Transport

Dubai Taxi partners with Bolt to take on Uber

October 16, 2024, 6:55 PM

Bolt, based in Tallinn, has experienced rapid growth; the deal will allow DTC to integrate Bolt's ride-hailing tech into its fleet Bolt Dubai Taxi Company — Bolt, based in Estonia, has experienced rapid growth: the deal will allow DTC to integrate Bolt's technology into its fleet

Utilises Bolt’s ride-hailing tech
DTC has 46% market share
Bolt used in 600 cities

Dubai Taxi Company has signed a deal with the Estonian company Bolt to launch its “e-hailing” platform in the emirate, competing with existing operators such as Uber and Careem.

The launch of the platform was announced during a signing ceremony between DTC and Bolt at Gitex Global.

Mansoor Rahma Alfalasi, CEO of Dubai Taxi, called it a “landmark strategic partnership” that will bring together DTC, the UAE’s largest fleet owner, and Bolt, “a leading global shared mobility platform”.

“The combined strengths of both companies will create an unparalleled local mobility leader that supports DTC’s ambitious plans for growth,” he said.

DTC, which is majority-owned by Dubai’s finance department, holds a 46 percent market share of mobility operators in the emirate.

It operates 8,900 vehicles, including almost 6,000 taxis, and offers a range of services including taxis, VIP limousines, buses, and last-mile delivery bike services. In 2023, the company’s taxis and limousines completed 46 million trips.

The partnership between DTC and Bolt, which is based in Tallinn, is focused on the integration of Bolt’s digital technology for booking rides into DTC’s fleet and operating system.

In March 2024 Dubai Taxi Company announced the company’s net profit had surged 54 percent year on year to AED345 million ($94 million) in 2023, as fleet size and trips increased.

Dubai’s Roads and Transport Authority aims to transition 80 percent of taxi trips to e-booking in the coming years — a goal that DTC said the new partnership with Bolt will support.

The launch of the new platform was announced during a signing ceremony between DTC and Bolt at Gitex Global — The launch of the new platform was announced during a signing ceremony at Gitex Global

Bolt was founded in 2013 and has experienced rapid growth in recent years. Today, it operates in more than 600 cities across 50 countries, including in Saudi Arabia and Egypt, offering services such as ride-hailing, e-bicycle and scooter rental, short-term car rental, and grocery delivery.

DTC reported in July that it had approved a dividend payout of AED159 million ($43 million) for the first half of 2024 despite a marginal 1 percent increase in net profit.

Net earnings reached AED187.4 million in the first six months of the year, up from AED186.3 million at the same time last year, impacted by interest and the introduction of corporate tax.

Revenue grew 14 percent year on year to just over AED1 billion.

DTC listed on the Dubai Financial Market in December 2023, and its share price is up around 25 percent so far this year.

Bolt will compete with Hala, a ride-hailing service set up in 2019 as part of a joint venture between Careem, the local subsidiary of Uber, and the Roads and Transport Authority (RTA).

AGBI reported in September 2023 that Hala had recorded a 36 percent annual growth in trips in the first six months of 2023. Hala said at the time that it managed 21,000 drivers on its platform with a fleet of 12,000 cars provided by its franchise partners.