End of the road for Abu Dhabi's golden taxis



ABU DHABI // Gold-and-white taxis will disappear from the streets of Abu Dhabi next year.

Fewer than 800 of the original 8,000 remain in the emirate, and the drivers' permits will expire on December 31.

Each cab is sponsored by an Emirati owner. Drivers pay the sponsor a monthly fee and keep the rest of their earnings.

TransAD started phasing out the taxis in 2007 and introduced franchise taxi companies. The authority will compensate licence owners, paying Dh1,000 to each for 25 years. Drivers can sell their licence to TransAD for Dh100,000 from next year.

TransAD will not offer any compensation to the drivers.

"But we are offering the drivers to join the franchises," said Mohammed Al Hosani, TransAD director of franchise and licensing.

Drivers who do not read Arabic or English will not be eligible to join, he said.

The old taxis are loved and hated by passengers for their personalised interiors and bargained fares. Drivers choose their own hours, their own lodgings and, often, their customers.

Passengers are urged to book taxis in advance to reduce traffic congestion and carbon emissions, said Mr Al Hosani. Currently, only 2 per cent of taxi rides are pre-booked.

Abu Dhabi has a fleet of 7,147 taxis that can be booked by calling 600 535353.

COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
 
 
 
 
 
 
 
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FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.


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