Dubai Taxi: How DTC is tackling fuel costs, debt as demand recovers ahead of winter peak
Dubai: Dubai Taxi Company is banking on a recovery in travel demand, tighter operating controls and savings from its National Taxi acquisition to protect profitability as Dubai heads into its traditionally busy December travel season. But higher fuel costs, acquisition-related borrowing and weaker underlying margins remain challenges for the transport operator. Sign up for our daily business…
Dubai Taxi Company is focusing on increasing revenue and managing costs as demand for its services recovers ahead of the winter travel peak. In the third quarter, the company's revenue rose 25.7 per cent year-on-year to Dh735.5 million following the acquisition of National Taxi, but net profit fell 25.3 per cent to Dh57.1 million and EBITDA margin narrowed to 22.6 per cent from 25.9 per cent.
CEO Mansoor Rahma Alfalasi told Gulf News that the company was ready to capture any market demand and prioritising debt reduction and operational efficiencies. Airport-related business showed a 40 per cent increase, while overall trip volumes improved from April's 30 per cent decline. Higher fuel costs are a challenge, with the RTA reviewing fuel-related fare adjustments every two months, causing operators to be exposed to sharp price increases.
DTC is exploring options to manage fuel costs, including electric vehicle expansion and better fleet utilisation.
Written by urgent.news from Gulf News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
