Dubai’s Roads and Transport Authority (RTA) “confirmed that it has no relation to the fare increase imposed by app-based car booking service company Careem in booking limos via its smart app,” the RTA said.

RTA further explained that limos can be booked through different channels including smart apps of limo companies, online booking companies or by calling 04-2080555 to book a Dubai Taxi limo.

According to earlier media reports, Careem announced it will impose an extra  AED 3 starting on Monday, 23 January 2017, when booking a taxi via its app.

Careem was quoted as saying that the RTA “are now applying a fee on all rides taken with app-based ride-hailing platforms.”

In October last year, RTA signed an agreement with Dubai-based Careem to allow the public to book the RTA’s fleet of about 9,800 taxis via the Careem app. Prior to this, only the 4,700 limousines were accessible via the app.

Meanwhile, another ride-hailing app, California-based Uber, did not make any official announcement about the regulation.

An Uber spokesperson said: “As per new regulations, there will be a fee on the premium product but we haven’t determined what that will be yet.”

“Separately, part of our partnership with RTA, is that we are also studying and piloting a more affordable option. This is still a study and no fee applies as of yet,” Uber added.

RTA and Uber signed an agreement on 11 January 2017 to offer the booking service of RTA taxis and limousines and study “new economic transit solutions,” including carpooling aimed at reducing the number of vehicles on the roads in support of Dubai Vision 2021.