UAE Online Taxi Market to Grow with a CAGR of 4.25% through 2030
Rising smartphone penetration, growing preference for on-demand
transportation, and integration of digital payment solutions are the factors
driving the market in the forecast period 2026–2030.
According to TechSci Research report, “UAE Online Taxi Market – By Region, Competition, Opportunities & Forecast, 2020-2030F”,
The UAE Online Taxi Market was valued at USD 337.92 Million in 2024 and is
expected to reach USD 433.78 Million by 2030 with a CAGR of 4.25% during the
forecast period.
The UAE online taxi market is experiencing a dynamic shift, influenced
by the region’s strong emphasis on sustainability, tourism growth, and
regulatory evolution. The government's green mobility targets and initiatives,
such as converting a significant portion of the public and private transport
fleet into low-emission vehicles, are encouraging digital taxi platforms to
integrate eco-friendly vehicle options and cleaner transport models. The
ongoing digital transformation across sectors, supported by the UAE’s Smart
Mobility 2030 vision, is prompting ride-hailing operators to embed more
automation, cloud-based fleet management, and data-driven customer engagement
tools into their platforms.
A rapidly growing influx of tourists, combined with major international
events and hospitality expansions, has also fueled the demand for reliable and
multilingual ride services, with online platforms tailoring offerings for
visitors and short-term residents. Moreover, strategic partnerships between
telecom providers, financial institutions, and mobility firms are enabling
bundled digital services, such as in-app payments and telecom-linked discounts,
making ride-booking more seamless and cost-effective. Unlike traditional taxis,
app-based platforms now serve as integrated lifestyle enablers, blending
transport with food delivery, parcel logistics, and even health services.
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UAE Online Taxi Market Is Segmented by User,
Payment Mode, Vehicle Type, and Region.
In 2024, online payment
emerged as the fastest-growing mode in the UAE’s online taxi market, driven by
the country’s digital shift and growing trust in secure fintech platforms.
Users increasingly preferred in-app payments for their speed, safety, and convenience,
reducing reliance on cash. The popularity of contactless cards, QR codes, and
wallet-to-bank integrations streamlined checkouts and boosted user
satisfaction. With features like real-time expense tracking, digital receipts,
and reward-linked transactions, online payments became the go-to choice. High
smartphone use, widespread internet access, and a national push for a cashless
economy further accelerated this trend.
Sharjah saw the fastest
growth in online taxi service adoption in 2024, supported by its rising
population and focus on digital mobility. Demand surged from students and
professionals in expanding residential and business zones. Stronger road
connectivity, enhanced digital infrastructure, and smart transport policies
encouraged app-based ride bookings. Localized platforms, faster pickup times,
and bilingual accessibility helped users embrace online taxi services,
positioning Sharjah as the UAE’s leading region in digital ride-hailing
adoption.
Major Market Players
Operating in UAE Online Taxi Market Are:
- Uber Technologies Inc
- Dubai Taxi Corporation
- Tawasul Transport Company (Das Holding Group of
Companies)
- XRIDE Technologies Inc.
- taxi-dubai.ae
- TALIXO (Public In Motion GmbH)
- Citi Taxi L.L.C
- National Taxi L.L.C
- Roads and Transport Authority
- Yango GCC Electronic Transport Services LLC
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With growing concerns around passenger and driver safety, online taxi platforms are prioritizing secure travel experiences through enhanced verification and monitoring systems. Technologies such as facial recognition, driver background checks, trip monitoring, and SOS alert buttons are being incorporated into apps to ensure safety. In-app features allowing users to share trip details with contacts or access emergency services have become standard expectations. Some platforms are even implementing real-time audio or video recording during rides for added accountability. Driver training on behavior, etiquette, and emergency protocols further enhances the sense of security. Biometric logins, encrypted communications, and user feedback loops contribute to maintaining trust”, said Mr. Karan Chechi,
Research Director of TechSci Research, a research-based global management
consulting firm.
“UAE Online Taxi Market By User (Individuals, Corporate, Tourist), By Payment Mode (Cash, Online Payment, Mobile Wallets), By Vehicle Type (SUV/MPV, Hatchback, Sedan), By Region, Competition, Opportunities & Forecast, 2020-2030F”,
assesses the market's future growth potential and provides data on market size,
trends, and forecasts. It aims to offer comprehensive market insights, helping
decision-makers make informed investment choices. The report also highlights
emerging trends, key drivers, challenges, and opportunities in the UAE Online
Taxi Market.
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