Dubai’s population and tourism growth, as well as urban expansion that drove demand for mobility services, led to Dubai Taxi Company (DTC) posting a 12 per cent year-on-year increase in revenue to a record AED 2.2 billion ($600 million).
In its first-ever full-year financial result since going public, Dubai’s mobility solutions provider said the strong topline performance resulted in a 19 per cent YoY increase in EBITDA to AED 584.4 million ($159.1 million), at a margin of 27 per cent.
However, net profit declined by 4 per cent to AED 331.3 million ($90.2 million), due to the introduction of corporate tax in the UAE and increased interest costs. However, on a comparative basis, excluding tax and interest costs, net profit increased by 18 per cent year-on-year.
Net debt to EBITDA ratio stood at 1.13x and the company had a cash balance of AED 336.1 million ($91.5 million).
Dubai Taxi Company expands fleet, market share
In 2024, DTC increased its fleet of taxis by adding 744 vehicles, which took its total operational taxi fleet to 5,960. It secured 994 new license plates and the allocation of 644 additional plates through RTA auctions. It doubled its airport taxi fleet and increased its taxi market share in Dubai to 47 per cent.
A good indicator of Dubai’s popularity with new residents and tourists was a 6 per cent increase in the number of trips completed, which reached 49 million across the taxi and limousine segments.
Taxi segment revenue increased 12 per cent YoY to AED 1.92 billion ($520 million). The limousine segment saw revenue increase by 8 per cent to AED 124.5 million ($33.9 million).
The bus segment also delivered a solid performance, having secured new service contracts and expanding its fleet size. Revenue increased 11 per cent to AED 119.2 million ($32.46 million).
The delivery bike segment delivered stellar growth with revenue up 2.3 times, as it expands in the rapidly growing on-demand delivery market through partnerships with major delivery aggregators.
Abdul Muhsen Ibrahim Kalbat, DTC’s Chairman, said: “Our strong performance in FY 2024 demonstrates our ability to capitalise on Dubai’s positive growth story as we focus on delivering world-class mobility solutions in the emirate and support its ambitious urban development and mobility strategy.
“Building on our success during the year, we launched our bold new five-year corporate strategy, which positions DTC as the ‘preferred mobility choice for everyone’. The new strategy will drive double-digit growth across our portfolio, supported by additional investments in electric and hybrid vehicles, as we continue to reduce the industry’s environmental impact and promote eco-friendly solutions.
Mansoor Rahma Alfalasi, DTC CEO, added: “DTC delivered a very positive set of results in our first full year as a listed company, setting a strong foundation for our future growth. Revenue increased by 12 per cent to AED2.2 billion, our highest-ever annual revenue.
“Our strong performance was enabled by Dubai’s robust population growth and thriving tourism sector, which drove demand for mobility services across the emirate.
“As we look ahead, we remain focused on leveraging technology, optimising our resources, and implementing our new growth strategy to deliver long-term value for our shareholders and exceptional service for our customers.”
Bolt partnership drives success
During the fourth quarter of 2024, DTC partnered with Bolt, the global shared mobility platform operating in over 600 cities across 50 countries, to launch its e-hailing platform in Dubai. Launched in December 2024, Bolt has proven to be a huge success, with exceptionally strong initial demand. A fleet of premium limousines from over 200 partners, including 18,000 trained drivers, saw the platform complete one million trips by mid-January.
Alfalasi added: “Our exclusive partnership with Bolt has already proven to be a success, with one million trips completed by mid-January after launching the services on the platform in December. This partnership not only strengthens our position in the e-hailing sector but also supports Dubai’s vision to transition 80 per cent of taxi trips to e-booking in the coming years.”
The Board of Directors recommended a final dividend of AED 122.3 million ($33.3 million) for the second half of the year, amounting to 4.89 fils per share.
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