City’s taxi stance is anti-competitive

THE continuing strike by MyCiTi drivers highlights the critical role played by the minibus taxi. Commuters have an alternative. But if the City of Cape Town had its way, that alternative would disappear.

When the first MyCiTi route, from Table View to the CBD, was being planned in 2011, the City made it clear that taxis on the route would be replaced by buses.

It offered taxi owners a shareholding in the bus companies that would operate the new service.

Many taxi owners rejected this. Some were “bought off” by the offer of a lump sum payment, in return for which they would give up their taxis and their operating licences.

Others, however, rejected the package, and opted to continue providing services to commuters on the route.

The City reluctantly accepted this, but said that when an operating licence expired, they would object to its renewal.

This is now happening. Members of my Maitland-based taxi association are facing the threat of losing their livelihood, and also – and more importantly for the life of the City – the commuters will no longer be able to use the service that they prefer.

We have tried to negotiate with the City’s Transport and Urban Development Authority, but they simply will not listen to us.

As a result, we have had to present our case to the Competition Commission. We hope that the commission will come to the conclusion that the actions of the City are anti-competitive.

In the meantime, the Cape Town taxi industry will continue to provide an effective (and unsubsidised) public transport service to residents.

We thank you.