Developing A Comprehensive Taxi Strategy For Dubai
Developing A Comprehensive Taxi Strategy For Dubai
http://www.scirp.org/journal/jtts
ISSN Online: 2160-0481
ISSN Print: 2160-0473
Keywords
Taxi, Strategy, System, Analysis, Structured, Assessment, Dubai
*Abdulla Al Ali: CEO; Khaled Abbas: Professor and Expert; Mohammad Mazin: Chief Officer.
1. Introduction
Taxi services are among the most frequently used passenger transport services in
many cities in the world. A review of literature issued by several countries and
international organizations indicated that taxi service is not regarded as a com-
petitor to mass transit systems but on the contrary can be considered as a sup-
plement to assist in achieving an integrated mass transit system. A quotation
from the cover page of a recent IRU report has iterated the statement, see [1]
“Taxis Are Part of the Collective Public Transport Chain”. Also it is vital to note
that the policies and measures developed to minimize the use of cars often lead
to a shift of car users from cars to taxis. This falls in line with what is reported by
Singapore Land Transport Authority, see [2] “While Public Transport Is the
Most Efficient Means of Travel, Taxis Bridge the Gap between Commuting and
Driving a Car”. Taxis can be also considered as one of the main Mobility Man-
agement Options as taxi occupancy in many cities averages between 1.5 to 2
passengers excluding drivers which assist in achieving the mobility notion of
reducing Single Occupancy Vehicles (SOV) and increasing High Occupancy Ve-
hicles (HOV). Adapted from [3] “Taxis fill a gap in public transport provision,
providing services in places and at times when other forms of public transport
are unavailable, and for those who are unable to access buses, the metro due to
disability or mobility impairment. Taxis are used by both the highest earning in
the society and those on lower incomes, for business and leisure purposes, at
every hour of the day and night”.
The Taxi sector in Dubai is experiencing substantial changes and challenges.
Powerful market and economic forces are affecting the objectives, roles, size and
structure of this sector. A taxi strategy is meant to understand where we want
the taxi system in Dubai to be in the future and how this can be achieved. Such
strategy spells out the future direction for the taxi system in Dubai, with a clear
set of goals, objectives, policies and initiatives. In this context, this research starts
by developing a conceptualisation of taxi system components & stakeholders in
Dubai. This is followed by classification of core activities, components and
enablers of taxi sector in Dubai.
The purpose of this research is to provide a system analysis and structured as-
sessment of the taxi sector in Dubai. A semantic assessment; using 30 factors, is
conducted. Based on these assessments and diagnostic identification of gaps, is-
sues and potential improvement opportunities, this research develops a com-
prehensive taxi strategy for Dubai. Such strategy involves deciding on acceptable
values, vision, mission statement and strategic goals for the taxi sector in Dubai.
This will culminate, based on the authors’ analysis, several other sources and li-
terature review, into compiling a continuum of 100+ policies, measures and in-
itiatives that can be followed to attain the preset strategic goals. These are classi-
fied under 12 main headings namely: Taxi Depots & Taxi Ranks, and Infra-
structure, Taxi Fleet and supporting facilities/services ITS research innovation
and development, Taxi Services, Fare Policy & Structure, Marketing, Branding &
Image, Planning & service design, Procurement/Decommissioning, Operation &
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Maintenance, Legislation Monitoring & Governance, Quality Health Safety & En-
vironment, Human Resources (Drivers & Inspectors) & Working Environment.
2. Methodology
The following presents the 6 steps methodology followed in this research:
1) Develop a conceptualisation of taxi system components & stakeholders in
Dubai.
2) Develop a classification of core activities, components and enablers of taxi
sector in Dubai.
3) Conduct a description of the characteristics and KPIs of taxi system in Dubai.
4) Conduct a multicriteria semantic assessment of the taxi sector in Dubai. This
is meant to assist in identifying strengths and gaps as related to the taxi sector
in Dubai.
5) Conduct an international bench-markings review of taxi provision in Dubai
as compared to other cities.
6) Develop comprehensive taxi strategy for Dubai taking into consideration to
overcome gaps and improve overall taxi system in Dubai. Such strategy has
its focus on achieving customer happiness.
Figure 1. Taxi system components & stakeholders, source: adapted from [4].
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nents & stakeholders that is typical of many taxi sectors in world cities including
Dubai. Eight components & five stakeholders were identified as constituting taxi
system in Dubai as follows:
Components
1) Taxi Infrastructure (Runways) - These could range from
Moving in lanes with Mixed Traffic
Sharing Bus Transit in Partially Segregated Dedicated Transit ways
Sharing Bus Transit in Fully Segregated Dedicated Transit ways (segregation
is physical or enforceable)
Hybrid
2) Taxi Depots and Taxi Ranks where depots are used for fleet stabling, check-
ing and dispatching taxis. As for taxi ranks these can range from simple stops
with basic shelters to complex taxi ranks with premium amenities. In devel-
oping taxi ranks several design parameters should be taken into account in-
cluding safe and operationally friendly layout considering stopping lay bays,
overtaking lanes, access and egress, etc.
