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Tech startups shape future of UAE mobility sector

By Divsha Bhat
mobility startups UAE Cafu
On-demand fuel delivery company Cafu also offers mobile car washing and battery, tyre and oil change services via its app
  • $5.9m raised in December
  • AI playing pivotal role
  • Services from baggage to fuel

Technological advances and evolving consumer demands are bringing massive growth to the UAE’s mobility and logistics startup sectors.

Logistics startups in the Middle East and Africa raised $5.9 million in funding in December, according to venture capital firm Wamda.

This ranked the sector third behind “cleantech” (technology designed to reduce negative environmental impacts) and fintech (technology used in banking and financial services).

Here are five mobility and logistics tech startups operating in the UAE:

BaggageTAXI

This Dubai baggage-hailing service provider operates a team of registered drivers who will collect and store users’ baggage before delivering it to the airport kiosk or any given hotel or address.

BaggageTAXI provides local same-day services and international delivery. It was recently accepted into Dubai Internet City’s incubator, In5 Tech.

Cafu

Cafu is an on-demand fuel delivery company that has become a “mobile car services” operator. It charges the same price per litre as normal petrol stations but adds an extra fee of 18 dirhams (nearly $5) for a single use and 45 dirhams per month, with unlimited refuels, for a monthly subscription package.

Since its inception in 2018 the Dubai startup has expanded its services to mobile car washing and battery, tyre and oil change services via its app. Last year it also started buying and selling pre-owned vehicles in the UAE online and it has partnered with a Canadian company to develop and test mobile EV chargers, now being piloted in Montreal. 

One Moto Technologies

Headquartered in the UK but with offices in countries including the UAE, Bahrain, Jordan and Iraq, this electric vehicle manufacturer offers a fleet of electric vehicles for delivery fleets and personal use. Its fleet includes e-bikes, delivery and grocery vans, motorcycles and scooters. 

Founded in 2018, One Moto Technologies secured $40 million in lease financing earlier this year and has set sights on 50,000 electric vehicles in the UAE by 2025.

Patang

Dubai-based Patang lets users track their cargo’s journey by ocean, air and road transport in real time via a cloud-based application. The company (officially called Transform Technologies DWC) claims to be creating fine-tuned, agile supply chains “built on intelligent, data-driven decisions”.

Peec Mobility

This Dubai startup focuses on repurposing retired petrol vehicles into electric ones. Promising a 30 percent reduction in costs, a 27 percent reduction in carbon compared to manufacturing new vehicles and an 80 percent decrease in manufacturing time for repurposed vehicles compared to new electric vehicles, Peec Mobility promotes cost-effective and environmentally friendly transitions. 

The firm, founded in 2022, recently partnered with Sharjah environmental consulting services company Bee’ah to revolutionise local electric vehicle production by repurposing petrol vehicles.

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