Dubai Taxi Company Achieves AED 588.3 Million Revenue In Q1 2025 Driven By Fleet Expansion

Dubai Taxi Company (DTC) reported impressive results for the first quarter of 2025, showcasing strong performance across its main business areas. The company's growth is supported by Dubai's expanding population and tourism, which continue to boost demand for transportation services. Revenue rose by 5% year-on-year to AED588.3 million, driven mainly by fleet expansion and the success of DTC's taxi and delivery bike operations.

The taxi segment saw a 7% increase in revenue, reaching AED515.0 million due to more trips and an expanded fleet. Since January, DTC added 250 fully electric vehicles, bringing the total number of taxis to over 6,200 by March 2025. With over 86% of the fleet now hybrid or electric, this aligns with Dubai's sustainability goals under the 2040 Urban Master Plan.

DTC's limousine segment experienced a modest revenue growth of 3%, totalling AED34.3 million in Q1 2025, aided by fleet expansion. The company completed 12.8 million trips during the quarter, marking an 8% increase year-on-year. Across all segments, DTC's operational fleet grew by 26% year-on-year to reach 9,872 vehicles.

The bus segment faced a revenue decline of 14% to AED31.6 million due to changes in contractual terms affecting revenue recognition cycles. However, this did not impact the overall annual contract values.

DTC has entered into a five-year strategic partnership with Dubai Airports to remain the exclusive taxi service provider at Dubai International (DXB) and Dubai World Central - Al Maktoum International (DWC). This partnership underscores DTC's role as a leading provider of premium mobility services in Dubai.

Bolt, a global shared mobility platform, integrated around 700 taxis from DTC’s airport fleet into its platform. This collaboration offers travellers arriving at Dubai airports convenient ride-hailing services through the Bolt app.

Financial Performance and Strategic Investments

DTC's EBITDA decreased by 9% year-on-year to AED154.4 million but maintained a healthy margin of 26%. Excluding Connectech impacts, EBITDA rose by 4% with a robust margin of 30%, consistent with Q1 2024 figures.

The net profit dropped by 23% year-on-year to AED83.6 million due mainly to promotional discounts during Bolt's launch campaign. Excluding Connectech effects, core business operations showed resilience with only a slight decline of 2% year-on-year.

Future Outlook and Growth Opportunities

DTC remains optimistic about its future across all business segments, supported by Dubai's strong economic outlook and expected population growth exceeding 50% between 2024 and 2040. The emirate’s GDP growth and stable inflation further bolster this positive outlook.

Dubai continues to strengthen its position as a top global tourist destination with international overnight visitors increasing by 3% in Q1 2025 compared to last year. Dubai Airports aims to maintain its status as the world’s busiest airport targeting over 100 million passengers by 2026.

DTC’s CEO Mansoor Rahma Alfalasi stated: "DTC delivered a solid start to the year, with strong growth across our core taxi and delivery bike segments reflecting the sustained momentum in Dubai’s mobility landscape." He emphasised their commitment to operational efficiency amid rising demand driven by population and tourism growth.

During an Annual General Meeting, shareholders approved a final cash dividend of AED122.3 million for H2 of FY2024 representing an attractive payout ratio aligned with company policy distributed in April this year.

With inputs from WAM