The Dubai-based ride-hailing app Careem has resumed operations in Muscat, Oman after signing an agreement with a local taxi company, the Middle-east firm said in an official statement on Monday.
Careem had stopped its services in Muscat owing to a government regulation mandating the app-based firm to work with licensed taxis.
Reinstating its operation, Careem will now work in collaboration with Marhaba’s taxi, an Oman-based taxi service provider. Trips booked through Careem will be charged the same fare as regular taxis. Official sources in Careem added further that the firm will handle payment and customer service related issues as well.
With this announcement, Careem plans to expand to other cities in Oman along with other Gulf cities with an intent to compete strongly with its American rival Uber Technologies. Despite facing strong opposition from markets around the world on grounds of killing the local taxi business, the ride-hailing apps are showered with customers and revenue. Now is the time for these apps to introspect how not to lose the customer trust, the way it did for local taxi services.