The ride-hailing app says there will be an upcoming price structure in response to the financial pressures on drivers.
According to co-founder and chief of product officer, Abdulla Elyas, Careem is hiking up its fares in response to that pressure and increased operating costs including value-added tax.
Elyas responded to an Arabian Business query about the potential of fare increases by noting that “the transportation industry, especially in the electronic marketplace, has undergone several changes in prices over the last two years.”
“Careem has always aimed to set the best possible price between supply and demand, driven by competitive market dynamics,” he added. “These price changes have put a lot of pressure on our 'captains' and their operating cost, so much that we needed to re-evaluate our prices.”
The changes Elyas refers to include the government's implementation of value-added taxes and rising fuel prices.
“Therefore, Careem will announce the final new prices shortly,” he said. “We are hopeful that the increase we are currently assessing will address the financial needs of our [drivers].”
“As tens of thousands of Saudi [drivers] consider ride-hailing companies as their main source of income, we aim to uphold their confidence with a fair price that’s carefully and consistently assessed,” he added.