Dubai Taxi Company, the leading taxi operator in the emirate, reported revenues exceeding AED 1 billion for the first half of the current year. This result was achieved despite a slowdown in demand related to tourism and airports in the second quarter.
Due to decreased trip volumes in both the taxi and limousine segments, the company's revenue in the second quarter fell by 22.5% compared to the same period last year, reaching AED 484.5 million. Meanwhile, the EBITDA margin decreased by 57.2% year-on-year, amounting to AED 77.2 million. Net profit for the second quarter was AED 10.4 million, with total net profit for the first half reaching AED 61.1 million.
The number of trips taken by taxis and limousines during the second quarter dropped by 24.4% compared to last year, totaling 10.3 million. This reflects weakening demand linked to tourism and airports. Nevertheless, the company noted a gradual improvement in activity throughout the quarter: in June, trip volume only decreased by 11.2% compared to the previous year, contrasting with a 36.7% drop in April, indicating early signs of demand normalization.
In the first half of the year, the company continued implementing its five-year strategy, strengthening its regional presence and enhancing its digital mobility platform. Through a recent auction by the Roads and Transport Authority (RTA), 600 new taxi license plates were acquired, increasing Dubai's market share to 46%, or 59% when including National Taxi. Furthermore, Bolt expanded its operations into Abu Dhabi, initially offering limousine services and subsequently taxis, while DTC entered the Ajman market as part of a broader multi-emirate expansion strategy.
After the reporting period concluded, DTC finalized the acquisition of National Taxi following regulatory approvals. This deal provides the company with a significant presence in Abu Dhabi, with an estimated market share of 12%, and establishes it as the largest taxi operator in the UAE with a combined fleet exceeding 9,000 vehicles. This acquisition is expected to begin generating additional profits from the first full year of ownership.
Looking ahead, the company stated that it continues to observe early signs of demand recovery, despite softer market conditions than at the beginning of the year. Key focus areas include the integration of National Taxi, further regional expansion, development of the Bolt platform, and investments in technology and fleet optimization to ensure long-term growth. DTC also reported that the RTA recalculated monthly taxi fees from March to May, which will lead to a reduction in fees totaling AED 25.6 million, to be reflected in the third-quarter financial statements.
Mansour Rahma Al Falasi, CEO of the DTC Group, noted that although the operating environment remained challenging for much of the quarter, particularly regarding airport and tourism-related demand, the company maintained full operational capacity across all segments and continued serving customers throughout the UAE. He expressed confidence in Dubai's long-term future, supported by urbanization, population growth, and continuous investment in the emirate's transport infrastructure. Al Falasi also emphasized that the company achieved significant strategic successes, including the successful completion of the National Taxi acquisition after the reporting period, making it a leading mobility company in the UAE, contributing to regional expansion across the UAE, and further developing its digital mobility platform.
The Dubai Civil Court ruled that an Arab man must reimburse the sum of 1.7 million dirhams and compensate the creditor for damages. The decision was made after establishing the fact that the check was intentionally prepared using a special correction fluid that altered its details over time, rendering it invalid when presented to the bank.
The court ordered the defendant to return the full amount of the check, as well as pay statutory annual interest of five percent from the payment due date until the debt is fully repaid. Furthermore, the plaintiff was awarded compensation of 30,000 dirhams for material and moral damages suffered during the years-long legal dispute.
This civil ruling followed the defendant's conviction by criminal courts for intentionally issuing a forged check. He received one year in prison and a fine, and the indictment was upheld by the appellate court, becoming final after no further appeals were lodged with the Court of Cassation.
According to court records, the conflict began when the plaintiff handed over 1.7 million dirhams to the defendant and received a check as security for the payment. Initially, the check contained all necessary information. However, when the plaintiff presented it to the bank within the specified period, the bank refused to accept it, discovering that the details had been altered by using a special correcting agent designed to change or fade over time, thereby stripping the check of its legal validity.
The plaintiff then filed a criminal complaint, alleging that the check was deliberately prepared using a deceptive method to prevent its cashing. In its verdict, the Civil Court noted that the final decisions of criminal courts are binding on civil courts regarding the commission of the offense, its legal classification, and the defendant's liability. The court established that the criminal ruling conclusively proved the defendant's intentional use of a deceptive method to prevent payment of the check, which formed the basis for the plaintiff's financial claim.
Moreover, the court ruled that the defendant unjustly enriched himself at the expense of the plaintiff without legal grounds, while the plaintiff was deprived of 1.7 million dirhams for years and forced to engage in lengthy criminal and civil proceedings to recover the funds. The court emphasized that the protracted legal process caused the plaintiff both financial losses and emotional distress, justifying the award of compensation. In addition to the requirement to return the full amount and statutory interest, the court awarded 30,000 dirhams as damages, as well as legal costs and expenses.
