UAE shines as global incubator for startups in smart mobility solutions

The United Arab Emirates has established a pioneering, modern, and integrated transport ecosystem, supported by world-class infrastructure and an extensive network of roads, bridges, metro, and tram systems.

This has been further enhanced by the introduction of individual smart mobility solutions, including electric scooters and bicycles, which complement the country’s modern transport landscape and enable community members to reach their destinations in a fast and cost-effective manner.

These solutions are considered efficient, easy-to-use, and environmentally friendly options for short daily commutes related to work and leisure. They connect public transport bus stops with commercial, retail, service, residential, and leisure centers. Electric bikes and scooters can be operated through smart applications provided by the operating companies, with each vehicle equipped with its own QR code.

In line with these objectives, the UAE has opened the door to startups to invest in this modern transport ecosystem by preparing the necessary infrastructure and establishing regulations and requirements that ensure safe usage.

Companies have since competed to offer their services in this field, benefiting from the UAE’s fertile and ideal business environment, which embraces local and international startups and encourages the growth of innovative investments and entrepreneurship. The World’s Coolest Winter campaign, under the slogan “Our Winter Is Entrepreneurial,” highlights innovative tourism projects and the strong support extended to startups, which enhances their performance, contributes to their success, strengthens their local presence, and supports their regional and global expansion.

Smart mobility solutions, including scooters and bicycles, have seen widespread adoption across various segments of society. This has prompted local and global startups operating in the sector to expand their services and coverage across different areas of the country to meet public demand. Prominent examples include Careem, Uber, Tier, Lime, FENIX, Skurrt, Arnab, and many other startups.

These mobility options are characterised by their ease of access and use through service applications downloaded onto smartphones. Each application allows users to locate the nearest scooter, scan the QR code to begin their ride, and enjoy a safe journey by following safety guidelines and traffic regulations.

Many of these companies have achieved local and global success after launching in the UAE or entering the UAE market as a gateway for regional expansion.

One of the most notable examples is Careem, a startup founded in Dubai in 2012, specialising in delivery services through its website and mobile applications. Within a few years, Careem achieved successive successes, culminating in Uber’s official acquisition of the company in 2019 for US$3.1 billion. Careem stands as one of the Middle East’s most prominent startup success stories and a testament to Dubai’s status as a global hub for innovation and entrepreneurship, supported by an ideal investment environment that has opened wide opportunities for innovators from around the world.

Another success story is the UAE-based startup Arnab, the first micro-mobility company in the UAE to integrate multimodal transport systems, targeting the UAE and the Middle East and North Africa region. Its operations align with smart city visions aimed at building a prosperous environment and achieving enhanced connectivity by providing environmentally friendly and affordable transport solutions that are easy and safe to use.

Arnab Mobility operates as an on-demand shared platform for light electric vehicles, including e-scooters and e-bikes. This unique digital and physical platform brings together innovative global mobility solutions in the Mena region to connect people and places in smarter and more sustainable ways, enabling customers to reach their destinations using scooters and make seamless payments via their smartphones.

Meanwhile, global company FENIX launched its shared electric bike rental service in the UAE in late 2021. Electric bikes have since joined FENIX’s growing portfolio of mobility offerings, which also includes shared e-scooters, alongside the region’s first private e-scooter subscription service, My FENIX.

Tier, for its part, is among the world’s pioneering companies in using swappable battery technology, placing it at the forefront of sustainable companies. This innovation eliminates the need to transport scooters to warehouses daily for charging, as batteries can instead be replaced on-site by a local team.

Abu Dhabi began issuing licenses for app-based scooter rental operations in 2019, alongside intensified public awareness campaigns promoting the safe use of bicycles and electric scooters. Users have been encouraged to adhere to safety requirements and signage instructions while using these modes of transport.

By 2023, the number of designated areas approved for riding and renting scooters in Abu Dhabi reached eight, including Al Reem Island, Masdar City, Yas Island, the Corniche, Khalifa City, and areas within Abu Dhabi Island along Hamdan Street, Falah Street, Sheikhbout Street, and Al Raha Beach. Abu Dhabi also encourages the use of bicycles and plans to expand its cycling network to exceed 3,000 kilometres by 2026.

WAM