Dubai Taxi Company (DTC) is set to expand its services into Abu Dhabi with the upcoming launch of Bolt for taxis, marking a significant step in its broader UAE mobility strategy. This initiative aims to enhance ride-hailing options within the emirate, following its recent success in Dubai.

Strategic Expansion into Abu Dhabi

In December 2024, DTC launched Bolt in Dubai, which laid the groundwork for this new venture. The move coincides with DTC’s recent AED 1.45 billion acquisition of National Taxi, enhancing its presence in Abu Dhabi, where DTC now holds a 12% market share in the taxi sector. This strategic acquisition will not only position DTC favorably in a growing market but also enables it to establish a more extensive ride-hailing platform across the UAE.

Mansoor Rahma Alfalasi, Group CEO of DTC, mentioned that the company has already conducted a soft launch of Bolt in Abu Dhabi’s limousine segment. He expressed optimism about operational integration, stating that the successful rollout of Bolt will serve as an opportunity to connect taxis with other operators, thereby boosting overall efficiency and customer options.

Significant Market Impact

The acquisition of National Taxi marks DTC’s first major investment since its public offering and is expected to complete in early Q3 2026, pending regulatory approvals. This deal is being financed entirely through bank debt, allowing DTC to avoid additional equity issuance. Alfalasi indicated that the fleet could grow to nearly 10,000 vehicles, which is anticipated to increase trip volumes significantly as market conditions stabilize.

DTC finished the previous year with 52 million trips and forecasts an increase to around 70 million trips post-acquisition, with National Taxi contributing approximately 25 million annual trips. National Taxi’s existing fleet of over 2,700 vehicles has already made a substantial impact, logging 25.4 million trips in the past year.

Opportunities for Growth in Abu Dhabi

The National Taxi acquisition is poised to elevate DTC’s market share in Dubai from 47% to around 59%. Entering Abu Dhabi with a solid footprint offers DTC substantial growth potential, especially given the city’s status as one of the UAE’s most developed urban centers. Alfalasi pointed out that achieving a 12% market share in this competitive environment is crucial for DTC as it navigates the complexities of entering such a market.

DTC’s broader strategy also includes exploring opportunities in other emirates, with an initial focus on lighter expansion models through Bolt. While the primary focus remains on Dubai and Abu Dhabi, possibilities for markets like Ajman and Sharjah are under consideration. This expansion is part of a larger trend as the UAE’s taxi and ride-hailing landscape continues to evolve in response to population growth and increasing demand for digital transportation solutions.

Aiming for a Comprehensive Mobility Platform

Looking towards the future, DTC envisions becoming a comprehensive mobility platform across the UAE, with potential expansion beyond the country’s borders. Alfalasi revealed that in five years, the goal is to solidify DTC’s standing as a major player across various mobility segments, while also exploring advancements in e-hailing and autonomous vehicles. The pivotal role of scale becomes increasingly apparent in achieving these objectives, particularly in a market that is progressively shifting towards more technologically driven solutions.

With plans for heightened focus on electrification supported by charging infrastructure partnerships, DTC is positioning itself at the forefront of a rapidly changing transportation landscape. The company anticipates that their acquisition will yield positive financial returns within the first year of ownership, bolstered by operational synergies and improved procurement efficiencies. The competitive atmosphere in the UAE taxi and ride-hailing market, marked by Bolt’s recent entry and ongoing innovations, will further enhance consumer choices and broader transport opportunities.