June sees recovery in Dubai taxi trips after second-quarter dip linked to softer travel demand.
Dubai: Dubai’s taxi and limousine sector showed signs of recovery in June after a challenging second quarter, with the annual decline in trips easing significantly to 11.2%, compared with a 36.7% drop in April.
The recovery followed a period of softer airport and tourism-driven demand that affected Dubai Taxi Company’s main operations during April and May, leading to lower quarterly revenue and profits. This came despite ongoing growth in its delivery bike fleet and an increase in its overall operating fleet.
Dubai Taxi Company (DTC) recorded 10.3 million taxi and limousine trips in the second quarter, down from 13.6 million trips during the same period last year. However, trip volumes increased by around 31% between April and June, while the year-on-year decline gradually narrowed — from 36.7% in April to 24.4% in May and 11.2% in June.
June signals early recovery
DTC continued to operate without service disruptions throughout the quarter, despite increased regional uncertainty emerging in March that affected airport traffic and tourism-related demand. The improvement in June indicated early signs of recovery in travel activity across Dubai.
Dubai Taxi Company’s second-quarter revenue declined 22.5% year-on-year to Dh484.5 million, compared with Dh625.1 million in the same period of 2025.
For the first half of the year, revenue stood at Dh1 billion, down from Dh1.2 billion a year earlier, reflecting strong demand during January and February, followed by softer market conditions from March through the second quarter.
“We are encouraged by the gradual improvement in mobility activity during May and June, which points to early signs of stabilisation. We remain confident in Dubai’s long-term economic outlook, supported by continued urban growth, population expansion and ongoing investment in transport infrastructure across the emirate,” said Mansoor Rahma Alfalasi, Group CEO of Dubai Taxi Company.
“With a fleet of more than 11,000 vehicles and a strong presence across Dubai, the company continues to provide reliable and accessible transportation solutions across multiple service segments,” he added.
Alfalasi noted that while the operating environment remained challenging during much of the quarter — particularly due to weaker airport and tourism-related demand — DTC maintained full operations across all business areas and continued serving customers across the UAE.
Taxi revenue declined to Dh396.8 million from Dh539.7 million, while limousine revenue decreased to Dh24.5 million from Dh30.5 million during the same period.
Taxi trip volumes in June were 30.9% higher than in April, highlighting a gradual recovery in activity as the quarter progressed.
Lower trip volumes impact profitability
Quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA) fell 57.2% to Dh77.2 million, with the EBITDA margin dropping to 15.9% from 28.9% a year earlier.
DTC reported a net profit of Dh10.4 million for the quarter, compared with Dh105.4 million in Q2 2025, representing a 90.1% decline.
For the first half of the year, net profit reached Dh61.1 million, while the company’s cash and cash equivalents stood at Dh409 million at the end of June.
DTC reported a net debt-to-EBITDA ratio of 1.1 times, which the company described as a prudent and manageable level of leverage.
Delivery bike revenue jumps 53%
While taxi and limousine operations faced pressure during the quarter, other segments delivered more stable results. Bus revenue increased 2.3% year-on-year to Dh32 million, supported by ongoing long-term government contracts.
Meanwhile, delivery bike revenue surged 53.1% to Dh27.9 million, driven by continued growth in demand across the UAE’s on-demand delivery sector.
DTC’s total operating fleet grew to 11,928 vehicles by the end of June, with its taxi fleet accounting for 6,522 vehicles, including 669 fully electric taxis. The increase reflects the company’s continued investment in fleet expansion and electrification initiatives.
DTC expands footprint across the UAE
In April, DTC acquired an additional 600 taxi licence plates through a Dubai Roads and Transport Authority (RTA) auction, raising its share of Dubai’s taxi market to 46% before accounting for the acquisition of National Taxi.
The company also broadened its operations beyond Dubai by expanding into Ajman and extending the Bolt platform into Abu Dhabi, initially through limousine services and later through taxi operations. The move supports DTC’s strategy to develop a wider multi-emirate mobility network.
Following the reporting period, DTC completed the acquisition of National Taxi, creating a combined business with an estimated 59% share of Dubai’s taxi market and around 12% of Abu Dhabi’s taxi market.
The deal has created the UAE’s largest taxi operator, with a combined fleet of more than 9,000 taxis. DTC expects the acquisition to begin contributing to earnings from the first full year of ownership, supported by planned operational efficiencies and synergies.
Dividend decision shifted to year-end
DTC’s board will review any potential shareholder distribution for the 2026 financial year at the end of the year, rather than following its previous semi-annual dividend schedule.
The company said the revised approach will offer greater flexibility to maintain financial strength, invest in long-term expansion and deliver shareholder value amid current market conditions.
Meanwhile, the RTA recalculated monthly taxi vehicle fees for March to May, leading to Dh25.6 million in fee reductions across DTC’s taxi fleet.
The financial impact of the fee reduction will be reflected in the company’s third-quarter results and is expected to partly cushion the effects of weaker mobility demand during the period.
