Dubai Taxi Demand Begins to Recover After Softer Second Quarter
By Thasmiya
Dubai’s taxi and limousine market showed early signs of recovery in June 2026 after weaker airport and tourism-related demand affected travel activity during April and May.
Dubai Taxi Company said the year-on-year decline in taxi and limousine trips narrowed to **11.2% in June**, improving significantly from a **36.7% decline in April**. The company described the gradual improvement as an early sign that mobility demand is beginning to normalise.
## **Taxi trips improve between April and June**
Dubai Taxi Company completed **10.3 million taxi and limousine trips during the second quarter of 2026**, compared with 13.6 million trips during the same period in 2025.
Although overall quarterly trip volumes were lower, demand improved progressively throughout the quarter. Taxi and limousine trips increased by approximately **31% between April and June**.
The year-on-year decline in trips improved month by month:
- April: down 36.7% - May: down 24.4% - June: down 11.2%
The figures suggest that the sharp slowdown experienced earlier in the quarter was beginning to ease by June.
## **Airport and tourism demand affected the second quarter**
Dubai Taxi Company attributed the weaker performance mainly to softer airport and tourism-related demand following heightened regional uncertainty that began in March.
The impact was particularly visible across the company’s taxi and limousine businesses during April and May. However, DTC said all services remained fully operational, with no disruption to service delivery.
## **Second-quarter revenue falls to AED 484.5 million**
Dubai Taxi Company reported revenue of **AED 484.5 million in Q2 2026**, down 22.5% from AED 625.1 million during the same quarter last year.
For the first half of 2026, revenue remained above **AED 1 billion**, compared with AED 1.2 billion in H1 2025. The company said January and February delivered a strong start before demand softened from March onwards.
## **Profit drops sharply during Q2**
Lower trip volumes also affected profitability.
DTC reported:
- Q2 EBITDA of AED 77.2 million, down 57.2% year-on-year - An EBITDA margin of 15.9%, compared with 28.9% in Q2 2025 - Q2 net profit of AED 10.4 million - H1 2026 net profit of AED 61.1 million
By comparison, the company recorded a net profit of AED 105.4 million during the second quarter of 2025.
## **Taxi revenue remains the largest contributor**
The taxi segment generated **AED 396.8 million in revenue during Q2 2026**, compared with AED 539.7 million a year earlier.
June provided a more encouraging signal, with taxi trip volumes rising **30.9% compared with April**.
The limousine segment generated AED 24.5 million, down from AED 30.5 million in Q2 2025, primarily because of lower airport activity and reduced international visitor demand.
## **Delivery bike business continues to grow**
While taxi and limousine activity declined, Dubai Taxi Company’s delivery bike segment recorded strong growth.
Delivery bike revenue increased **53.1% year-on-year to AED 27.9 million** during the second quarter, supported by continued demand for on-demand delivery services across the UAE.
The bus segment also remained stable, generating AED 32 million in revenue, up 2.3% year-on-year.
## **Dubai Taxi Company expands its fleet**
Despite the softer quarter, DTC continued investing in its long-term capacity.
By the end of June 2026, the company’s total operating fleet across all business segments had increased to **11,928 vehicles**.
Its taxi fleet stood at 6,522 vehicles, including **669 fully electric taxis**, reflecting the company’s continued move towards lower-emission transport.
## **National Taxi acquisition strengthens DTC’s position**
Dubai Taxi Company also completed its AED 1.45 billion acquisition of National Taxi after the end of the reporting period.
The deal gives DTC a combined taxi fleet of more than 9,000 vehicles and strengthens its presence across Dubai and Abu Dhabi.
Following the acquisition, the company said its combined market share reaches approximately:
- 59% in Dubai - 12% in Abu Dhabi
DTC has also expanded into Ajman, while its Bolt mobility platform has entered Abu Dhabi.
## **RTA fee reduction offers partial support**
The Roads and Transport Authority recalculated monthly taxi vehicle fees for March, April and May 2026.
The adjustment resulted in fee reductions totalling **AED 25.6 million** across DTC’s taxi fleets. The financial benefit is expected to be recognised in the company’s third-quarter results.
## **What happens next?**
Dubai Taxi Company said near-term conditions remain more subdued than at the beginning of the year, but the improvement seen through May and June provides encouraging signs of stabilisation.
The company plans to focus on integrating National Taxi, expanding across the UAE, growing its Bolt platform and improving fleet efficiency.
Its board has also decided to review any shareholder distribution for 2026 at the end of the year instead of following the usual semi-annual dividend cycle.
## **Why this matters**
Taxi demand is closely connected to airport activity, tourism, business travel and everyday mobility across Dubai.
The improvement seen in June suggests that passenger movement may be recovering after a difficult period for the transport sector. However, the sharp decline in second-quarter revenue and profit shows that demand has not yet returned to the levels recorded a year earlier.
Continued tourism growth, population expansion and improving airport activity could support a stronger performance during the second half of 2026.
## **FAQs**
### **Is Dubai taxi demand recovering?**
Yes. Taxi and limousine trip volumes improved steadily between April and June 2026, although June trips remained 11.2% below the same month last year.
### **How many trips did Dubai Taxi Company complete in Q2 2026?**
The company completed 10.3 million taxi and limousine trips, compared with 13.6 million in Q2 2025.
### **Why did taxi demand decline?**
DTC said softer airport and tourism-related demand, following regional uncertainty that emerged in March, affected travel activity during April and May.
### **How much revenue did Dubai Taxi Company earn in Q2?**
The company reported Q2 revenue of AED 484.5 million, down 22.5% year-on-year.
### **What was Dubai Taxi Company’s Q2 profit?**
Net profit reached AED 10.4 million, compared with AED 105.4 million during the same quarter in 2025.
### **Did any part of the business grow?**
Yes. The delivery bike division increased revenue by 53.1% year-on-year to AED 27.9 million.
### **How large is Dubai Taxi Company’s fleet?**
Its total operating fleet across all divisions reached 11,928 vehicles as of June 2026.
## **Source Credits**
Information source and resource owners: Dubai Taxi Company, Dubai Financial Market and Gulf News.
## **Image Credits**
Image sources are combined from AI-generated visuals and other platforms. If any owner wants to be mentioned or any content needs to be changed, please email us at **concerns@whatmatters.ae**.