The UAE is showing the world how to successfully incubate smart mobility solutions
Encouraging a startup culture improves their performance, contributes to their success, strengthens their local presence, and supports their regional and global expansion, and one area that has become prominent is travel.
The UAE has developed an innovative, modern, and integrated transportation system, supported by world-class infrastructure and an extensive network of roads, bridges, metros, and tram systems, as well as contributions from businesses.
Infrastructure has also been improved with the introduction of individual smart mobility solutions, including electric scooters and bicycles.
These transportation solutions not only allow members of the public to reach their destinations more economically and quickly, but are also efficient, easy to use, and environmentally friendly. They connect public transportation with commercial, retail, services, residential, and recreational facilities.
The UAE has encouraged startups to invest in this transportation ecosystem by preparing the necessary infrastructure and establishing rules and requirements that ensure safe use. Entrepreneurs are competing to offer their services in this sector, benefiting from a favorable business environment that includes local and international startups.
Smart Mobility solutions, including motorcycles and bicycles, have seen widespread adoption across various segments of society with companies such as Careem, Uber, Tier, Lime, FENIX, Skurt, Arnab, and several other startups benefiting from the ecosystem.
UAE travel success stories
Many of these companies have achieved domestic and global success after launching in the UAE or entering the UAE market as a gateway to regional expansion.
One of the most notable examples is Careem, a startup founded in Dubai in 2012, which specializes in delivery services through a website and mobile applications. It is one of the Middle East’s early success stories and a testament to Dubai’s status as a global hub for innovation and entrepreneurship.
Within a few years, Careem has become a huge success story, culminating in Uber officially acquiring the company in 2019 for $3.1 billion.
Another success story is UAE-based startup Arnab, the first micro-mobility company to integrate multimodal transport systems. Targeting the UAE and the MENA region, its operations align with smart city visions of improved connectivity by providing sustainable and affordable transportation solutions.
Arnab Mobility operates as a shared platform for the most sought-after light electric vehicles, including e-scooters and e-bikes. It allows customers to reach their destinations using scooters and make seamless payments through their smartphones.
Global company FENIX launched its shared electric bike rental service in the UAE in late 2021. Its growing portfolio of mobility offerings now includes shared e-scooters, alongside the first private e-scooter service, My FENIX.
Tier is among the world’s leading companies in the use of replaceable battery technology. This innovation eliminates the need to transport motorcycles to warehouses every day for charging, as the batteries can instead be replaced by a local team on site.
E-scooters ride on urban transport
Abu Dhabi began issuing licenses for app-based scooter rental operations in 2019, and strengthened public awareness campaigns promoting the safe use of electric bicycles and scooters. By 2023, the number of designated areas authorized to ride and rent scooters in the capital will reach eight, including Al Reem Island, Masdar City, Yas Island, Corniche, Khalifa City, and areas on Abu Dhabi Island along Hamdan Street, Falah Street, Sheikhbout Street, and Al Raha Beach.
In Dubai, the electric scooter project was launched on a pilot basis in 2020, followed by the official operation of the first phase in 2022 in 10 areas of the emirate and designated bicycle tracks. Dubai’s Roads and Transport Authority (RTA) has also launched an online platform on its website, allowing the public to obtain free permits to use electric scooters in designated areas and roads.
RTA statistics showed that the number of shared e-scooter trips doubled in 2022 to over a million trips, compared to almost 500,000 trips in 2021. The authority has also provided high-quality scooter tracks built to the highest safety standards, connecting the main attractions with the most popular destinations.
Earlier this year, in a first move, the RTA launched a smart inspection system to check the condition of bicycle and e-scooter tracks, using the latest smart and advanced technology.
Bicycles have become one of the best means of transportation for individuals in Dubai.