3) Taxi Vehicle Fleet including aspects such as:
Fleet configuration (Compact - Sedan - Van - Ladies Taxis)
Seating spaces and layout
Luggage Spacing
Used energy power (Diesel/CNG/Hybrid/Electric)
Passenger in-vehicle comfort and amenities
Allowance for level boarding serving mobility handicapped and other pas-
sengers
Allowing bikes on board in luggage space or special back bike carriers
4) Taxi Infrastructure Supporting Facilities such as signs and markings
5) Taxi Fleet Supporting Facilities, Units & Services including fleet mainten-
ance, fueling facilities, meter calibration facilities
6) Taxi Fare including determination of Fare Policy and Structure as well as
Fare Collection System (varying from traditional cash pay-on-board methods
to cashless payments using bank card payment as well as pre-paid payment
with electronic fare media e.g. smart NOL cards).
7) Taxi Marketing/Branding/Imaging of Fleet/Drivers/Stations/Infrastructure
including:
Premium Service
Driver Appearance, Behaviour and Character
In and out vehicle appearance, logo & colour—In and out vehicle cleanliness
Vehicle amenities (Wi-Fi—Phone Charging Sockets, News Reporting, TV
Radio)
Stations, stops, shelters, benches
8) Taxi ITS
Traffic Signal Prioritization
Driver Assist and Monitoring Technology
Operations Management Technology
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Figure 2. A classification of core activities, components & enablers of taxi sector in Dubai.
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of many taxi sectors in the world including Dubai. These can be classified as fol-
lows:
Core Activities (planning & services design - procurement & decommission-
ing - operation & maintenance monitoring & governance - quality health safety
security and environment).
Components (infrastructure - depots and taxi ranks - fleet - supporting facili-
ties - ITS & dispatch centers - taxi services, fare policy and structure, marketing,
branding and imaging).
Enablers (organisational structure & roles and responsibilities - strategies,
policies, standards, manuals, regulations - human resources & work environ-
ment - investments).
The figure also shows that at the center of all of these core activities, compo-
nents and enablers are the strategic goals of increasing ridership, customer satis-
faction/happiness and financial profitability and sustainability.
Street Hail Taxis - Airport Taxis - Hala Taxis via Booking - Ladies Taxis - Special
Service Types
Needs Taxis - Premium Taxis
Payment Options Cash - Cashless via Bank Cards - Pre-paid via NOL Cards
Taxi Fare Structure See Figure 3 (Official Taxi Dashboard Passenger Fare Information)
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Figure 3. In vehicle taxi sticker showing taxi fare structure, source: see [5].
components showing that the fleet size in Dubai is 9613 taxis with a taxi availa-
bility ratio of 3.71 per 1000 population. Additionally the table shows the differ-
ent offered service types including ladies taxis which are one of the first in the
world taking into consideration gender specific requirements as well as taxi on
demand labelled Hala. Taxis in Dubai are operated via 6 companies. An inter-
esting indicator shown in Table 1 is that taxis in Dubai roam half of their opera-
tion time and the other half they have riding customers. Taxis travel daily almost
500 km 250 vacant and 250 with passengers. License franchise duration is 3 years
and recently extended to 5 years and average occupancy is around 1.74 passen-
gers per taxi trip. There are several methods to pay taxi fare some are part of the
integrated public transport fare policy in Dubai known as NOL. The fare starts
by 5 AED (1.4 USD) with a minimum journey fare of 12 AED (3.3 USD).
Additionally, a KPI assessment was conducted based on the latest data availa-
ble in [6], see Table 2.
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6 companies 1 semi-public (Taxi Dubai owned by RTA) & 5 private - Taxi Dubai is dominating the
Ownership
market with a market share in terms of fleet size around 45%
A Taxi Requirement 5 Year Plan 2016-2020 was Endorsed allowing the taxi fleet to reach 12,765 by 2020
Market Size - 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
Regulated by RTA (Only 6 Companies are currently allowed to provide taxi services)—Market exit rules
Market Entry/Exit
should be developed
Decided by planner/regulator to insure a balance between taxi companies profitability and customer
Fare Determination
satisfaction
Regulation Exercised by PTA which is an RTA government agency. This presents a partial conflict of interest
Moderate (Encouraging rather than discouraging and maintaining a balance between companies
Regulatory Regime
financial sustainability and customer satisfaction/happiness)
Market Size - Entry to market - Quality and Age of Vehicles - KPIs including safety customer
Regulatory Aspects
satisfaction, driver and operation standards, etc.
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
Market Competition/ Monopoly 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.
Goals Main goals are Financial Viability, Sustainability & Customer Satisfaction/Happiness
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Continued
Accountability High
Environmental Considerations Tendency to encourage environment friendly fleet such as Hybrid Taxis
Figure 4. Comparison of taxi supply among selected European cities, source see [8].
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The vision for the taxi sector in Dubai can be contemplated as follows:
“Achieving one of the safest, green, best performing, reliable, customer-focused
and sustainable taxi systems in the world that offer commercially viable, high
quality and value for money services”.
