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| Legal experts have warned that individuals using private vehicles to provide unlicensed transport and delivery services in pursuit of additional income may face significant legal and financial consequences, including fines, vehicle impoundment and civil or criminal liability. AI generated image used for illustrative purpose. |
Dubai: Legal professionals have cautioned that individuals who use
personal cars to offer unapproved transport and delivery services in order to
make extra money may face major legal and financial repercussions, including
fines, vehicle detention and civil or criminal charges.
This warning comes as more social media accounts are promoting 'carlift'
services and delivery businesses, with operators listing trips, routes and
contact details on platforms such as Facebook and Instagram.
What the law states
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| Lawyer Ali Yousef Al Awadhi |
Legal expert Ali Yousef Al Awadhi mentioned that while these services might seem practical and affordable, they become unlawful when they are offered for payment without acquiring the necessary permits from the relevant government bodies.
He explained that unlicensed transport services function outside the
supervision, inspection and professional standards that apply to officially
licensed transport operators.
He further warned that standard vehicle insurance policies could fail to
cover accidents involving cars used for unapproved commercial uses.
Al Awadhi said that the rights of passengers might be hard to defend in
the case of an accident or criminal event involving an unlicensed service
provider.
He referenced Article 5 of Dubai Executive Council Resolution No.
6 of 2016, which regulates passenger transport by vehicles, and that it
prohibits carrying passengers for payment in unlicensed vehicles and also
forbids advertising or promoting such services through communication platforms,
electronic media or smart applications.
Significant fines
Under Executive Council Resolution No.
20 of 2021, the penalty for transporting passengers for payment in an
unlicensed vehicle is AED 5,000. The same penalty applies to advertising or
promoting the service, while running the activity without a permit carries a
fine of AED10,000.
Vehicles can also be seized for up to six months, while annual fines are
limited to AED30,000 for individuals and AED50,000 for businesses.
Al Awadhi mentioned that federal traffic regulations impose a fine of
AED3,000, 24 black points and a 30-day vehicle seizing for using a car to
transport passengers without a licence.
He advised the public to use authorized transport services, stating that
lower fares do not make up for the legal and safety dangers involved.
Unlicensed transport services
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| Lawyer Hossam Al Mawafi |
Legal counsel Hossam Al Mawafi stated that having a vehicle and a driving licence does not provide someone with the right to use a private car commercially to make money through passenger transport or delivery services without getting official permissions.
He said many people take part in unlicensed transport services to gain
extra income, but a single traffic accident could put them at financial risk
much greater than any profit made from dozens of trips.
According to Al Mawafi, accidents causing injury, death or property
damage can lead to large compensation claims and legal costs, while liability
can go beyond traffic violations to include civil and criminal consequences.
He warned that the legal risks increase even further if a vehicle is
used to transport forbidden items, smuggle people in breach of residency laws,
or carry dangerous goods without proper authorization.
Al Mawafi emphasized the need to differentiate between sharing a
personal route with family or friends and offering transport services to the
public for payment.
He also cautioned that promoting transport or delivery services on
social media can serve as proof of organized and ongoing commercial activity.
Advertising on social media
Putting up prices, schedules, routes and contact details, he said, can
show that the service is being run professionally and consistently, exposing
the operators and those managing the online accounts to legal responsibilities.
He further advised drivers to avoid transporting sealed packages without
knowing what's inside, noting that problems involving drugs or prohibited
substances could result in criminal investigations to determine the driver's
knowledge and intent.
Passengers are also at risk
Al Mawafi added that risks are not only for drivers. Passengers using unlicensed transport services face uncertainty about insurance coverage, accountability and the identity of the service provider. Similar problems occur for people delivering packages to unknown couriers.
He said that using licensed transport and delivery companies ensures
that service providers are under regulatory control, have their identities
verified and trips are tracked, while offering a clear legal framework in case
of disputes or accidents.
Police authorities have also cautioned against illegal passenger
transport activities, pointing to risks to public safety and security.
Authorities have urged passengers to use licensed and approved transport
services and to support efforts to stop illegal transport activities.
