Shared taxis, in essence mini-buses, are a cheap way to travel locally. Shared taxis tend to conform to a timetable, so they become useful if you have missed the day's bus to the nearby spots like Sharm el-Sheikh, or if you need to get into Dahab when arriving from the Aqaba ferry. To get to Dahab from Eilat, if you don't have a car, take a taxi to the border, walk across, and grab a shared taxi on the other side.
Getting around Dahab itself on foot is quite simple, the promenade runs right along the seafront and all the usual amenities are located along it. Bicycles would be an excellent way of getting around, but most rental bicycles are poorly maintained and as such are in terrible shape. Many businesses are distinctly unenthusiastic about the bicycle-rental aspect of their commercial operation, quoting inflated prices and creative time definitions "1 day" = 6 hours. Even large and supposedly reputable operators are not immune from deficiencies in this area.
