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 |