Dubai Taxi Company revenue hits Dh588.3 million in Q1, driven by 8% YoY trip growth

09/05/2025 02:08 AST

Dubai Taxi Company on Thursday reported a five per cent in first quarter revenue to Dh588.3 million, with strong underlying performance across its core business lines.

DTC's taxi segment revenue increased 7 per cent year-on-year to Dh515.0 million, driven by increased trip numbers, as the company increased its fleet. Since the beginning of the year, the company has expanded its operational fleet by 250 fully electric vehicles, bringing the total to over 6,200 taxis as of March 2025. More than 86 per cent of the fleet now consisting of hybrid or electric vehicles.

DTC's net profit declined 23 per cent year-on-year to Dh83.6 million, driven primarily by the impact of the promotional discounts offered as part of Bolt's launch campaign.

The company's Ebitda decreased to Dh154.4 million, down 9 per cent year-on-year, while maintaining an attractive margin of 26 per cent. Excluding the impact of Connectech, Ebitda increased 4 per cent year-on-year with a robust margin of 30 per cent, in line with Q1 2024, as DTC remained focused on driving operational efficiencies. Excluding Connectech, the core business delivered a resilient operational performance, with a slight decline of 2 per cent year-on-year.

During the Annual General Meeting, shareholders approved a final cash dividend of Dh122.3 million for the second half of the financial year ended 2024, representing 4.89 fils per share and 85 per cent of net profit, in accordance with the company's dividend policy. The approved dividend was distributed to shareholders in April 2025.

The company said its fundamentals remain strong, supported by Dubai's population and tourism growth as well as urban expansion which continued to drive demand for mobility services.

The limousine segment saw revenue increase by 3 per cent year-on-year to Dh34.3 million in Q1 2025, supported by the expansion of its fleet with additional vehicles. The company's taxis and limousines completed 12.8 million trips during the quarter, up 8 per cent year-on-year. Across segments, DTC's total operational fleet rose 26 per cent year-onyear to 9,872.

DTC's bus segment was affected by contractual changes that altered the revenue recognition cycle during the first quarter, without impacting the overall annual contract values. As a result, revenue for the quarter decreased 14 per cent year-on-year to Dh31.6 million.

The company's delivery bike segment continued to deliver stellar growth with revenue up 110 per cent, as it expands in the rapidly growing on-demand delivery market, leveraging partnerships with major delivery aggregators.

Other services, which primarily comprises DTC's digital arm Connectech which includes Bolt e-hailing operations, were impacted by promotional discounts offered as part of Bolt's launch campaign. These investments, aimed at accelerating customer acquisition and driving long-term growth for the business, were deliberately front-loaded into the first quarter in line with seasonal activity patterns. As part of a disciplined approach, these initiatives are capped at 2 per cent of full-year revenue. Bolt's operational performance has so far exceeded expectations, and it is well-positioned to not only accelerate consumer adoption but also to support DTC's expansion into other emirates, reinforcing the company's ambitious growth strategy.

DTC's CEO, Mansoor Rahma Alfalasi, added: "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. The expansion of our fleet and continued investment in operational efficiency enabled us to serve rising demand, driven by the city's ongoing population and tourism growth. We are also proud of our long-term strategic partnership with Dubai Airports, strengthening our market position and further aligning DTC with Dubai's vision as a leading global mobility hub, as well as our strategic partnership with Bolt, which has delivered exceptional operational results in its first quarter that set a strong foundation for continued success. We remain confident in the fundamentals of our business, supported by a healthy balance sheet and a scalable platform positioned for growth. Looking ahead, we will continue to optimise our operations, enhance customer experiences, and capture opportunities across Dubai's rapidly evolving mobility ecosystem."

Bolt, the global shared mobility platform, deployed around 700 taxis which are part of DTC's dedicated airport fleet, to its platform. The implementation of the ride-hailing service for airport taxis through the Bolt app offers unparalleled convenience to travellers arriving at Dubai's airports thus delivering innovative and digital transportation solutions tailored to the needs of Dubai's visitors. Since the launch of the partnership in December 2024, the Bolt app has 279,000 downloads, and 267 fleet partners have been onboarded with 14,600 cars registered on the platform, demonstrating the strength of the ecosystem DTC is building. The platform has maintained an average estimated time of arrival under three minutes, ensuring fast, reliable, and convenient service for customers.

Outlook
DTC has a positive outlook across all its business segments, enabled by Dubai's strong economic outlook and a forecast resident population growth of more than 50 per cent between 2024 and 2040. The emirate's robust GDP growth, stable inflation, and a record government budget of 272 billion dirhams for 2025-2027 further reinforce this positive outlook.

Beyond favourable demographics and macroeconomic strength, Dubai continues to solidify its position as a leading global tourist destination. In the first quarter of 2025, international overnight visitors grew by 3 per cent year on year, building on a strong 9 per cent increase in 2024. Dubai Airports is also on track to maintain its position as the world's busiest airport, targeting 100 million passengers by 2026.

With the continuous fleet expansion, including the addition of more airport taxis, DTC is positioned to capture value from the emirate's robust growth while its investments in technology and partnerships will continue to unlock exciting new growth opportunities.

Khaleej Times