The mission statement for taxi sector in Dubai can be also proposed and
stated as follows: “Complementing the mobility options in Dubai by ensuring
adequate provision (at the right place and the right time with the right price and
the right quality) management, operation and maintenance of various taxi ser-
vices to meet and exceed expected taxi demand with levels of service instigating
customer satisfaction and further customer happiness. This should be done in an
integrated, efficient, safe and secure manner taking into consideration minimis-
ing disruption to the environment and saving energy, hence attaining a sustain-
able taxi system that is customer focused.”
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• Develop and implement an education campaign for the general public to en-
hance respect for front-line taxi workers.
• Prepare a promotional branding and image plan including drivers and their
role in providing the service.
• Launch promotional campaigns with the beginning of the school year to
promote taxi services for school and university students.
• Launch a promotional campaign to encourage the use of taxis for several
chained trips.
• Launch marketing campaigns with Banks and Brand Shops customers offer-
ing good value for money discounts and promotional packages for compa-
nies, associations, government enterprises and individuals.
7) Planning & Service Design
• Adopting the notion of intermodality and plan for the integration of taxi ser-
vices with other public and private modes so as to maximize the efficiency of
utilization.
• Consider new franchise business models for taxi companies including possi-
ble changes in contract duration, monthly fees, license plate, etc.
• Establishing processes for effective participation of taxi users in making deci-
sions on the planning and management of the taxi sector in Dubai.
• Developing continuous education, mass media and information campaigns
to set the right scene for public acceptability and support for the taxi sector in
Dubai.
• Developing a comprehensive and continuous data collection programs cov-
ering all aspects of the taxi system – thus developing a data base and Infor-
mation Management System leading to a Decision Support System.
8) Procurement/Decommissioning
• Continue to grow the taxi fleet in Dubai to achieve and sustain the target taxi
availability index of 4.09 taxis/1000 capita.
• Contemplate to remove/loosen taxi supply restrictions as an increasing
number of countries have removed or loosened supply restrictions on tax-
is—this resulted in reduced waiting times, increased customer satisfaction
and falling taxi prices being observed.
9) Operation & Maintenance
• Taxi Fleet to be provided with updated road and buildings address maps &
drivers to be trained on how to use such mapping system.
• Taxi Meters to be linked to bank card payment network to allow cashless
payments by customers using bank cards or prepaid NOL cards.
• Drivers’ shift change periods to be staggered with peak traffic periods.
• Reconsider the drivers’ incentive policy that relies on number of trips as it
discourages drivers from accepting long journeys (incentives to be related to
revenue-kilometers rather than to number of trips).
10) Legislation Monitoring & Governance (Enforcement)
• Reconsider the KPI system used to monitor and regulate taxi companies.
• Ensure the appropriate regulation of smart transport booking companies
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9. Conclusions
The taxi sector in Dubai has gone through several stages before reaching the
current stage of maturity which can be characterized by market size stability,
profitability of taxi companies and overall customer satisfaction. This research
was meant to provide a system analysis and structured assessment of the taxi
sector in Dubai with the objective of identifying strengths and gaps and hence
developing a comprehensive taxi strategy in Dubai that is centred and focused
on customer happiness. This is expected to provide an added value and benefit
to the strategic and business planning role for PTA as well as for the overall
business and futuristic planning role by RTA.
The research started by developing a conceptualisation of taxi system compo-
nents & stakeholders where 8 components were identified as well as 5 main
stakeholders. Additionally a classification of core activities, components and
enablers of taxi sector in Dubai was developed. The research conducted a de-
scription of the taxi sector characteristics and the KPI system in Dubai followed
by multicriteria semantic assessment of the taxi sector in Dubai using 30 criteri-
ons. Additionally international benchmarking in terms of taxi provision in cities
was reviewed where Dubai is currently at 3.71 taxis per 1000 population which is
above the worldwide average of 3. Also Dubai is targeting an availability index of
4.09 taxis per 10,000 capita by 2020.
Developing and implementing a well thought strategy for the Taxi Sector in
Dubai is detrimental to achieving the main strategic goals of customer happi-
ness, financial sustainability and mobility provision. The research concluded by
developing a comprehensive taxi strategy for Dubai taking into consideration to
overcome any gaps and to attain future aspirations of achieving customer hap-
piness. The strategy identified changes affecting the taxi sector in Dubai, decid-
ing on acceptable values, determining the vision, mission statement as well as
the strategic goals for the Taxi Sector in Dubai. The strategy concluded by iden-
tifying a continuum of 101 recommended policies, measures & initiatives that
can be followed to attain the preset strategic goals. These are classified in accor-
dance with the core activities, components & enablers of taxi sector in Dubai.
Acknowledgements
The authors would like to acknowledge the support and encouragement pro-
vided by the RTA leadership HE Mr. Mattar Al Tayer as well as the contribution
of all RTA committees, teams, forums and stakeholders involved in the taxi sec-
tor in Dubai.
References
[1] International Road Transport Union (IRU) (2013) Taxi AnyTime! AnyWhere!
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