Dubai Taxi Company in deal with Bolt to launch e-hailing services in city
Deal with Bolt allows DFM-listed company to unlock bigger share of Dh6b market
Dubai: The DFM-listed Dubai Taxi Company has tied up with Bolt, the mobility services firm, to launch its e-hailing platform in Dubai.
It also marks the launch of Bolt's services in the UAE and marks an expansion of 'smart transportation services' in Dubai in line with 'DTC’s ambitious growth strategy'. (E-hailing services is accessing public transport options through a smartphone app. For users, this gives them access to more budget-friendly transportation services.)
Bolt, founded in 2013, operates in over 600 cities across 50 countries. Its mobility solutions include e-hailing, food and grocery delivery, scooter and e-bike rental, and short-term car rental.
Mansoor Alfalasi, CEO of DTC, signed the partnership agreement with Markus Villig, founder and CEO of Bolt.
The alliance will help DTC to unlock a 'greater share' of the Dh6 billion market opportunity presented by Dubai’s taxi and e-hailing sector.
It will also help Dubai aim to transition making 80% if taxi trips in the city to be done through e-booking solutions.
For Estonia headquartered Bolt, this is the second GCC market it has ventured into after Saudi Arabia in 2017. It is also there in Egypt earlier this year.
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“This strategic partnership brings together DTC’s position as the UAE’s largest fleet owner with over 6,000 taxis and limousines and Bolt’s position as a leading global shared mobility platform," said Mansoor Rahma Alfalasi, CEO of Dubai Taxi. "The combined strengths of both companies will create an unparalleled local mobility leader that supports DTC’s ambitious plans for growth.”
According to industry sources, there is significant gains that a player like DTC can bring to the e-mobility space. "DTC has the fleet size and this can be used to leverage gains when it comes to setting user-friendly rates for the services," said an analyst.
On DFM, the DTC stock is trading 1.49% higher at 1.30pm, at Dh2.68.
There are over 3.5 million cars registered and operating on the UAE’s roads which can cause increased travel time, congestion, accidents and pollution. This long-term strategic partnership with DTC will create a new shared mobility platform in Dubai, reducing the need to use a private car
According to Alfalasi, the Bolt deal also reinforces DTC's 'commitment to supporting RTA (Dubai) directives to transition 80% of taxi trips to e-booking in the coming years'.
"The strategic move will significantly strengthen DTC’s leading position and bolster its vital role in shaping the future of urban mobility in the emirate," the CEO added.