Drife, a ride-hailing platform utilizing an innovative auction-based pricing model, has received a license to operate in Dubai. This pioneering approach eliminates the traditional commission process, promising “lower prices for riders and higher incomes for drivers.”
Drife, touted as the UAE’s first decentralized ride-hailing platform, allows users to select their fares from multiple drivers. According to a Khaleej Times report, each ride sets a minimum fare, typically 30% higher than standard rates, in accordance with Roads and Transport Authority (RTA) regulations. Drivers can then choose to offer discounts, maintain standard fares, or request a premium.
Firdosh Sheikh, founder of Drife, explained, “Riders are then presented with various fare options from different drivers, enabling them to make informed decisions based on their preferences such as price, distance, driver proximity, vehicle type, and driver rating.”
Notably, Drife operates on a zero-commission fee structure, ensuring that drivers receive the entire fare paid by riders. This approach allows drivers to increase their earnings while passing on savings to passengers.
Sheikh further emphasized, “Without a profit motive in the ride fare, Drife can offer riders affordable fares while ensuring drivers receive their full earnings. To sustain operations, the platform adopts a subscription-based model, where drivers pay a fee to access the platform. Subsequently, all earnings from rides belong entirely to the drivers, fostering a mutually beneficial ecosystem.”
Starting later this month, Drife will launch with 1,000 cabs, working initially with Dubai’s limousine drivers and eventually hoping to onboard RTA taxis for UAE-wide service.
Prospective drivers can sign up by downloading the Drife application and completing the registration process, including submission of their Emirates ID, driving license, and RTA card. The company conducts independent background checks to ensure safety.
Sheikh also mentioned that initially, drivers enjoy a complimentary 30-day subscription period before selecting daily or monthly subscription plans. Both drivers and riders can earn incentives for active participation within the platform.
Describing their services as “taxi 3.0,” Drife empowers the community, market, and drivers by allowing them to set prices, eliminating commissions, and implementing a subscription fee for drivers. Sheikh believes this direct connection enables more personalized and customized ride-hailing experiences.
Blockchain technology ensures transparency in pricing, and in the future, users will be able to use Drife’s own cryptocurrency, the DRF token, once approved by Dubai’s Virtual Assets Regulatory Authority.
“While DRF tokens will be available for payment, traditional methods such as cash, credit, and debit cards will remain the primary payment options during the initial phase. DRF tokens provide users with additional benefits,” Sheikh explained.
Drife’s expansion efforts are noteworthy, as they previously obtained licenses in various Indian cities in 2023, including Karnataka, and by the end of the same year, boasted more than 350,000 users and 30,000+ drivers.