E-hailing has transformed urban mobility in South Africa with 21.1% of the population now using these transportation alternatives. Fuelled by influences such as evolving customer preferences, unique local conditions, and underlying macroeconomic factors, the industry is gearing up for further growth.
By 2028, it's projected to reach a value of US$387.70 million (approximately R7,123.50 billion) and serve a user base of an estimated 14.38 million. However, to unlock its full potential, the industry must address present challenges while simultaneously capitalising on growth opportunities.
This is according to Vincent Lilane, Business Development Representative at inDrive, who highlights that doing so could maximise the ride-sharing industry’s job creation and GDP contributions, benefiting both South Africa and its people.
Fair pricing for all
Shedding light on a critical challenge for the ride-sharing industry, he shares that achieving fair pricing for both drivers and passengers is essential.
The sad reality is that South African drivers tend to earn less than minimum wage. This is because their earnings are eroded by rising fuel prices, vehicle rental fees, the elimination of incentives and bonuses and increased commissions for each transaction.
Longer hours are often the only way to compensate, impacting driver well-being and potentially compromising safety. While it is hoped that the recently enacted Economic Regulation of Transport Act will positively impact their earnings, drivers must be given more control over pricing. This, in turn, will empower them to achieve sustainable incomes and economic stability.”
Lilane further emphasises that driver control over pricing could also benefit passengers. “This would allow them to access more competitive fares, a critical factor during the current cost-of-living crisis where affordable transportation is a major concern.”
Beyond advocating for driver control over pricing, he urges the ride-hailing industry to reintroduce and expand incentive programmes and bonuses as a way to reward drivers, especially with 85% reporting that these are essential for their earnings.
Remember, drivers are the lifeblood of this industry, and their well-being directly impacts its success.
Passengers, drivers and platforms must partner for safety
“The rapid growth of ride-hailing in South Africa has coincided with a concerning rise in threats to the safety of both drivers and riders across all operators in this space, tarnishing the reputation of the entire industry as a result,” notes Lilane.
Unfortunately, this isn't unique to South Africa, as similar incidents are reported globally.
He acknowledges safety challenges in the industry, including insufficient driver background checks, lax enforcement of vehicle maintenance, and passenger harassment of drivers. However, he underscores the importance of a shared responsibility approach.
inDrive, for example, promotes respect between passengers and drivers with a zero-tolerance policy for discrimination. Additionally, the platform offers in-app support for both parties to address any violations promptly. Collaborative efforts like these can significantly contribute to a safer and more secure ride-hailing experience.”
New frontiers for e-hailing
“Beyond passenger transport, there are a number of opportunities for the broader adaption and expansion of e-hailing in South Africa,” points out Lilane.
“Currently, the freight and cargo market, particularly in remote areas, faces significant gaps. E-hailing platforms can leverage their technology and established networks to fill this void and connect businesses and individuals with reliable cargo transportation solutions.
This could not only create new income avenues for drivers, but also contribute to a more streamlined and accessible logistics network across South Africa.
“By empowering drivers, prioritising safety, and embracing new possibilities, the e-hailing industry could serve as the driving force in shaping a transportation ecosystem that benefits all South Africans – passengers, drivers, and businesses alike,” he concludes.
