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Dubai flaunts a busy lifestyle, with people hustling to get closer to their dreams. In this fast-paced city, services that bring convenience are in high demand. One such service is ride-sharing. The high-income populace, tax-free environment, and high internet penetration provide fertile ground for the success of transport services businesses. Many entrepreneurs are starting their own Uber business in Dubai to capitalize on the growing market. Not only is this business highly beneficial, but it also offers entrepreneurs unparalleled freedom and flexibility. However, entering this market requires a deep understanding of local regulations, obtaining the necessary licenses, proper vehicle planning, partnering with Uber, staff hiring, and more.
If you are planning to start your Uber business in Dubai, this guide is your go-to resource. We will explore why the Uber business is so profitable here, along with the procedures and legal requirements involved.
Let us understand the Uber business market, which falls under the broader ride-sharing market in the UAE. The ride-sharing market includes various short-term and long-term transportation services facilitated through online platforms or mobile apps. It includes different segments such as ride-hailing, car rentals, car sharing, bike sharing, taxis, and more. The ride sharing market in the United Arab Emirates is experiencing tremendous growth, with projected revenue of USD 3.6 billion in 2024. With an annual growth rate of approximately 4.10%, the market volume is expected to reach a staggering USD 4.5 billion by 2029.
This growth is not surprising. With rapid digitization, more UAE residents are becoming users of such services due to convenience it provides. Whether it is for attending grand events, shopping in malls, exploring the city, business travel, or daily commutes, booking a ride has never been easier.
Dubai is a bustling and car-centric city. For those who do not own a car or prefer not to use public transportation, taxis, ride-hailing services, and car rentals are popular alternatives. Uber, a globally recognized brand, has established a strong presence in Dubai, offering seamless and reliable transportation options. Using Uber is incredibly easy. Riders can book their preferred vehicle through the Uber app by simply entering their pickup and drop-off locations.
Uber provides various ride options for different user preferences and budgets. Some popular Uber ride categories in Dubai include:
Uber acts as an intermediary between commuters (customers) seeking on-demand rides and the company’s driver partners. There are three ways through which you can start earning with Uber in the UAE:
You own your own car, attach it to the Uber platform and also drive the car yourself.
You own one or more cars, attach them to the Uber platform, and manage the drivers, but do not drive the vehicles yourself.
You do not own your own car but are willing to work as a driver through the Uber platform. You can drive a car owned by a non-driving Uber partner.
Starting an Uber business Dubai is highly advantageous and operating as a fleet owner is a popular choice. As an entrepreneur, you can partner with Uber and operate your business by managing a fleet of vehicles, hiring drivers, and using Uber’s app to provide seamless transportation services to Dubai’s diverse clientele.
Dubai’s strategic location, world-class infrastructure, business-friendly environment, and tax benefits make it an ideal place to launch such a venture. Additionally, the growing demand for ride-hailing services, driven by a diverse customer base that includes locals, expats, and a high influx of tourists, makes this business an appealing and profitable choice.
Here are the general requirements for starting an Uber business in Dubai:
First things first, you will need the proper licenses and permits from the government to run your Uber business in Dubai legally. It includes a business license form Department of Economic Department (DED). Also, you will need to get the necessary approvals and permits for the drivers and vehicles from the Roads and Transport Authority (RTA).
All the drivers of the Uber business Dubai must hold an RTA card (permit) and must be between the ages of 21 and 65. They also need to attend the necessary training programs and pass tests approved by the RTA. A valid driver’s license and a clean driving history are also mandatory for all drivers. They will require a medical fitness assessment from an authorized institution and a clear criminal record, which will involve undergoing background checks. The business must comply with UAE labour laws regarding employment, salaries, and benefits for drivers. Additionally, businesses must also provide driver insurance.
The vehicles used for Uber services must meet specific requirements and specifications. Obtaining vehicle insurance is a legal mandate in Dubai, ensuring coverage in case of any mishaps. The RTA also requires vehicles to have up-to-date registration along with updated insurance paperwork. Additionally, there are strict rules regarding safety features, passenger accommodation space, and the condition and maintenance of vehicles. Regular inspections and frequent maintenance checks must be conducted to ensure compliance and safety standards.
Being an expert in the industry, Dubiz Business Setup can help you meet all the requirements diligently.
Here is how to start Uber business in Dubai:
For your business, decide if you want to operate individually or set up a company. LLC company formation in Dubai is a very popular business structure choice in UAE.
