Dubai: In 2023, 114 million trips were made by taxis in Dubai, with 10 million trips made during October alone. Anyone connected with the sector will tell you that 2024 promises to deliver another double-digit growth on trips made.
This is the fuel that’s powering up an eco-system of mobility services provided by fleet operators and digital platforms in the UAE. It’s no longer just about ride-hailing services or taking a car out on a rent-by-the-minute basis.
Need someone to pick up your vehicle for a service and have it delivered? Tap an app and you can get it done. Want to charge the EV before a long trip. Again, you can have someone else do it for you. All this is creating more jobs, whether on the tech side of it or in the actual service delivered to the customer.
Creating a UAE-wide EV charging network
In the near future, the chances of not finding a convenient EV charger will turn remote as a host of blue-chip companies – including e& Group, ADNOC Distribution and TAQA – build up these networks. DEWA already has multiple EV charging points powered up and running.
The impression in the UAE auto retail sector is that by 2026-27, the number of vehicle owners opting for an EV on their next (or even first) purchase will have seen a substantial increase. Earlier concerns about ‘range’ – on the number of kilometers that one full charge can deliver – are subsiding. With EV charging stations being created, not finding an immediate spot to charge up too will lessen.
All that’s left to be done for wider EV take-up rates is for prices to drop. Again, 2025-26 is being talked about as the year when entry-level EV models could turn affordable for more car buyers in the UAE.
From day one, we entered the market fully-compliant with electric and hybrid cars in our fleet. Going forward we are keen to invest more in EVs
-Asad Khan of Green Luxury Car Transport
Last year’s Dubai Taxi Co. IPO and all the numbers that accompanied it provided a clear view of the sort of growth that the wider mobility sector in the UAE can provide. The need for ride options along with less of a need for actual car ownership are trends that are showing up clearly. Tied to this is the slow but steady demand for EVs, even when it comes to choosing an EV as part of the ride hailing service.
“There are a whole lot of add-on mobility services that can be developed beyond taxi rides and ride-hailing,” said a startup founder. “This is the same that happened with cloud kitchens and food order and delivery platforms in the Covid period. The market just boomed overnight.”
Creating fleets around EVs
For now, fleet operators are doing much of the buying support for EVs. Asad Khan is CEO of Green Luxury Car Transport, which launched operations in August last. The intent clearly was to pick up market share in the limousine hiring services, a category that’s been growing at a comfortable growth rate. And with some solid operating margins to boot.
“With huge numbers of younger residents moving into Dubai and also the record tourist arrivals, there is a constant need of high quality passenger transportation that correlates with what this city has to offer,” said Khan.
