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Taxi-hailing app Careem has resumed its services in Ramallah in the West Bank after striking a deal with Palestinian transport authorities, Reuters reported.

The Dubai-based service suspended services in November, four months after launching there, at the request of the Palestinian Authority.

Careem said in a statement it had agreed with the Palestinian transport ministry for its fares to be the same as metered taxis.

It has restarted services only with licensed taxi drivers but plans to later add private cars.

The firm claims it can remain competitive even with the same rates as regular taxis because of the convenience of booking and paying for a ride.

It said it had hundreds of drivers signed up in the West Bank where the Palestinian unemployment rate is high.

Careem added it would look at introducing its service to more cities in the Palestinian territories this year.