Starting on New Year’s Eve, the minimum cost for a taxi ride at select places in Dubai will increase from Dh12 to Dh20 during large events, the Roads and Transport Authority (RTA) said on Friday.
“Dynamic fares” will be charged for both normal metered taxis and Hala taxi services, in addition to the modification in flag-down or flagfall rate, which is the initial fee paid at the beginning of a taxi ride.
The reason it’s termed “dynamic” is that the fare varies according on demand. This typically occurs during rush hour, when there is a strong demand for transportation and more people on the road. In order to cover the costs of the gasoline (or electricity, in the case of electric vehicles) and time required to transport people, more passengers result in greater traffic, and fares increase accordingly.
But the fare rise is only in place temporarily. In the day, when there is less demand, fares are less expensive.
The dynamic pricing mechanism is typically only available for taxis reserved through ride-hailing applications that have a pre-planned route. In these cases, the passenger will be informed in advance of any increases in fare. It’s possible that some people are unaware of the dynamic price structure when they hail a cab on the street. Additionally, since it is usually more difficult to find a cab on the road during rush hour, they are recommended to utilize the app.
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