ASSESSMENT CRITERIA

SEMANTIC ASSESSMENT OF TAXI SECTOR IN DUBAI

Ownership

6 companies 1 semi-public (Taxi Dubai owned by RTA) & 5 private - Taxi Dubai is dominating the market with a market share in terms of fleet size around 45%

Market Size

A Taxi Requirement 5 Year Plan 2016-2020 was Endorsed allowing the taxi fleet to reach 12,765 by 2020 - 6 Companies are allowed to operate including Dubai Taxi-Arabia-Car-City-Madina-Metro―Market size has the potential to grow―however market size is regulated by PTA

Market Entry/Exit

Regulated by RTA (Only 6 Companies are currently allowed to provide taxi services)―Market exit rules should be developed

Fare Determination

Decided by planner/regulator to insure a balance between taxi companies profitability and customer satisfaction

Regulation

Exercised by PTA which is an RTA government agency. This presents a partial conflict of interest

Regulatory Regime

Moderate (Encouraging rather than discouraging and maintaining a balance between companies financial sustainability and customer satisfaction/happiness)

Regulatory Aspects

Market Size - Entry to market - Quality and Age of Vehicles - KPIs including safety customer satisfaction, driver and operation standards, etc.

Market Competition/ Monopoly

Yes (intermodal between the 6 taxi companies and modal between taxi sector and other modes such as Limo, bus, metro, car, etc.) However taxi Dubai has a share of 45% of the taxi fleet while other companies range from 0.4% for city taxi to 17% for Cars showing a market imbalance with Dubai taxi almost creating a semi monopoly. There is a potential for small taxi companies to merge to create a more balanced competitive market.

Government Involvement

Yes

Attractiveness of Market Entry

Very High

Strategic Planning

Yes by PTA/RTA

Goals

Main goals are Financial Viability, Sustainability & Customer Satisfaction/Happiness

Funding

Mixed (Government & Private)

Pricing Policy

Determined by Regulator (PTA)

Subsidy

Limited (Some Social Services such as special needs services)

Organizational Structure

Developing

Management/Decision Powers

High

Legal Structure

Developing