Wheely, a luxury-focused ride-hailing service, is set to launch in Dubai, posing a challenge to the market’s current leader, Uber-owned UBER Careem. The London-based company is targeting affluent clients with a fleet of electric cars.
What Happened: Wheely, a luxury ride-hailing service, is launching in Dubai. The company, founded by Russian-Swiss entrepreneur Anton Chirkunov, will offer rides in Dubai starting Wednesday, with a focus on wealthy clients, reported CNBC.
Wheely’s Dubai launch will see the introduction of BMW 5 Series cars, with plans to add support for BMW’s i5 electric variant in the future. This move is significant, as the i5 is a more affordable option compared to other luxury electric SUVs.
Chirkunov stated that Wheely is targeting Dubai due to its status as a hub for wealthy European business people and digital nomads. This move will bring competition to the ride-hailing market in Dubai, which is currently dominated by Careem.
"We have many North American travellers using Wheely, especially on transfers and flights," Chirkunov said. Wheely's app enables its chauffeur network to check on updates about the status of travelers' flights in real-time.
Why It Matters: The entry of Wheely into the Dubai market comes at a time when Uber is facing challenges. The company is expected to report lower Q4 earnings, and it has been fined by the Dutch Data Protection Authority for privacy violations. On the other hand, Dubai has been making strides in adopting clean energy vehicles, with a taxi operator entering into an exclusive agreement with Tesla for the purchase of Model 3 cars.
Wheely’s move to introduce electric cars in Dubai aligns with the city’s push for sustainable transportation. This could give the company a competitive edge and attract environmentally conscious high-end clientele.
Chirkunov’s decision to target Dubai, a city known for its high net-worth individuals, could prove to be a strategic move. If successful, this expansion could serve as a stepping stone for Wheely’s future international ventures, including a potential move into the U.S. market.
Image Via Shutterstock
Engineered by Benzinga Neuro, Edited by Kaustubh Bagalkote
The GPT-4-based Benzinga Neuro content generation system exploits the extensive Benzinga Ecosystem, including native data, APIs, and more to create comprehensive and timely stories for you. Learn more.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
