Saudi Gazette report

JEDDAH – A taxi-ordering mobile application has attracted $7 million in investment to launch in the Middle East, one of four similar apps making inroads in the region.



The Germany-headquartered Rocket Internet told Al Arabiya that its Easy Taxi application will be launched this month in Saudi Arabia where a new law bans taxi drivers from random passenger pickups at public locations including malls, airports, commercial outlets and hospitals. According to the new law, which came into effect on Tuesday, passengers who require a cab will need to call and make a booking in advance.



The free taxi-ordering mobile application allows users to book taxis and rate drivers, with the driver paying a cut of the fare.



Rocket Internet sees the app being connected to 60,000 to 70,000 cars in Saudi Arabia, and “tens of thousands” in the UAE.



“In the region, it’s easily 100,000 to 150,000 cars that we want to get online,” Eyad Al-Kassar, Rocket Internet’s Managing Director for the Middle East, told Al Arabiya. “It really transforms the logistics in the countries where we launch this service.”



According to the new law, taxi companies will be obliged to meet traffic department standards and maintain a quota of vehicles on their operating license, depending on the size of the city and its population. Taxi drivers found guilty of violating the new rules will be fined SR200-SR400 and face possible license cancellation.



An Automated Vehicle Locater system, which will be placed in each vehicle for navigation purposes, will track and record information such as location, speed and duration of operation. Easy Taxi faces competition from three other car-ordering mobile applications that have launched in the Middle East or are in the pipeline.