Dubai's cabs generate business worth Dh365m each year

The 4,750 registered cabs operating in Dubai generate about Dh365 million ($100 million) worth of annual business shared by the four operators – Dubai Transport Corporation, Cars Taxi, Metro Taxi and National Taxi, according to a senior transport official.

However, this could be about half of the total market potential with the rest being divided among the radio taxis, limousine service providers, tour operators, illegal individual operators and cabbies from the neighbouring emirates, said P.S.M. Habibulla, joint managing director of Cars, the parent company of Cars Taxi, one of the three franchisee cab operators licensed by Dubai Transport.

The calculation is based on a daily average of Dh200 to Dh250 generated from the market by each taxi, of which the drivers earn about 30 per cent of the revenue. Some drivers are employed on a salary.

"Our estimate is that the size of Dubai's passenger transport market could be anywhere between Dh600 million and Dh700 million, about half of which is shared by the four operators. The rest is shared by others including a large number of illegal operators and individuals," said Habibulla.

Cars Taxi was established in 2000 with an investment of Dh40 million. It is part of the ETA-Ascon Group.

"The share of the market served by the illegal individuals could be anywhere between Dh200 million and Dh 250 million.

"A lot of individuals ferry passengers in and out of Dubai which is affecting our business and we are losing customers to them. They approach customers at the side of the street and carry them to the desired destination at a bargain price. In the end we suffer. And if the customer is a tourist, the reputation of Dubai suffers as they provide inferior service.

"This is done by small-time individuals as well as some microbus drivers who try to utilise their spare time to earn extra. These practices should be stopped soon."

The Dubai government successfully transformed the passenger transport market in the 1990s by replacing about 6,000 individual taxis with fleets of modern vehicles under the Dubai Transport Corporation, which was set up in 1994 and operates about 2,500 passenger vehicles.

Each of the three franchisee operators are allowed to operate a maximum of 754 cabs, while the Corporation owns 2,500 vehicles.

Dubai Transport has also permitted five radio taxi operators.