Dubai: Dubai Taxi Company (DTC) reported a 13% year-on-year increase in revenue to Dh16 billion in its financial results for the nine months ended September 30 2024. Profit before tax and interest costs increased 19% year-on-year to Dh 319.3 million, DTC said.
“This is a comparable metric year-on-year as corporate tax was not payable in 2023. Reported net profit declined 7% year-on-year to Dh 247.1 million, due to the introduction of corporate tax in the UAE and increased interest costs,” the company said in a statement.
The Emirate’s leading mobility solutions provider also reported a nine-month EBITDA growth of 20% year-on-year to Dh432.2 million late Wednesday. Since the start of the year, the company also expanded its operating fleet by 444 vehicles, taking its total operational taxi fleet to 5,660 at the end of the period.
This does not include the recently awarded 300 new taxi licences, which have been rolled out post-period, said the mobility provider. DTC’s market share increased to 46% as of September 30. Moreover, a total of 36 million trips were completed across the taxi and limousine segments, up 5% year-on-year.
“DTC maintained strong momentum during the first nine months of 2024 as it continued to execute its fleet expansion strategy and expanding its lucrative exclusivity agreements,” DTC said in a statement.
DTC’s CEO, Mansoor Rahma Alfalasi, said, “DTC delivered a strong set of results during the nine-month period as we continued to deliver on our growth priorities and position the company for future growth. With accessibility and innovation a priority for DTC, we partnered with mobility leader Bolt to launch its cutting-edge platform in Dubai.
He added, “This partnership will significantly expand our customer base to include Bolt’s existing global users, unlocking new potential revenue streams for DTC.”
Revenue increases
DTC said its revenue increases were driven by positive performance across all its segments, including Dubai’s positive macroeconomic environment, increased tourism and population growth.
Providing a further breakdown, revenue in DTC’s taxi segment increased 12% year-on-year to Dh 1.39 billion, driven by increased trips and average trip length.
The limousine segment reported a revenue increase of 3% year-on-year to Dh 89.1 million. The company’s taxis and limousines completed 36 million trips during the period, up 5% year-on-year.
DTC’s bus segment secured new service contracts, adding 77 vehicles to its fleet. As a result, revenue increased 27% year-on-year to Dh 87.7 million. Partnerships with major delivery aggregators in the UAE, including Talabat, also supported the expansion of the company’s delivery bike segment, which saw revenue grow 2.5 times.
The Company’s strong topline performance resulted in a 20% year-on-year increase in EBITDA to Dh432.2 million, at a margin of 27%, it said.
Cost savings
DTC said it continues to focus on cost optimisation through operational efficiencies and adopting fuel-efficient vehicles in line with its sustainability commitments. DTC’s taxi and limousine fleet is now more than 85% environmentally friendly, consisting of hybrid or electric vehicles.
Operational highlights
DTC was awarded 300 new taxi licences at the Road and Transport Authority auction during the third quarter, which increased its Dubai taxi market share to 46%. The additional taxis are expected to generate an additional Dh100 million in annual revenue, with 25% of the new licences allocated to electric taxis.
