Dubai Taxi Company shows recovery signs in June after challenging Q2

Dubai Taxi Company shows recovery signs in June after challenging Q2

Dubai Taxi Company began showing signs of recovery in June after a challenging second quarter, with year-on-year trip declines narrowing to 11.2% from 36.7% in April, as weaker airport and tourism activity gradually eased.

The improvement followed a difficult period during which reduced airport passenger volumes and softer tourism-related demand weighed on the company's core taxi and limousine businesses. Despite continued growth in its delivery bike operations and fleet expansion, quarterly revenue and profit declined.

DTC, which went public on the Dubai Financial Market in February 2024 at Dh1.85 per share with a market capitalization of Dh4.6 billion in an IPO oversubscribed 130 times, completed 10.3 million taxi and limousine trips during the second quarter, compared with 13.6 million a year earlier. Trip volumes rose approximately 31% between April and June, while the annual decline eased from 36.7% in April to 24.4% in May and 11.2% in June.

Airport traffic decline weighs on mobility demand

The company maintained full operations throughout the quarter without service disruptions, even as regional uncertainty that emerged in March affected airport and visitor-related activity. Dubai International Airport handled 18.6 million passengers in the first quarter of 2026, down 20.6% from 23.4 million in the same period of 2025, with March traffic particularly affected at 2.5 million passengers, a 65.7% year-on-year decline.

The airport downturn marked a sharp reversal from 2025, when Dubai International Airport handled 95.2 million passengers, the highest annual international passenger traffic ever recorded by any airport. The airport had projected 99.5 million passengers for 2026 before the regional disruptions began affecting operations.

Second-quarter revenue fell 22.5% year-on-year to Dh484.5 million, compared with Dh625.1 million in the same period of 2025. First-half revenue reached Dh1 billion, down from Dh1.2 billion a year earlier, following strong demand in January and February before conditions weakened from March through the second quarter.

We are encouraged by the sequential improvement in mobility activity through May and June, which provides early signs of normalisation and we remain confident in Dubai's long-term macroeconomic fundamentals, supported by ongoing urbanisation, population growth and continued investment in transport infrastructure across the emirate.

Mansoor Rahma Alfalasi, Group CEO of Dubai Taxi Company, added:

While the operating environment remained challenging across much of the quarter, particularly in airport- and tourism-related demand, we remained fully operational across all segments and continued to serve customers across the UAE.

Revenue pressures across core segments

Taxi revenue declined to Dh396.8 million from Dh539.7 million, while limousine revenue fell to Dh24.5 million from Dh30.5 million. Taxi trip volumes during June were 30.9% higher than in April, reflecting progressive improvement in activity toward the end of the quarter.

The RTA and Ministry of Family launched the Family First programme in April 2026, offering 50% taxi fare reductions for People of Determination along with transport discounts for seniors and students, adding further pressure to revenue per trip alongside volume declines.

Quarterly earnings before interest, taxes, depreciation and amortisation declined 57.2% to Dh77.2 million, while the EBITDA margin fell to 15.9% from 28.9% a year earlier. Net profit reached Dh10.4 million, compared with Dh105.4 million during the second quarter of 2025, down 90.1%. First-half net profit totalled Dh61.1 million, while 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 conservative level.

Non-taxi businesses provide stability

Performance outside the taxi and limousine businesses remained more stable during the quarter. Bus revenue increased 2.3% year-on-year to Dh32 million, supported by long-term government contracts. Delivery bike revenue rose 53.1% to Dh27.9 million, reflecting continued demand across the UAE's on-demand delivery market.

DTC's total operating fleet reached 11,928 vehicles by the end of June. Its taxi fleet stood at 6,522 vehicles, including 669 fully electric vehicles, following continued investment in capacity and fleet electrification.

The company acquired another 600 taxi licence plates through a Dubai Roads and Transport Authority auction in April, increasing its Dubai market share to 46% before the inclusion of National Taxi. DTC also expanded into Ajman and extended the Bolt platform into Abu Dhabi, initially through limousine services and later through taxis, as part of its plan to build a larger multi-emirate mobility platform.

National Taxi acquisition creates largest UAE operator

DTC completed its acquisition of National Taxi in early July 2026 for Dh1.45 billion, giving the combined business approximately 59% taxi market share in Dubai and about 12% in Abu Dhabi. The transaction created the UAE's largest taxi operator, with a combined taxi fleet exceeding 9,000 vehicles and a total fleet surpassing 14,000 vehicles across all categories.

National Taxi operated approximately 2,500 licensed taxi plates and over 2,700 vehicles across Dubai, Abu Dhabi and Al Ain. In the year ended July 2025, National Taxi completed 25.4 million trips with net revenue of Dh774 million and a 98% fleet utilization rate.

DTC expects the acquisition to contribute to earnings from the first full year of ownership, supported by identified operational synergies.

Dividend policy adjusted amid market conditions

DTC's board will consider any shareholder distribution for the 2026 financial year at year-end instead of following its usual semi-annual payment cycle. When the company went public in 2024, it committed to a minimum dividend payout of 85% of net profit, paying its first dividend of Dh71 million in April 2024 for fourth-quarter 2023 operations.

The company said the decision would provide greater flexibility to balance financial resilience, investment in long-term growth and shareholder returns during the current operating environment.

The RTA also recalculated monthly taxi vehicle fees covering March to May, resulting in Dh25.6 million in fee reductions across DTC's taxi fleets. The financial benefit will be recognised in the company's third-quarter results and will partially offset the impact of weaker mobility demand during the period.