Taxi industry urged to tap into R26bn e-hailing market as competition grows
A transport specialist says South Africa’s minibus taxi industry risks missing out on the R26bn e-hailing market unless operators diversify and modernise.
South African minibus taxi operators could be missing out on a lucrative R26 billion e-hailing market, according to a transport specialist. At a recent discussion in uMhlanga, Vuyi Majola, head of integrated public transport networks at CityCon Africa, urged taxi owners to diversify into smaller vehicles and explore e-hailing platforms to compete in the evolving passenger transport industry.
The e-hailing market, estimated at R26 billion annually, features around 70,000 vehicles with a 17% compound annual growth rate. While taxis typically operate on fixed routes, e-hailing offers door-to-door transport and connectivity to transit hubs. Majola questioned why taxi owners weren't investing in smaller vehicles and pooling resources to strengthen their position when seeking loans, as this potential revenue had become a source of resentment among operators who felt passengers were being diverted away.
Despite facing pressure to modernize, Prasa's CEO Hishaam Emeran denied Prasa was stealing passengers, emphasizing that intercity buses have operated for decades without competition from taxis. Emeran said Prasa was modernizing long-distance bus services and aimed to integrate public transport, including discussions with Santaco.
However, industry leaders acknowledged that the transformation process has been hindered by the Covid-19 pandemic, floods, and job losses, which have reduced passengers' ability to afford taxi trips and damaged infrastructure.
Written by urgent.news from IOL's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
