Dubai Taxi Company (DTC) the number one taxi operator by fleet size in the emirate with approximately 45 percent market share, reported 16 percent increase in revenue for the first quarter of 2024 on the back of its taxis and limousines completing 12 million trips during the three months, an increase of 8 percent year on year.
First Quarter revenue was at AED558.4 million ($152.05 million), while net profit was up 15 percent YoY to AED108 million ($29.41 million) despite the introduction of corporate tax in the UAE. Profit was up 26 percent excluding the tax impact. EBITDA increased to AED169.9 million ($46.46 million), at an attractive margin of 30 percent, up 5 percentage points on the prior year.
Mansoor Rahma Alfalasi, CEO, DTC, was pleased with the company’s result and was upbeat about its performance in the future.
DTC’s growth was driven by revenue improvement across all its segments
Alfalasi commented: “We maintained strong momentum into the first quarter of 2024, delivering revenue growth which drove a 40 percent increase in EBITDA, as we continued to execute on our growth strategy.
“During the quarter, we announced the doubling of our fleet of airport taxis and acquired 94 new taxi licenses at the latest RTA auction, further cementing our position as the largest taxi operator in Dubai. We are committed to supporting Dubai’s mobility landscape as the emirate’s urban areas continue to expand by offering solutions that meet the diverse needs of Dubai’s residents and through adopting technologies that enable efficient operations and enhance utilisation.
“Looking ahead, 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. In addition to our plans to grow further in Dubai, we see attractive opportunities to expand and broaden our services in neighbouring emirates.”
Growth was driven by revenue improvement across all its segments. DTC’s core taxi segment revenue was up 15 percent YoY (from AED 419 million in Q1 2023 to AED481 million), driven by increased trips and trip lengths, as well as higher tariffs and supported by the additional taxis added to the fleet.
The limousine segment also grew by 7 percent YoY and 17 percent quarter on quarter. The bus segment revenue increased by 28 percent year on year to AED37 million, also driven by the increase in fleet size and new service contracts.
The delivery bikes segment delivered a standout performance, with revenue increasing more than four times year on year, as DTC capitalised on rapidly growing e-commerce penetration and surging demand for on-demand delivery services.
Free cash flow for the quarter was AED122.7 million.
DTC issued a positive outlook across all segments, enabled by Dubai’s strong economic outlook and a forecast resident population CAGR growth of 2.8 percent between 2023 and 2040, as well as a tourist visits CAGR of 20.5 percent between 2023 and 2025. With the award of new taxi licences and the addition of more airport taxis, DTC is positioning itself to capture value from the emirate’s growth.
Follow us on
