SANTACO latest news in South Africa

A taxi commuters Belle Ombre taxi rank in Pretoria on 1June 2020 in Pretoria asSouth Africa officially entered level 3 of the lockdown. Photo by Gallo Images/Alet Pretorius

Taxis make up the bulk of all public transport in SA

Putting aside the horror stories usually associated with the taxi industry, the sector has been acknowledged as the ultimate choice of transport for South Africans and the thousands of jobs it creates

SANTACO latest news in South Africa

A taxi commuters Belle Ombre taxi rank in Pretoria on 1June 2020 in Pretoria asSouth Africa officially entered level 3 of the lockdown. