When you land in Dubai today and open a car rental app, the experience is still often the same: high deposits, opaque fees, long counters, and paper forms. WheelsOn, a two-year-old UAE startup, is betting that this model is about to be rewritten—and it has just raised $12.5 million to do it.
The funding, a blend of equity, fleet financing, and bank debt, values WheelsOn at around $30 million, positioning WheelsOn as one of the region’s more ambitious digital mobility plays.
A Car Rental Platform Built Around “No Deposit”
Founded in 2023 by Nikolay Melnichuk, Adlet Shagirov, and Maxim Olivson, WheelsOn was created out of frustration with the traditional rental experience in the UAE—security deposits blocking thousands of dirhams, surprise charges, and time-consuming paperwork.
WheelsOn flips that model.
The company runs a deposit-free, fully digital car rental platform, with everything—from registration and KYC to contract signing and vehicle return—handled inside its mobile app. Customers get clear pricing, fast booking, and no physical counters.
The startup is built to serve both:
- Residents who want flexible monthly or long-term rentals
- Tourists and business travelers who want cars delivered without navigating branches or deposits
Inside the $12.5M Raise
The raise includes:
- $2.2M in equity, with participation from MENA-focused investors including partners from Xploration Capital
- $6.5M allocated for fleet expansion
- $4M in bank financing, adding leverage for vehicle acquisition
This deal pushes the company’s valuation to nearly $30 million, notable for a startup just two years old in an asset-heavy category dominated by legacy rental firms.
Why WheelsOn Owns Its Entire Fleet
Unlike many mobility apps that operate as aggregators, WheelsOn owns and operates its fleet—over 200 vehicles across 15 brands, offering options from compact cars to SUVs and vans.
Examples of current vehicle pricing include:
- Audi Q3 Sportback — approx. 369 AED/day
- Chevrolet Tahoe RST — approx. 353 AED/day
- Hyundai Staria — approx. 398 AED/day
Owning the fleet gives WheelsOn full control over:
- Pricing and utilization
- Vehicle quality and maintenance
- Customer experience, delivery, and turnaround times
The company also manages insurance, maintenance, and 24/7 roadside assistance internally.
AI Pricing, Personalization, and Digital Keys
A significant portion of the funding will fuel tech development, including:
- AI-powered dynamic pricing to optimize rental prices based on demand and availability
- Personalized recommendations for cars, insurance, and rental periods
- Digital car keys, enabling contactless pickup and return without physical handovers
These features move WheelsOn closer to an on-demand mobility platform, mirroring the seamless UX consumers expect from ride-hailing and delivery apps.
Riding a Transformation in the UAE Car Rental Market
The UAE’s car rental market is large, tourism-heavy, and still dominated by deposit-driven, branch-centric models. But the shift toward digital is accelerating. By 2030, nearly 90% of UAE rental bookings are projected to be online.
WheelsOn is positioned at the center of this shift with:
- Deposit-free access
- Fully mobile onboarding
- Flexible daily, weekly, and monthly rentals
If executed well, the company could become a mobility-as-a-service operator rather than a traditional rental agency.
Looking Beyond the UAE
While its base today is Dubai, WheelsOn plans expansion into other Gulf markets where the same problems persist—large deposits, inconsistent digital experiences, and rising expectations from mobile-first consumers.
Over the next few years, the company aims to:
- Expand its fleet aggressively
- Scale its user base across the Gulf
- Deepen automation across pricing, fleet management, and customer support
The growth of WheelsOn signals that mobility, technology, and asset-heavy operations can coexist successfully with the right capital structure and product philosophy.
Key Takeaways for Founders and Operators
- Clarity wins: “Deposit-free, digital-first rentals” is a sharp angle that solves a real pain point.
- Structure matters: Asset-heavy categories often require blended financing—not just VC.
- Experience is the differentiator: Speed, transparency, and app-first service are redefining the category.
- Follow macro shifts: As online bookings become the default, native digital brands gain the advantage.
Editor’s Note — The Startups MENA Team
At Startups MENA, we track how the region is quietly redesigning everyday infrastructure—how we move, pay, learn, and work. WheelsOn’s $12.5 million raise is not just a funding milestone; it’s a window into how mobility in the Gulf is being rebuilt around software, data, and user trust.
For decades, car rentals in the UAE have relied on balance-sheet strength and physical presence: branches, paper contracts, and deposits large enough to shut out many users. A new generation of startups is challenging that default, asking a different question: What if access to a car felt as seamless as ordering a ride or paying with a digital wallet?
By combining an owned fleet with AI-driven pricing, deposit-free access, and a mobile-first journey, WheelsOn is part of a broader shift where traditional sectors—transport, real estate, logistics—are being re-platformed on top of consumer-grade UX and smart capital structures.
As Gulf economies double down on tourism, talent attraction, and digital infrastructure, the winners will be companies that turn legacy friction points into product features. WheelsOn’s story is an early chapter in that playbook: mobility that is not only more convenient, but more transparent, data-driven, and regionally scalable.
— The Startups MENA Editorial Team
