PC: Gulf News
The collaboration aims to expand smart transportation services in Dubai and strengthen DTC’s position in the e-hailing sector.
Dubai Taxi Company (DTC), which is quoted on the Dubai Financial Market, signed an agreement with Bolt, a global mobility services firm to launch an e-hailing platform in Dubai. The pact marks the first step for Bolt’s entry into the UAE market, and DTC will employ it in accordance with its strategic goal of developing smart transportation services in the city.
“E-hailing” refers to the system of accessing public transport in an hassle-free manner by using an application on the smartphone and thereby reducing complexity in booking and payment for a ride.
Bolt was founded in 2013 and is based in Estonia with operations in more than 600 cities across 50 countries. The company has mobility solutions ranging from e-hailing to food and grocery delivery, scooter and e-bike rental, and short-term car rental. Mansoor Alfalasi, CEO of DTC, and Markus Villig, the founder and CEO of Bolt, both oversaw the signing of the deal as a reflection of their commitment to increasing smart mobility in Dubai.
Growth and Market Expansion
This deal will bring massive growth opportunities for DTC. The e-hailing and taxi market in Dubai is about Dh6 billion, and the partnership with Bolt will help DTC tap a larger portion of this opportunity. According to the company’s growth strategy, one of its main goals is to shift 80 percent of the city’s taxi trips to be booked through e-solutions.
This new partnership will enable DTC to expand across the UAE, marking the second step of Bolt into the GCC market after its entry into Saudi Arabia back in 2017. This year alone, Bolt has also launched services in Egypt.
This strategic partnership brings together DTC’s position as the UAE’s largest fleet owner with over 6,000 taxis and limousines with Bolt’s position as a leading global shared mobility platform,” Mansoor Rahma Alfalasi said. “Together, the strength of both companies will create an unparalleled leader in local mobility, which in turn helps serve DTC’s aggressive plans for growth.”
Strategic Benefits
According to experts of the industry, DTC’s massive fleet carries in itself several benefits for the e-mobility space. With its volume, DTC has the potential to bring competitive user-friendly rates for the services it offers on the platform and encourage more customers toward its platform.
It also fits in with the larger vision of Dubai, smarter transportation, fewer old-school taxi-based services. Adoption of an e-hailing solution may improve efficiency, affordability, and access for residents and visitors alike.
Stock Performance
With this new collaboration, good tidings have commenced against the stock performance of DTC. By 1:30 PM on the news day, the stock of DTC was selling on the Dubai Financial Market to a high of 1.49% after selling at Dh2.68.
This collaboration of DTC with Bolt moves one step forward for the transportation sector in Dubai and sets it closer to the ambitions of the city for becoming a smart city with the aim to provide easier and more streamlined service to the passengers.
