Al Fujairah Taxi Service Market Outlook to 2028

Fujairahs demographic composition reveals a notable trend with a significant proportion of non-Emirati residents (66%) of total population

Fujairah's demographic composition reveals a notable trend with a significant proportion of non-Emirati residents (66%) of total population. The integration of advanced technologies, such as improved mobile apps, GPS tracking, and online payment systems enhance the overall efficiency and convenience of taxi services. The companies are committed to strategically invest in the digitization of the mobility services industry to enhance operational excellence.

Car Taxi Service, Platinum Taxi, and Reyama Taxi are the only three players present in taxi service market in Fujairah. Fujairah’s GDP contributed only 1.3% to the total GDP of UAE ($ 507 billion) in 2022, driven by cargo and container activities at Fujairah Port. A hotel occupancy rate of 71% for the UAE and 54% for Fujairah in 2022 indicates a demand for accommodation due to strong trading opportunity in the region which indicates a demand for taxi services.

The 30-50 age group predominantly utilizes taxi services in Fujairah, driven by their active involvement in economic activities and businesses within the city. Market is in growth stage due to factors such as increasing population, urban development, and a growing preference for convenient and reliable transportation services. Al Fujairah Taxi Service Market is consolidated with only 3 organised players in the sector.

Al Fujairah Taxi Service Market Analysis

Reyama Taxi is an Emirates Transport associate company, in partnership with Fujairah Transport Corporation. It manages and operates taxis in the Emirate. It provides Sedan cars in taxi service.

Platinum Taxi has started its operations in Fujairah on 1st April 2021 and currently operating 150 Taxis. All Platinum Taxi vehicles are brand new Toyota Camry Hybrid and Corolla Hybrid vehicles.

Car Taxi provide taxi services in all 6 Emirates. It offers the fastest, most convenient cab service in UAE. It provides Sedan cars in taxi service.

By meticulously managing the acquisition of vehicles, taxi companies ensure efficiency and reliability, laying the foundation for superior customer satisfaction. This strategic optimization not only enhances operational efficiency but also underscores a commitment to providing reliable transportation services.

Key Trends by Market Segment

By Age Group: The age group 20-30 rely on traditional taxi services because they have limited capital investment to afford a private vehicle. The age group of 30-50 is the leading contributor of taxi services in Fujairah, largely due to their extensive engagement in various economic activities and businesses within the region.

They often comprising working professionals, entrepreneurs, and individuals involved in shipping & cargo, relies on taxi services for convenient and efficient transportation to navigate their daily work routines, contributing to the sustained demand for taxis in the area. Reliance on taxis may increase due to potential health considerations or a preference for hassle-free transportation in retirement age group which is 50 years and above.

By Gender: Men in Fujairah commonly use taxis for various purposes, including daily work commutes, business activities, or when seeking a convenient transportation option that aligns with their busy schedules.

Also, their share in the population is higher (65%). The choice is influenced by factors such as time efficiency and ease of access. Cultural norms and expectations influence women's choices regarding transportation. In some cultures, women are more inclined to use private or family-owned vehicles for safety and cultural reasons. Women in Fujairah have limited involvement in business activities. Thus, they occasionally travel.

Competitive Landscape

Major Players in Al Fujairah Taxi Service Market

Car Taxi Service, Platinum Taxi, and Reyama Taxi are the only three players present in taxi service market in Fujairah.

Fujairah lacks strict regulations on taxi vehicle types and age, utilizing lower-value cars, in contrast to Dubai's standardized models.

Dubai Taxi has embraced the use of electric model taxis, contributing to sustainability efforts and reducing environmental impact in the city.

In Fujairah, the taxi permit process involves recruiting drivers, conducting driving classes, passing RTA and taxi permit tests.

Drivers in the UAE taxi industry undergo a comprehensive onboarding process, including tourist visa conversion to work visa and adherence to specific driving rules.

Future Outlook

The market will grow at a CAGR of 8.1% during 2022-2027 due to Fleet modernization, economic growth and business tourism.

Fleet modernization, incorporating fuel-efficient or electric vehicles, acts as a catalyst for taxi companies in Fujairah. It addresses the environmental concerns and become appealing to the environmentally conscious consumer base. For instance, in February 2023, RTA director announced the plan to transform taxis into environmentally-friendly vehicles to optimize energy usage and promote environmental sustainability in the UAE.

Economic and tourism growth in the region leads to increased business activities, resulting in higher demand for corporate travel and taxi services. For instance, in November 2023, Fujairah plans to double the number of visitors to its archaeological sites, aiming to reach half a million visitors.

The emirate had recorded around 1 lakh visits to its top seven archaeological sites in 2022.