No workforce reduction at Dubai Taxi, says CEO

Dubai: Dubai Taxi Company (DTC) has not cut jobs despite fluctuations in demand linked to the ongoing conflict between the United States, Israel and Iran, which has disrupted regional travel and mobility patterns.

The DFM-listed company’s chief executive told Gulf News that business has remained “fully functional” across all services and continues to support its drivers.

“We have not undertaken any workforce reductions,” said Mansoor Rahma Alfalasi, CEO of Dubai Taxi Company told in a written Q&A. “Our drivers are our most valuable asset, and we have stood by them during this period.”

Alfalasi drew a clear distinction between operational disruption and shifting customer demand — a key point as the mobility sector navigates changing travel patterns.

“Our operations have remained fully functional across all verticals — taxis, buses, limousines, e-hailing, and delivery bikes — with no structural disruption to service delivery,” he said. “The impact we have seen is demand-driven rather than operational, and that is an important distinction.”

Instead of cutting capacity, DTC has been reallocating resources. Fleet vehicles were moved away from weaker segments such as airport transfers — which tend to fluctuate with travel demand — towards shorter, essential trips that have remained more stable.

“In terms of resource allocation, we have actively redeployed fleet capacity away from lower-demand areas such as airport routes, redirecting toward essential and shorter-distance trips,” Alfalasi said.

E-hailing — app-based taxi booking services — has emerged as a strong performer, supported by convenience and transparent pricing. Meanwhile, the delivery bike business continues to grow rapidly, driven by Dubai’s booming on-demand delivery market.

A major factor behind DTC’s resilient performance is its cost structure, said Alfalasi. Driver earnings are largely commission-based, meaning costs rise and fall in line with trip volumes.

“Driver costs are largely variable and commission-based, meaning they flex naturally with trip volumes,” he said.

This flexibility has allowed the company to absorb demand shocks without resorting to layoffs. He added that DTC has not needed to tap external borrowing.

“We have not drawn on any credit facilities, and we have paid our dividends from internal cash generation,” he said, describing it as “a clear reflection of a business that is built to weather difficult periods”.

Looking ahead, the CEO expects stable performance over the next two quarters, thanks to Dubai’s strong economic fundamentals.

“Dubai's fundamental drivers — population growth, tourism, and continued infrastructure investment — remain intact,” he said.

He also pointed to the continued rollout of autonomous taxis — self-driving vehicles — as evidence that DTC’s long-term strategy remains on track.

“The on-schedule rollout of our autonomous taxi services reflects both our operational strength and our commitment to Dubai's goal of having 25 per centof all autonomous transport by 2030,” he added.

With global fuel prices remaining volatile, questions often arise about their impact on taxi fares.

Alfalasi clarified that fares are not set by operators but by regulators.

“Taxi fares are always reviewed and decided by the regulator based on prevailing fuel prices,” he said. “DTC implements these regulated tariff changes accordingly.”

He added that running a more efficient and sustainable fleet — including electric vehicles — helps reduce operating costs over time, even if fare adjustments depend on fuel trends.

DTC also plans on accelerating its transition to electric vehicles (EVs) as part of a long-term sustainability strategy.

The company plans to convert its entire taxi and limousine fleet to fully electric by 2040, with clear milestones: 30 per cent by 2030, 50 per cent by 2035, and 100 per cent by 2040. It currently operates more than 500 electric vehicles.

To support this shift, DTC is working with Dubai Electricity and Water Authority (DEWA) to expand charging infrastructure.

Under the agreement, 208 charging points will be installed across 11 locations. The first phase — 24 ultra-fast chargers at DTC’s headquarters — is expected in the second quarter of 2026, followed by additional installations at key depots, including the airport.

Artificial intelligence is also playing a growing role in operations.

DTC has developed a multi-layered AI strategy covering predictive (demand forecasting), generative (insight generation), and agentic (automated decision-making) technologies.

A flagship initiative is its EV Mobility Intelligence Platform, developed with Presight AI. This acts as a digital command centre, integrating real-time vehicle data, predictive analytics, and route optimisation.

The goal, Alfalasi said, is to “drive greater speed, intelligence, and impact” across operations while improving customer experience.

As Dubai prepares to launch flying taxis — also known as air taxis — by 2026, DTC sees itself playing a key role in first- and last-mile connectivity.

This refers to transporting passengers between vertiports (take-off and landing hubs for air taxis) and their final destinations.

“The first and last mile of a journey is a key focus for ensuring a seamless travel experience,” Alfalasi said.

With a fleet of more than 11,000 vehicles and existing links to metro stations, airports, hotels, and malls, DTC is positioning itself as a backbone of Dubai’s integrated mobility network.

The December to February peak season — typically driven by tourism, major events, and favourable weather — has delivered solid results so far.

“Trip volumes and utilisation levels have remained healthy, supported by strong airport flows, large-scale events, and sustained population growth,” Alfalasi said.

A full performance breakdown will be released in the company’s upcoming quarterly results.

Alfalasi also said DTC’s delivery bike division continues to be a standout performer, recording 84 per cent year-on-year revenue growth to Dh78.4 million in 2025.

The company now operates more than 3,000 delivery bikes across Dubai and other UAE cities, supported by partnerships with major platforms such as Careem, Talabat and Deliveroo.

With Dubai’s population surpassing 4 million and online food delivery projected to reach Dh6 billion by 2030, the segment is expected to remain a key growth driver.