Fares in the transport industry to be probed
Focus on factors that lessen competition
The Competition Commission has launched a probe into all modes of public passenger transport, including the taxi industry, minibuses, Uber, buses, trains and the Gautrain.
The commission said it had received 10 complaints of anticompetitive conduct in the public passenger transport industry. The probe was launched last week.
According to the commission, fares paid by passengers of app-based services such as Uber are set by independent companies themselves and not by the Department of Transport, as required by law.
“Uber operators charge prices set by Uber and minibus taxis charge prices set by the respective taxi associations,” the commission said, adding that this had been found during a probe following a complaint.
“It became apparent to the commission that prices are set differently and by different stakeholders within the landbased public passenger transport industry.
“For example, prices charged by metered taxis are set by the Department of Transport while those of competing modes of transport such as Uber and minibus taxis are set by the respective stakeholders outside the department.”
The commission will examine features in the industry that lessen, prevent and distort competition.
The market inquiry is an attempt to “understand the general state of competition in the land public passenger transport industry”.
National Taxi Association spokesman Theo Malele said while they were unaware of the inquiry they hoped it would correct certain anomalies.
He said these included the fact that the industry transporting the majority of passengers in the country does not get benefits enjoyed by “minority” sectors.
The commission says between 70% and 80% of South Africans are dependent on public passenger transport for their mob ility, with the majori- ty reliant on the various types of taxis.
The proportion of households that own a vehicle in South Africa is only 29.8%, resulting in the majority of the population being dependent on public passenger transport, according to the commission.
Malele said the state of taxi industry facilities and government subsidies was among the complaints they have made.
“Why can’t we have police stations or crèches, for example, around taxi ranks so that parents don’t go around every morning dropping off their children before going to the taxi rank?” he asked.
The commission’s previous investigations have also revealed that some commuter buses receive operational subsidies while others do not and that metered taxis are price regulated by the department, while Uber is not.
‘‘Prices are set differently by different stakeholders