Hamdan issues new resolution to permit automobile rentals on hourly basis.
Resolution No 49 of 2016 aims to offer other low-cost public transport solutions that satisfy the requirements of the folks in Dubai.
The facility provides commuters the ease of leasing cars for short trips at a cost much lower than the cab fare.
Presently, most companies allow automobile rentals to get at least a single day along with also the new resolution will offer new chances and convenience for residents in addition to tourists.
Beneath the hourly method, the cars may be leased for a maximum of 6 hours every day and may be driven only in Dubai.
As per a salesman of Hertz Rent A Car operator, now a client can hire a car for at least 24 hours and if a client uses it for a single hour or 24 hours he is going to be charged for the whole day.
The other salesperson at Avis Rent A Car also said that they simply rent cars on a daily basis and so far they haven’t obtained any information regarding the law.
The supply of hourly service could be available when the resolution comes into effect.
Al Tayer said that the resolution backs the RTA’s attempts to raise the popularity of public transportation, while enabling achieve integration between different modes of transportation.
According to Al Tayer, the RTA appeared to global best practices that showed renting cars on an hourly basis has higher benefits, such as reducing the number of private vehicle ownership.
He pointed out that under the system, 25 to 71 per cent of people refrained from buying new cars, while 15 to 20 per cent of individuals got rid of their private cars.
In areas where the hourly system is in place, the public transportation ridership also went up from 13 to 54 per cent.
The resolution bans any establishment from providing automobile rental services at the emirate without having try here a permit from RTA’s Licensing Agency.
Additionally, it states that businesses will not be allowed to provide rental services except through cars which have been licensed from the RTA for the same intent. RTA issues annual renewable leasing permits for car rental companies in addition to the cars for hire.
The resolution also enables RTA to authorise any organization or establishment to run car rental business in Dubai through a franchise model.
According to the resolution, cars leased out must be registered and guaranteed yearly. Cars should be leased only to those who possess a driving license recognized by RTA.
In accordance with the resolution, the name of this company must be exhibited on the car, in addition to the maximum number of passengers. The cars must use parking spots and locations which have been specified by the authority. The firms aren’t allowed to display any ads on the car without getting a written pre-approval in the RTA’s licensing section.
The organizations are also obliged to prepare a special system to track the movement and location of leased cars. The cars also have to be fitted with GPS.
They have to also provide any data or reports requested by the licensing section.
The organizations are also needed to combine the RTA’s internet information system for automobile rental services. No provider is allowed to rent a car without registering the transaction in the online car leasing information system.
The resolution is going to be printed in the Official Gazette, and will be click here effective 60 days after the date of its publication.