Dubai Taxi Company plans to launch driverless service in 2026, CEO says

Dubai Taxi Company is planning to launch its first autonomous taxi service in the emirate by the first quarter of 2026 to support Dubai's mobility strategy, its chief executive has said.

The company is currently in talks with a number of its partners to accelerate the project, Mansoor Alfalasi told The National on Thursday.

"Of course, we are working very closely with our colleagues at the RTA [Roads and Transport Authority] to make sure that we cover all the aspects with regards to regulations, safety and operations," he said in an interview.

"A lot of exercises like testing need to be done in between ... so hopefully by the beginning of next year we'll see the first autonomous car hitting the road."

The RTA will decide in which areas DTC's autonomous cars will be deployed, he added.

The company is also exploring the possibility of launching its autonomous vehicle service with multiple car companies, "not necessarily sticking to one", Mr Alfalasi said.

"We haven't made any selection because we are exploring different companies and we make sure that whenever we run a service, it should be beneficial for us in terms of safety, [which is a] top priority, and profitability," he added.

The UAE aims to become a leader in smart mobility systems to boost sustainability and adopt the latest technologies. Dubai began supervised testing of driverless vehicles on its public roads in October 2023 after the US self-driving tech company Cruise, which is backed by General Motors and Honda Motor, was issued with a trial permit.

In Abu Dhabi, Uber and China's WeRide launched the Middle East's first commercial driverless mobility service in December. The UAE capital already has its own fleet of driverless taxis on Yas Island run by TXAI, the UAE's first driverless taxi service.

In addition, electric air taxis are expected to begin operating in Dubai during the first quarter of 2026, the RTA confirmed in September. DTC is also exploring a number of opportunities outside Dubai, including any potential partnerships or acquisitions, Mr Alfalasi said.

It has already partnered with delivery service Talabat in Abu Dhabi for last-mile services, which is "really lucrative and [provides] a lot of potential" to DTC, he said. DTC also has a partnership with the Ras Al Khaimah Transport Authority, which it signed in 2023.

"We still don't have clarity, but the opportunities are there. To build the business, we are working on this organically; of course, any kind of merger or acquisition, we are looking into it," Mr Alfalasi said.

DTC on Wednesday announced its first full-year results after its initial public offering last year, with net profit down by about 4 per cent annually to Dh331.3 million ($90.2 million) on interest charges and tax obligations. But excluding interest and tax, profit was up 18 per cent year-on-year.

DTC is looking to further expand its fleet in 2025; the company added 744 vehicles in 2024, taking its total operational taxi fleet to 5,960. "The target in 2025 is to stay aggressive with acquiring new [taxi] plates because Dubai is building up its population and urban planning, as well as its visitors," Mr Alfalasi said.

Revenue for the 12 months ended December grew more than 12 per cent annually to nearly Dh2.2 billion, driven by the growth in Dubai’s population, tourism and urban expansion.

DTC's board of directors has also recommended an additional Dh122.3 million dividend for 2024, taking the fiscal year's total to Dh281.6 million, "in line with our highly attractive dividend policy to distribute at least 85 per cent of annual net profit", the company said.