Dubai Taxi Launches New Five-Year Strategy

Building on its success in 2024, Dubai Taxi Company (DTC) has launched its new five-year corporate strategy for 2025 to 2029 which focuses on innovation and excellence, reinforcing its position as the region’s premier mobility operator, and aims for double-digit growth across DTC’s portfolio, alongside a high dividend pay-out ratio.

The strategy defines a new vision for DTC, a leading provider of comprehensive mobility solutions in Dubai, positioning the company as the preferred mobility choice for everyone, the company said in a regulatory filing with Dubai Financial Market (DFM) on Wednesday.

“This vision is supported by an updated mission focused on leading in digital and safe mobility services that meet communities’ needs for convenience, connectivity, and sustainability,” DTC said.

The new strategy is also underpinned by the company’s commitment to sustainability with additional investments in environmentally friendly vehicles and innovative technologies reflecting its drive toward reducing the industry’s emissions and promoting eco-friendly solutions.

DTC Chairman Abdul Muhsen Ibrahim Kalbat said that the company’s five-year corporate strategy will drive double-digit growth across its portfolio, supported by additional investments in electric and hybrid vehicles, as they continue to reduce the industry’s environmental impact and promote eco-friendly solutions.

Outlook

The company said that it has a positive outlook across all its business segments, enabled by Dubai’s strong economic outlook and a forecast resident population Compound Annual Growth Rate (CAGR) of 2.7% between 2024 and 2040.

In 2024, Dubai recorded its highest increase in population since 2018, with the population increasing by over 169,000 during the year to reach 3.83 million at the end of 2024, according to the Dubai Statistics Centre.

The Emirate welcomed 18.72 million international tourists in 2024, an increase of 9% compared to the previous year, demonstrating positive momentum in the key drivers of DTC’s business. Additionally, the International Monetary Fund (IMF) had projected that the UAE economy would expand by 4% in 2024, rising to 5.1% in 2025.

Financial Results

DTC delivered a robust set of results in FY 2024, its first full year of operations since its IPO as its revenue for the year increased 12% y-o-y to $600 million, driven by positive performance across all its segments.

DTC’s taxi segment revenue increased 12% y-o-y to $520 million, driven by increased trip numbers, as it has substantially increased its fleet to better serve its customers.

The company expanded its operating fleet by 744 vehicles since the start of the year, taking its total operational taxi fleet to 5,960. Throughout the year, DTC has secured 994 new license plates, driven by the doubling of its airport taxi fleet and the allocation of 644 additional plates through RTA auctions.

The limousine segment saw revenue increase by a healthy 8% y-o-y to $33.9 million last year. The company’s taxis and limousines completed more than 49 million trips during the year, up 6% y-o-y.

The bus segment delivered solid performance during the year, having secured new service contracts and expanded its fleet size. As a result, revenue increased 11% year-on-year to $32.45 million. The company’s delivery bike segment delivered stellar growth with revenue up 2.3 times, as it expands in the rapidly growing on-demand delivery market through partnerships with major delivery aggregators.

The company’s strong top line performance resulted in a 19% y-o-y increase in EBITDA to $159.11 million, at an attractive margin of 27%. The reported net profit declined by 4% y-o-y to $90.2 million, due to the introduction of corporate tax in the UAE and increased interest costs.

However, on a comparative basis, excluding tax and interest costs, net profit witnessed a robust 18% y-o-y, the company said.