(MENAFN) The Dubai Taxi Company has recently made headlines with an update regarding their fare structure, revealing an adjustment that impacts commuters across the city. According to the company's official announcement, taxi fares in Dubai have seen an increase, with the new charge now standing at Dh2.09 per kilometer, marking a 12 fils uptick from the previous rate of Dh1.97 per kilometer. Notably, this revision specifically reflects changes in fuel consumption, while the base rate remains steadfast at Dh12, ensuring continuity in the pricing structure for passengers.
This move by the Dubai Taxi Company falls in line with the strategic approach outlined by the Roads and Transport Authority (RTA), which advocates for a dynamic pricing system responsive to the fluctuating fuel prices prevailing in the local market. This dynamic adjustment mechanism ensures that fare revisions are aligned with the current economic landscape, particularly in light of consecutive months of petrol price escalations. For instance, Super 98, a commonly used fuel variant, witnessed a surge from Dh2.82 per liter in January to Dh3.34 per liter by May, underscoring the necessity for fare recalibrations to reflect these market shifts accurately.
Despite the challenges posed by rising fuel costs, the Dubai Taxi Company has showcased resilience and robust financial performance in the face of these dynamics. In the first quarter of the year, the company reported a notable uptick in both revenue and profits, with profit after tax soaring to Dh108 million, up from Dh94 million in the preceding year. This remarkable achievement can be attributed to the sheer volume of completed trips, totaling an impressive 12 million journeys undertaken by taxis and limousines during this period.
Chief Executive Officer Mansoor Alfalasi expressed his satisfaction with the company's performance, citing a remarkable 15 percent year-on-year revenue growth and an astounding 40 percent increase in EBITDA. Looking ahead, the Dubai Taxi Company is poised for expansion, with plans to double the fleet of airport taxis and acquire an additional 94 new taxi licenses through the latest RTA auction. These strategic initiatives not only bolster the company's position as the preeminent taxi operator in Dubai but also underscore its unwavering commitment to supporting the emirate's burgeoning urban landscape.
Alfalasi emphasized the pivotal role of the Dubai Taxi Company in shaping Dubai's mobility ecosystem, particularly as the city's urban areas continue to expand. By offering innovative solutions tailored to meet the diverse needs of Dubai's residents and leveraging cutting-edge technologies to optimize operational efficiency, the company remains at the forefront of driving sustainable growth and enhancing overall mobility experiences for passengers across the city.
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