COMPENSATION PACKAGE FOR TAXI OWNERS
Abu Dhabi’s Taxi Transport Regulation Centre has today released new research data which reveals the sophisticated methodology behind the compensation package for existing taxi owners.
Under the plans to bring a 21st Century taxi service to the emirate, existing taxi licence owners will benefit from AED 1,000 per month for each taxi licence surrendered. The findings from empirical research published today reveals accurate data about the average earnings and costs incurred by taxi owners.
The average monthly revenue for a taxi in Abu Dhabi is between AED 4,000-5,000. Operating costs alone reduce this figure by almost 50 per cent, with the average monthly operating cost per taxi ranging between AED 2,000-2,500.
Of the remaining 50 per cent revenue after expenses, the driver takes an average monthly salary of approx AED 1,000. The average taxi licence owner in Abu Dhabi receives a net profit of approx AED 1,200 per month. In Al Ain, the average take-home profit is AED 1,000 per month per taxi.
Commenting on the compensation package, Khaled Al Rashedi, General Manager, Abu Dhabi Taxi Transport Regulation Centre says: “As a regulator, it is important that we are seen to be fair and transparent as we build a high quality, safe and cost-effective taxi transport system. We have based our compensation package for taxi licence owners on detailed research that reflects the average earnings of the majority of licence owners in Abu Dhabi and Al Ain. The prospect of a fair and guaranteed income offers peace of mind for many taxi licence owners across the Emirate.”
Abu Dhabi’s Taxi Transport Regulation Centre will establish and regulate a special fund named ”Compensation Fund for taxi license owners” in an alliance with a leading Abu Dhabi financial institution that will set-up and administer the fund and the monthly payments to all licence owners.
For more information about the compensation package, please call the Abu Dhabi Taxi Centre hotline on 600 56 0006.
According to the research:
o Costs are a combination of fixed and variable elements that include fuel, depreciation, car maintenance, dept payment, vehicle insurance and driver salary.
o Research considers taxis to be operational for 27 days a month.
o Taxis run for an approx average of 4,050 km per month
o Taxis make approx 1,350 trips per month
o Variable cost is approx AED 1,215 per month
o Fixed costs per month is AED 280 approx
o Driver salary is average AED 1,000 per month approx
o Average monthly depreciation or debt payment is AED 750 per month approx
o Fuel costs per month – AED 750 approx