Will Uber and Careem increase the speed of retirees to compete for on-demand passengers?

Between the retiree seeking additional income, the young person looking to invest spare time, and the investor viewing smart transportation as a growth opportunity, the local expansion of smart mobility is creating a new economic equation. This raises the question: following the entry of global applications into the market, such as Uber and previously Careem, could smart transportation in Kuwait become a source of supplementary income for Kuwaitis? And could citizens’ move to engage in this activity face social barriers?

Initially, statistics from the Civil Affairs Authority up to June 2026 indicate that there are approximately 530,970 “drivers and mobile equipment operators” in the country, of whom only 1,085 are Kuwaitis. These figures reflect the limited participation of citizens in this professional category.

While the emergence of “smart transportation” boosts optimistic expectations that this sector could become an attractive option for citizens, retirees are at the forefront of these expectations regarding competition in the sector, particularly those who own a qualified vehicle and are not averse to the nature of the work. This aligns with the app-based model, which allows drivers to determine their operating hours according to their preference, without being bound by traditional working hours.

According to the Ministry of Interior’s conditions for engaging in app-linked transportation activities, citizens are permitted to provide passenger transport via apps under specific regulations. The most prominent of these include owning a vehicle that is no more than three years old at the start of the activity and no more than seven years old during service, as well as obtaining an annual permit from the General Traffic Department.

In practice, the idea of leveraging transportation apps as a source of additional income is not limited to the Kuwaiti market. This model has become one of the available options for those wishing to continue economic activity after retirement or to supplement their income alongside their pension, especially given fuel prices that are low compared to several countries where smart transportation apps are active.

In terms of financial viability, the return equation differs between a citizen who already owns a vehicle qualified for the activity and one who needs to purchase or finance a new car. In the former case, the vehicle can shift from being an asset that incurs costs for fuel, maintenance, and depreciation to one that generates additional revenue. In the latter case, the cost of entry is higher, factoring in vehicle installments, comprehensive insurance, fuel, maintenance, depreciation, and app commissions.

Nasser Al-Mutairi, a retiree who works in passenger transport to and from the airport, stated that it is not unlikely for Kuwaitis to enter this field, especially those seeking additional activity. He noted that purchasing cars has become easy, whether in cash or on installment, with many offers available. However, he sees competition with companies that own fleets of luxury cars as one of the challenges.

Conversely, Abdullah Al-Dihani, owner of a group of licenses for consumer delivery companies, believes that smart transportation can constitute an investment opportunity for citizens. He explained that he is studying the addition of a new fleet of vehicles to enter the smart transportation sector. He estimates that fares for long-distance trips between the capital and Al-Ahmadi using these apps range between 6 and 8 dinars, while intra-city trips range between 3 and 4.5 dinars.

Potential interest is not limited to retirees. Al-Dihani pointed out that there are young Kuwaitis, university students, and recent graduates seeking additional sources of income. He clarified that delivery work requires effort and on-site presence, but it can provide additional income for active workers.

On the ground, one ride-hailing driver reveals that he starts work at 6 a.m. and continues until 5 p.m., completing between 10 and 15 trips daily within the capital and to the governorates. He notes that families prefer modern, clean vehicles to transport their children to school under a morning subscription and afternoon return arrangement, as well as for daily commuting.

For his part, Abdulaziz Lafi, owner of a general services and delivery company, stated that citizens engaging in passenger delivery is “not easy,” particularly given social considerations and the nature of the trips. However, he added, it represents a new economic activity that can expand the market and create additional income opportunities.

He explained that acceptance of the service will vary depending on the user and the nature of the trip, noting that some women may prefer to be driven by female drivers when available, or choose non-Kuwaiti drivers, based on privacy considerations and usage patterns.

Lafi emphasized that the most important economic aspect is opening the market to new service models and not limiting the delivery and transportation sector to traditional formats. He pointed out that the entry of apps will increase competition, prompting service providers to improve prices and services, while also opening doors for new groups to work and earn additional income.