Taxi and delivery bike sectors drive DTC's impressive Q1 growth, revealing robust performance.
Dubai Taxi Company (DTC) posted robust first-quarter results for 2025, buoyed by growth in its taxi, delivery bike, and limousine operations, as well as a surge in fleet expansion in line with the city's burgeoning population and tourism growth.
The company reported a 5% year-on-year increase in revenue, reaching AED 588.3 million, with a like-for-like growth of 7%. This upward trend was primarily driven by the expansion of DTC's operational fleet, which rose by 26% to encompass 9,872 vehicles.
The taxi segment alone saw a 7% revenue boost to AED 515 million, fueled by higher trip volumes and the integration of 250 fully electric vehicles, bringing the total taxi fleet to over 6,200. Notably, 86% of DTC's taxi fleet is now hybrid or electric, supporting the city's environmental sustainability goals.
DTC also witnessed exceptional growth in its delivery bike segment, with revenue skyrocketing 110% due to rising demand in the on-demand delivery market. Its limousine business also recorded a 3% revenue growth, bolstered by fleet expansion. Collectively, these segments facilitated a total of 12.8 million trips during the quarter.
EBITDA declined 9% year-on-year to AED 154.4 million, and net profit dropped 23% to AED 83.6 million, largely due to promotional expenses tied to the launch of Bolt's ride-hailing platform by DTC's digital arm, Connectech. Excluding these promotional costs, core EBITDA rose 4%, maintaining a healthy margin of 30%.
Looking ahead, DTC's new five-year partnership with Dubai Airports, slated to make DTC the exclusive taxi provider for DXB and DWC, is expected to generate AED 2.5 billion in revenue and over 8 million annual trips by 2029. The integration of Bolt's e-hailing app into airport taxis has already shown promise, with high download rates and rapid service times.
DTC's strategy is anchored on fleet expansion, the adoption of electric and hybrid vehicles, and harnessing digital partnerships to foster sustainable and scalable growth in line with Dubai's urban development objectives. The company remains optimistic about future growth across all segments, spurred by Dubai's ambitious urban and economic expansion.
- The Dubai Taxi Company (DTC) is exploring potential investments in the transportation industry, aiming to capitalize on Dubai's future growth, particularly in the automotive sector.
- With the city's continued emphasis on health and wellness, DTC is considering ventures in the healthcare industry to offer eco-friendly transportation options for patients and medical facilities.
- Leveraging its success in ride-hailing, DTC is planning to expand its business in the tourism sector, offering customized transportation services to tourists and feature local attractions as part of the experience.
- To strengthen its financial position and maximize returns, DTC is evaluating opportunities in the finance industry, focusing on asset management and investments that align with their core objectives.
