Dubai residents using taxi apps might notice their fares looking a little different this week. The Roads and Transport Authority (RTA) has introduced a new dynamic pricing model for app-booked taxis, which affects how booking fees and minimum fares are calculated.
If you often use apps like Careem (Hala), Bolt, S’hail, or the DTC Smart App, here’s what to expect from the updated Dubai taxi fares system and how it could change your next ride.
What’s changing for app users
Under the revised model, the minimum fare for app-booked rides has increased to AED 13, up from AED 12. Booking fees are no longer flat. Instead, they now depend on the time of day and demand.
- Off-peak hours: booking fee starts at AED 4.00
- Peak hours: booking fee can reach AED 7.50
Peak hours run from 8 am–10 am and 4 pm–8 pm (Monday–Thursday), while off-peak periods sit between 10 am–4 pm and 8 pm–10 pm. Night hours are 10 pm–6 am. On Fridays, the evening peak extends until midnight.
This means the time you book directly affects what you’ll pay. A short trip in rush hour will now cost slightly more than one in the middle of the day.
Street-hail fares stay the same
For those who prefer waving down a taxi on the street, nothing changes. The RTA has confirmed that the standard street-hail fare remains in place.
- Flag-fall: AED 5.00 (daytime), AED 5.50 (night)
- Per-kilometre rate: AED 2.14 – AED 2.26, depending on fuel price index
- Minimum fare: AED 12
These rates continue to offer a consistent option for riders who don’t rely on apps or prefer the traditional way of catching a cab.
Airport and event trips
Trips starting from Dubai International Airport still carry a higher starting fare — AED 25 — due to airport surcharges. Per-kilometre rates remain the same.
Similarly, taxis operating from major venues such as Expo City Dubai, Global Village, and the Dubai World Trade Centre may have slightly higher starting fares during large events, reflecting traffic and demand conditions.
How dynamic pricing works
Dynamic pricing links taxi fares to real-time demand. When the city is busier — say, morning commutes or after-work rush hours — fares adjust slightly upward to ensure more drivers are available.
In quieter periods, booking fees drop, encouraging riders to travel at less congested times. It’s a balance that aims to keep rides available while avoiding long wait times or driver shortages.
This approach has been tested in many global cities and now makes Dubai’s taxi system more flexible and transparent for both drivers and passengers.
How does this affect your daily rides?
If you rely on taxi apps daily, the difference won’t be dramatic, but it’s noticeable. Morning and evening rides might cost a few dirhams more, while midday bookings could be cheaper.
For example, a short 5 km ride booked at 9 am through an app might now cost AED 20 instead of AED 18, while the same trip booked at 2 pm might remain around AED 17.
It’s a smarter, data-driven adjustment designed to spread demand more evenly across the day.
Tips to save on your next ride
A few practical ways to manage your travel costs under the new fare system:
- Travel off-peak when possible — between 10 am–4 pm is ideal.
- Compare fares between app-booked and street-hail taxis, especially for shorter trips.
- Check the fare estimate on the app before confirming your ride.
- Avoid unnecessary waiting time, as taxis charge AED 0.50 per minute when stationary.
- Plan your route to limit Salik gates; each adds AED 4 to your total.
A little planning can make a noticeable difference, especially for frequent commuters.
The bigger transport picture
This fare adjustment is part of Dubai’s ongoing goal to create a smarter, more connected city. By using demand data to set fares, the RTA aims to ensure fair pricing, better driver distribution, and reliable service availability across the city.
It also brings Dubai’s taxi network closer to international standards, where app-based rides use real-time pricing models to balance supply and demand.
Dubai’s new app-based taxi fare system introduces small changes that add up to a smarter experience for both drivers and passengers. Street-hail taxis remain steady for those who prefer consistency, while app-booked rides now offer more transparency and flexibility.
So next time you open a taxi app, check the booking fee and the time slot before confirming, your wallet will thank you.
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