Dubai Taxi revenue jumps 26%, but profit falls as costs rise

Dubai: Dubai Taxi Company (DTC) reported a 25.7% increase in third-quarter revenue to Dh735.5 million, boosted by its acquisition of National Taxi, even as net profit fell 25.3% amid weaker passenger demand and higher financing costs.

Revenue rose from Dh585.3 million a year earlier, while net profit declined to Dh57.1 million from Dh76.4 million, the Dubai-listed company said on Monday. Earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 10% to Dh166.5 million, although its profit margin narrowed.

The results reflect the first quarter in which DTC included National Taxi's financial performance following completion of the acquisition on July 8. National Taxi contributed Dh168 million in revenue during the quarter, while DTC's existing taxi operations continued to face pressure from softer airport and tourism-related demand.

Excluding National Taxi, DTC's taxi revenue declined 6% year-on-year, while EBITDA fell 14.4% and net profit dropped 49.4%. Higher fuel prices, operating expenses and financing costs added to the pressure on earnings.

For the first nine months of 2026, group revenue declined 1.5% to Dh1.77 billion, while net profit fell 55.5% to Dh118.3 million. EBITDA decreased 25.1% to Dh364.4 million.

DTC and National Taxi completed a combined 18.5 million taxi and limousine trips during the third quarter, although passenger volumes remained below last year's levels.

DTC's existing operations recorded 12.4 million trips, down 5.3% year-on-year, while National Taxi completed 6.1 million trips, a decline of 5.2%.

The pace of decline eased as the quarter progressed. DTC's standalone trips were down 7.8% in July, 6.2% in August and just 1.9% in September compared with the corresponding months last year.

Airport-related demand also improved, with DTC recording 1.07 million airport trips during the quarter, an increase of 40% from the preceding three months.

"Although lower airport- and tourism-related demand continued to affect underlying performance, mobility trends improved steadily through the period, with September trip volumes significantly higher than July and approaching prior-year levels," said Mansoor Rahma Alfalasi, Group CEO of DTC.

The company said the improvement gave it greater confidence that passenger demand was returning towards previous levels heading into the fourth quarter.

DTC said approximately 30% of the integration of National Taxi had been completed, ahead of its initial schedule.

The company reported Dh3.9 million in savings and other financial benefits from the integration during the quarter. The combined business now operates 15,388 vehicles, an increase of 16.7% year-on-year.

Its operational taxi fleet reached 9,344 vehicles at the end of September, with the combined business accounting for approximately 59% of Dubai's taxi market, according to DTC.

The company also continued expanding its Dubai fleet, bringing 450 of its 600 newly acquired taxi plates into operation by the end of September.

Despite the larger business, the acquisition has increased DTC's debt. Net debt reached Dh2 billion at the end of September, compared with Dh930.3 million a year earlier, primarily reflecting financing for the transaction.

DTC held Dh425.6 million in cash and liquid investments and said it remained focused on gradually reducing its debt.

While taxi operations faced weaker demand, DTC's delivery bike business recorded stronger growth.

Revenue from the segment increased 75.2% to Dh32.1 million during the third quarter, supported by fleet expansion and demand for delivery services.

Taxi revenue, including National Taxi, increased 27.2% to Dh643.4 million. Limousine revenue declined 2.8% to Dh27 million, while bus revenue remained broadly stable at Dh29.6 million.

DTC also expanded its ride-hailing operations through Bolt, adding another 1,607 Arabia Taxi vehicles to the platform during the quarter.

Bolt completed 2.3 million trips, an increase of 52% year-on-year.

Following the end of the quarter, DTC renewed its agreement with Hala, the ride-hailing venture between Dubai's Roads and Transport Authority and Careem, for another five years. More than 120 million rides involving DTC and National Taxi vehicles have been booked through Hala since 2019.

DTC commissioned a new ultra-fast electric vehicle charging hub in Dubai during the quarter, with 24 charging points forming the first phase of a planned network exceeding 200 points.

The combined taxi and limousine fleet included 846 fully electric vehicles at the end of September.

The company also continued its autonomous vehicle rollout in partnership with Apollo Go and moved its core technology systems to a UAE sovereign cloud platform.

Looking ahead, DTC said its priorities include completing the National Taxi integration, expanding ride-hailing services, improving fleet utilisation and investing in digital mobility technology.

The company expects passenger demand to continue recovering, although it acknowledged that near-term market conditions remain softer than at the beginning of the year.