To do business in Dubai, you need to obtain a trade license from the DED. This will include:
The transport sector is regulated by the RTA. You will need to register your business with the RTA. For doing so, you must submit your business license, Emirates ID, passport, and other required documents along with the registration form.
Next comes organizing the fleet. You can decide to either buy or lease vehicles. Remember, this is one of the most important aspects for your Uber business in Dubai. Based on your business model, choose vehicles like luxury cars or standard ones. The vehicles must meet both Uber and RTA standards. You must also get the vehicles inspected and registered with the RTA.
RTA issues permit known as driver cards, and each driver should have this professional license to drive a car in the city. Also, when hiring drivers ensure candidates meet the standards set by the RTA and Uber. You can post job advertisements on job portals and social media to attract applicants. You can also connect with drivers through Uber or hire on your own.
Finally, after completing the above steps, you must partner with Uber to start offering ride-hailing and ride-sharing services through its platform. To do so:
Once verified, you can begin operating your Uber business in Dubai.
A great way to enter a high-paying profession is to drive for Uber. Most people in the UAE are eligible to drive with Uber. Here is the step-by-step procedure for registering as an Uber driver in Dubai, either as an individual or as part of a business or fleet:
Sign up online: Visit the website and sign up using your email.
The vehicle must meet Uber’s standards. If you do not have your own vehicle or do not want to buy one, you can join a fleet. Uber connects you with licensed fleet owners who have vehicles available for you to drive. If you are part of a fleet, the fleet owner is responsible for handling the vehicle registration.
After successfully completing the above steps, you must activate your account and start driving.
For a successful Uber business in Dubai, follow these tips:
Your vehicles are your most important assets in the Uber business in Dubai. First and foremost, you will have to keep them up to RTA and Uber standards. But what is even more important is their ongoing condition. After all, rides must be comfortable, and all features must function properly. Never step back from ensuring your fleet is in the best condition.
Your drivers will be the face of your Uber services. Keeping them happy means keeping your customers happy. Make sure they receive compensation that reflects their work. Invest in their insurance and provide support to help them understand the Uber app better. Satisfied drivers become loyal, which will help you grow your business.
You can take your Uber business operations to the next level by employing the right technology. For example, use fleet management systems or software to track fleets in real-time, monitor fuel consumption, and assess driver performance. This data can help you take the right actions, improving service quality and reducing costs.
Regular training for your drivers is essential to improve their skills and the customer service they provide. Not only technical skills but social skills are also crucial in services like Uber, as drivers interact with commuters daily.
One of the most important things to keep in mind is staying up to date with RTA regulations. Ensure you renew all licensing and permits on time, keep vehicle insurance renewals updated, and meet Uber’s requirements.
If you are looking for a flexible, high-earning business formation in Dubai, then the Uber business could be one of the best options in the shared mobility sector. The industry is already thriving, and you can enjoy a piece of its success too. Whether it is about becoming a driver under Uber or running a fleet-owner Uber business, there are huge opportunities. Remember, starting an Uber business in Dubai requires proper adherence to local regulations and RTA-specified requirements.
Dubiz Business Setup can help you with all. From company registration in UAE to handling marketing, we are your one-stop solution. Handover your business setup in Dubai to us and focus on your growth.
Call Dubiz now on +971563695485. You can whatsapp us on the same number. Or mail your inquiries to: info@dubiz.co.
The money Uber drivers make depends on when, where, and how often they drive. According to Glassdoor, it is around AED 35,800* per month.
An Uber car owner in Dubai makes around AED 5,000* to AED 10,000* per month. However, this depends on many factors, such as how many vehicles they are operating, how their drivers are performing, and how many trips are being completed. Revenue will be based on each trip, but the total depends on the performance of their business, customer service, ratings, etc.
An RTA card is a special permit issued by the Roads and Transport Authority (RTA) in Dubai that allows Uber drivers to legally operate and drive in the city. Applicants must have a valid driver’s license, medical fitness certificate, a clear criminal background, a valid UAE residency visa/Emirates ID and meet other conditions.
You can register your car on Uber by first creating a profile. Then, you can add your vehicle. You will need to submit essential documents such as the Vehicle Identification Number (VIN), registration number, insurance papers, etc.
Yes, Uber is an extremely profitable business in Dubai given the rising demand for ride sharing and hailing services in the city.
