THE STATE OF LOCAL TAXI AFFAIRS

Minibus taxis in South Africa are as prevalent as braais and beadwork. They’re so much a part of the landscape that the legendary Brenda Fassie immortalised them in a smash hit, Zola Budd. Yet, their present reality is a little less rosy

Between rule-breaking on the road, violent infighting and the new threat of e-hailing companies, we need to ask the question: “Does the taxi industry have what it takes to safely transport the millions of customers who rely on it daily to get to work, as well as restructure the industry enough to fight off the competition?”

PUBLIC TRANSPORT

If you’re a South African with no car, it’s highly likely that you’ve spent a lot of time squeezed into the seat of a taxi as you

navigate your daily life. These rides range from comfortable to perilous, but the reason why the industry is still thriving is because they offer a fairly inexpensive way of getting from one point to another. They’re not always safe but with no other options until recently, passengers have been forced to grin and bear it.

Given the growing popularity of e-hailing services such as Uber, Bolt (formerly known as Taxify) and a few local competitors, it’s clear that the industry is facing stiff competition and will need a lot of work to iron out their internal problems, and to rethink their business model, to stay relevant in the current market. Let’s face it: the public transport system in South Africa is in a state of crisis. This ranges from commuter trains being constantly vandalised and as a result often running late, to lack of profit from heavily subsidised Bus Rapid Transit systems, and taxis living up to the negative anecdotes that include flouting the rules of the road, overcrowding and violence in disputes over routes. There’s a direct link between the state of public transport and the performance of the economy. The national government is aware of the ways in which an efficient public transport system could

contribute to socio-economic development that will then lead to job creation and improved access to markets. At a 2016 conference about Southern African Transport, Clement Manyungwana from the Department of Transport stated, “We need our public transport to play a role in creating an economy that’s efficient and effective, that reduces poverty and addresses environmental challenges.”

Academic research supports this theory. In a 2017 study by Ronald Aropet from the Department of Civil Engineering, University of Pretoria, entitled Southern African solutions to public transport challenges”, he stated that the provision of a safe, accessible and affordable public transport infrastructure is a vital requirement for the socio-economic development of the South African population. He continued that it also holds the potential to provide for decent wages and working conditions for the sector’s employees, as well as for those sectors that depend on it for the demand of their output.

E-HAILING SERVICES ARE A FORCE ON THE ROADS

Currently the biggest competition to minibus taxis looks to come from e-hailing companies. Uber originally launched in America to disrupt the metered taxi industry in 2010. At present it operates in 65 countries and over 600 cities worldwide carrying 75 million riders. While the company has certainly shaken the market, it has not done so without some resistance. Cities such as Washington, DC, and Chicago have passed laws hiking taxes and fees on e-hailing vehicles, with the money going to public transit. San Francisco has attempted to track how the companies have contributed to the city’s critical traffic problem in an attempt to convince the state of California to do something about it. A report by Bruce Schaller, an expert in new mobility and for-hire services, public transit and urban traffic, claimed that these services made traffic congestion in New York City worse.

In response, city lawmakers enacted a firstof-its -kind cap on the number of cars driving for ride-hail companies in the city. Uber, knowing that New York is one of its most profitable cities, sued to make it disappear and the two have been in litigation ever since. In spite of the ongoing court battles the number of for-hire vehicles including

black cars, yellow cabs and e-hailing vehicles licensed to operate in New York City went up by 60% since 2016, bringing the total to nearly 106 000 cars. Locally, in Cape Town, e-hailing services Uber and Bolt are popular with locals and tourists. Ever since they introduced cash payments, though, there have been increased robberies and attempted hijackings of drivers in townships, making them reluctant to accept trips to there, especially after dark. A more pressing problem is the city’s slowness in issuing permits to the estimated 7 000 drivers operating on the roads. This has led to cars being impounded and only released after hefty fines. Clearly this is a sign that there’s a need for more regulation on how these services operate. Sipho Ngwema, head of Communications for Competition Commission of South Africa, says this is underway. “The Commission is currently conducting a Market Inquiry into public transport which includes e-hailing. We intend to issue preliminary findings in due course.”

DURBAN’S NEW KID ON THE BLOCK

In Durban, certain taxi owners decided that the best way to beat the competition was to join them. As a result, taxi operators from 12 of Durban’s associations have launched their own e-hailing company called YoTaxi. The company has met with resistance from Uber and Bolt, who claim their drivers are being intimidated into joining the service or losing access to the road. Given the history of taxi violence in the province, this is not an idle threat. “Taxi-related incidents of violence in KZN are showing no sign of abating, with associations engaged in shoot-outs over control of lucrative routes.

Large parts of the industry in KZN have begun to look very mafia-like, where you defend and expand your business turf through the use of violence.” This is according to Dr Londeka Ngubane, lecturer in Discipline of Criminology and Forensic Studies at the University of KwaZulu-Natal. She adds that there’s an increase of illegal e-hailing operations such as where e-hailing drivers operate without permission, and where some e-hailing operators are now providing commuter/minibustaxi type services. But, it’s been noted that their licence conditions don’t allow them to operate at municipal ranks, and this seems to be a bone of contention. “Until these two issues are solved, I don’t foresee a scenario in SA where these two transport service companies can co-exist in unity and peace.”

The bottom line seems to be that there’s a space where the taxi industry can continue to be a people carrier, but will need a massive shift in the way they do business, as well as agreeing to co-exist with e-hailing companies. All this can be done through good governance, enforcement of law and the will from both sides to make money while putting commuters first. It will not be an easy road but the journey will be worth it in the end, for all the stakeholders involved.