Dubai Taxi profit dropped sharply during the first quarter of 2026 as regional tensions disrupted travel and transportation demand. However, the company continued expanding its fleet and digital services despite weaker activity in March.
The transport operator reported net profit of Dh50.7 million during the quarter. That figure marked a 39 percent decline compared with the same period last year.
Executives said business activity remained strong during January and February. However, conditions changed quickly in March as regional uncertainty increased across the Middle East.
Tourism activity slowed during the month. Many businesses shifted toward remote work arrangements. Schools also introduced distance learning measures in some areas. As a result, taxi and limousine trip volumes declined significantly.
Despite these challenges, the company maintained operations across all transport divisions in the UAE. Management also pointed to strong demand earlier in the quarter before regional tensions escalated.
Revenue for the first quarter reached Dh551.1 million. However, this represented a 6 percent decline year-on-year. During January and February alone, revenue increased by 10 percent as demand remained strong.
The taxi division generated Dh455.3 million during the quarter. However, revenue in this segment fell 12 percent as passenger demand weakened in March.
Fleet expansion continued throughout the quarter. By March 2026, the operational taxi fleet reached 6,217 vehicles. The company also operated 594 fully electric taxis across Dubai.
The limousine division generated Dh29.2 million in revenue. That segment declined 15 percent due to weaker airport activity during March.
The bus division performed better. Revenue increased 7 percent year-on-year to Dh33.7 million. This helped offset weaker performance in other segments.
The delivery bike division recorded the strongest growth. Revenue surged 61 percent to Dh26.6 million during the quarter. Demand for delivery services continued expanding across the UAE.
During January and February, delivery bike revenue jumped 74 percent compared with last year. Analysts linked this growth to rising demand for on-demand delivery services.
Across taxi and limousine operations, the company completed 11 million trips during the quarter. However, total trip volumes declined 14 percent year-on-year.
Dubai Taxi profit also came under pressure from weaker EBITDA performance. Earnings before interest, taxes, depreciation, and amortisation fell 22 percent to Dh120.7 million.
Even so, executives highlighted stronger performance in January and February. EBITDA rose 17 percent during those months before regional tensions affected activity in March.
The company’s total operational fleet reached 11,417 vehicles by the end of March. This represented a 16 percent increase compared with last year.
Management said it continues monitoring regional developments closely. However, it remains confident about long-term growth prospects in Dubai’s transport sector.
Population growth continues supporting transport demand across the emirate. Tourism recovery and infrastructure investment are also expected to improve future performance once conditions stabilise.
Dubai Taxi profit remains under pressure in the short term. However, the company continues investing in sustainable transport and digital mobility solutions to support long-term expansion.
