How to set up an E-Scooter Rental Company in UAE?
Why the boom in E-Scooters?
Cars are often not the quickest way to travel in dense urban areas. An electric scooter is a motorised version of the two-wheel kick scooter, it is powered by batteries and are under the same category as a motorcycle because they both have two wheels with an engine; however, they are not as regulated as motorcycles and in some areas can be used on pavements, walkways as well as minor roads. They are a quick and easy way to get short distances from A to B and can be rented and left within certain zone to allow recharge and reuse, they do not need specific docking stations, as with most bicycle hire systems.
They are becoming increasingly popular in many cities throughout the world, including the United Arab Emirates, the UAE has started to witness something of a boom in their usage, particularly in Abu Dhabi.
What are the benefit of using an E-Scooter?
- Freedom and Speed - Get from Point A to Point B fast
- No sweat and easy to use - for short business travel
- Convenience – eScooter can be rented/picked up from any point A and left at the drop off area
- Fuel savings – user does not have to purchase a scooter, and the electric motor saves on fuel usage
- Ecology and environmentally friendly – no fuel consumed, zero emissions and cuts down on car usage in urban areas
Recently, electric kick scooters (e-Scooters) have grown in popularity with the introduction of ride-share companies that use apps, allowing users to rent the scooters by the minute. From 2002 Electric kick scooters have surpassed the gas-powered alternatives.
Typically an e-Scooter has two small hard wheels, usually made of aluminium. Portable owned e- Scooters often have a foldable chassis, whilst rental scooters do not fold. The range of an e-Scooter typically varies from 5 to 50 km (3 to 31 miles), with a maximum speed is around 30 km/h (19 mph).
The different emirates in the UAE have their own transport authority’s and rules and requirements to set up an e-Scooter Rental Licence. These are discussed below:
Setting up an e-Scooter Rental Licence in Abu Dhabi
As of July 2019, Rental companies were given the green light to provide e-Scooters for rent to residents and tourists in Abu Dhabi. To ensure safety, the Integrated Transport Centre (ITC) in Abu Dhabi has announced that these scooters should travel no faster than 15-20km/h whilst the users should use only paths designated for pedestrians and cyclists.
The initial pilot phase of the E-scooter project will allow rentals in Corniche Street and Khalifa Bin Zayed Street. After six months to a year, the Integrated Transport Centre (ITC) will analyse the public demand for the service in order to determine how the expansion should follow. This is enabling rental firms to soon link public bus stations to main destinations like shopping malls and residential areas.
A rental scooter company in Abu Dhabi will need to have a Mainland company and can be a Sole Establishment or a Limited Liability (LLC) Structure in the mainland UAE. A Local UAE Partner / Shareholder will be required.
An NOC from the Abu Dhabi Police will be required in order for the Trade Licence to be issued. Once the Trade Licence, Tawtheeq and the initial approval has been confirmed, then the Licence is ready to be issued. Once registered, rental companies will make use of smart applications on phones (Apple, Android and Web Platforms) & scannable QR Codes to allow users to register swiftly and rent the vehicles. Each Vehicle is GPS tagged and must be left in a designated area.
Please speak to PRO Partner Group to understand the formation requirements and how you can ensure the correct set up to allow the relevant approvals and activity and to ensure that you are adhering to UAE laws and regulations. PRO Partner Group can also assist in acting as secure local partner and providing PRO services for your staff visas, trade licensing requirements and corporate governance.
Setting up an e-Scooter Rental Licence in Dubai
There was an announcement in July 2019 that the transport regulator - the Roads Dubai’s Roads and Transport Authority (RTA) had banned electric scooter rental companies on grounds of safety. The California-headquartered Qwikly Mobility had to discontinue services after only operating for 10 weeks. Talks are ongoing with RTA and it is believed that further regulations will soon be put into place, and that services in Dubai will be reinstated.
When Qwikly Mobility was actively renting out scooters, users had to pay Dh3 to unlock a scooter and 50 fils per minute to ride. This payment model is similar across other platforms in Abu Dhabi, although prices may increase due to regulatory requirements.
Steps on how to register for a E-scooter licence
How do you obtain a E-Scooter Rental License?
E-scooter rental companies work by having a GPS tracker installed so that they can locate the E-Scooters at all times. This technology is regulated under federal Telecoms Law. According to the Telecoms Law to be able to sell, use or rent this equipment, the company will have to obtain Type Approved.
Type Approval is achieved under the UAE Telecommunications Regulatory authority’s (‘TRA’) Telecommunications Equipment Type Approval Regime Regulations
- Type Approval is achieved through conformity with technical specifications published by the TRA and by registration of the telecommunications equipment concerned with the TRA;
- the applicant for Type Approval (dealers, importers or manufacturers of the RTTE) must first be registered with the TRA themselves; and
- the application for Type Approval must be made on the official form
The TRA have stated that for a GPS Tracking Systems it would require the registration of the GPS tracking system supplier, as well as the registration and Type Approval of the GPS tracking system.
The Type Approval process will form part of the standard Company Formation process with the Department of Economic Development, together with the standard steps and requirements.
How can PRO Partner Group Assist?
PRO Partner Group can assist with obtaining and e-Scooter Rental Licence and certification, TRA Type Approval as well as ITC and Ministry of Transport approval, for further information, please complete the contact form below or call us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi.