Dubai's Taxi Industry Experiences a 7% Increase in First Half of 2025
In the first half of 2025, Dubai's taxi industry witnessed a significant 7% increase in trips compared to the same period in 2024, according to the Roads and Transport Authority (RTA). This growth was driven by several key factors, as reported by the RTA.
The total number of passengers carried during this period rose to 103.5 million, an increase from 97 million in H1 2024, indicating more frequent taxi usage. The number of active taxi drivers also increased from around 13,000 to nearly 14,000, allowing for more trips and reducing wait times.
The service efficiency of Hala Taxi, Dubai's official taxi service, improved in H1 2025. 74% of trips had estimated arrival times under 3.5 minutes, compared to 70% under four minutes in H1 2024. This enhancement in user experience encouraged more trips.
Significant growth was recorded in e-hailing services, hourly vehicle rentals, and the Hala Taxi service. Hala Taxi's share of total trips increased from 40.3% to 41.3%, representing a 2.5% rise. However, the growth in these services did not lead to a corresponding increase in the total number of trips compared to H1 2024.
Adel Shakri, Director of Planning and Business Development at the Public Transport Agency, emphasized the strong growth in e-hailing, hourly rental services, and Hala Taxi usage. He also noted that this growth demonstrates Dubai's economic dynamism and global appeal as a hub for investment and tourism.
It's worth mentioning that Hala Taxi's share of total trips increased slightly from 41.3% to 41.4%, representing a minimal 0.1% rise.
The growth in trips also reflected Dubai’s economic vibrancy and its strengthened position as a global investment and tourism hub, boosting demand for taxi transport.
Overall, the combined effect of an expanded driver base, enhanced service efficiency, digital service use, and increased passenger demand due to the city's economic and tourism growth explain the 7% taxi trip increase in early 2025.
- The growth in Dubai's taxi industry, particularly in e-hailing, hourly rental services, and Hala Taxi usage, suggests a strong investment opportunity due to the city's economic dynamism and global appeal as a hub for tourism.
- Financing for business sectors such as transportation, specifically taxi services, may attract investors given the signs of growth and increased demand, as demonstrated by the 7% increase in trips during H1 2025.
- The development of Dubai's taxi industry is intertwined with the growth of tourism and business, as evidenced by the expansion of services like e-hailing, hourly vehicle rentals, and the increased use of Hala Taxi.
- The increase in trips provided by Dubai's taxi industry, a key contributor to the transportation sector, indicates a positive trend in development that may stimulate further business and investment opportunities in related industries.
