Women in Saudi give a boost to taxi apps

The women’s ban on driving in Saudi Arabia has led to the launching of numerous car-booking apps in the past 18 months. According to Wall Street Journal, the app companies’ believe that almost 80% of their customers in the country are women. This comes as no surprise as the transport system is often non-existent in the country.

The report also states that an amount of more than $1 billion has been invested into the taxi-app space around the world in venture capital. This has increased due to heavy competition in many countries such as the US. The app companies in Europe continue face opposition from authorities and taxi drivers.

Careem, a Dubai based company that launched last year currently operates in four cities across the country. It has also been followed in the premium space by San Francisco’s Uber. The founder of Careem, Mudassir Sheikha, told Wall Street Journal, “We have Saudi women using us three to four times a day, every day… We are just scratching the surface.” The company currently has 50,000 regular users and the figure is growing at 50% a month.

Even though it is no substitute to women driving, the launching of these apps has been quite helpful for the women who until now had very limited means to travel. However, even this little luxury might be short lived for the women.

The head of the land transport committee at Riyadh Chamber of Commerce and Industry, Saud Al Nafaiei, condemns the government for allowing such apps into Saudi Arabia and believes they are unlicensed. He has presented a proposal to the governor of Riyadh to develop the taxi sector. The use of Taxis by women however, is still frowned upon by the people of Saudi Arabia.

ORIGINAL SOURCE: The Wall Street Journal

http://online.wsj.com/articles/ban-on-women-drivers-in-saudi-arabia-gives-taxi-apps-a-boost-1413456923