Tesla Inc TSLA and a taxi company from Dubai Arabia Taxi LLC signed an exclusive deal to purchase 269 Model 3 cars.

What happened: The taxi company – a unit of Business Group Holdings– will add 269 Tesla Model 3 vehicles to its taxi fleet in Dubai in April 2023, the company said in a statement. The agreement is in line with Dubai’s vision to convert all taxis in Dubai to green vehicles by 2027.

Economic Group Holdings is owned by a businessman Sheikh Majid bin Hamad Al Qasimi who is also the chairman of the group.

The company claims to have the largest fleet of private taxi vehicles in the United Arab Emirates and has approximately 6000 taxi vehicles. 83 percent of the cars in Dubai’s fleet are currently powered by green hybrid engine technology, the chairman said in a statement.

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Al Qasimi said the company is working on a plan to convert its remaining vehicles to electric vehicles and is also considering using hydrogen-powered vehicles in the future.

He said Economic Group Holdings looks forward to “expanding collaboration” with Elon Musk-owned company and other EV manufacturers.

Why it matters: The Tesla Model 3 was supposedly the first all-electric yellow cab in NYC. After receiving taxi certification in 2019, the first Model 3 taxi made over 100 trips in its first week of operation and was operated by DriveSally.

Taxi services are striving to drive more and more electrically. ride hailing platform lyft aims to have a 100% electric fleet by 2030. Vingroup chairman Pham Nhat Vuong announced the formation of the Green and Smart Mobility Joint Stock Company (GSM) dedicated to exploitation VinFast Electric cars for rental and taxi services.

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