Dubai Taxi revenue and profit soar as fleet expands

Wam

Dubai Taxi Company (DTC), a subsidiary of the emirate’s transport regulator, reported that revenue rose 16 percent year on year to AED558 million ($152 million) in the first quarter of 2024 due to a growing fleet and more taxi journeys.

Revenue in the core taxi segment rose 15 percent annually, driven by increased trips, trip lengths and higher tariffs, as more taxis were added to the fleet.

The limousine segment’s revenue increased 7 percent year on year and 17 percent quarter on quarter. 

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Taxis and limousines completed 12 million trips during the quarter, an increase of 8 percent year on year. A total of 94 new taxi licenses were acquired at the latest Road and Transport Authority’s (RTA) auction.

The first quarter profit, impacted by the introduction of corporate tax and rising finance costs, rose 15 percent year on year to AED108 million. Excluding the tax, profit was up 26 percent. Free cash flow for the quarter reached AED123 million.

“We are confident in the steady growth of Dubai’s population underpinned by strong economic fundamentals and its status as a leading business and leisure destination,” said CEO Mansoor Rahma Alfalasi.

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The company plans to expand and broaden its services in neighbouring emirates, he added.

DTC maintains a positive outlook across all segments, citing the emirate’s strong economic outlook and an anticipated compound annual growth rate (CAGR) of 2.8 percent in the resident population between 2023 and 2040.

Tourist visits are expected to grow at a CAGR of 20.5 percent between 2023 and 2025.

The emirate received just over 5 million international visitors in the first quarter of 2024, an increase of 11 percent year on year, the company said.