the part of the fare that is considered marketplace service. The 1.7% will be implemented across the board to uberX, UberSELECT, UberXL etc. Meanwhile, Careem will see a 1% increase in fares.

Either way, we’re happy fares are not subject entirely to the 5% yet and levy at 1-2%. Though the raise in fares is a bother to us all, the varied out costs will still have us calling an Uber or Careem when we need it!

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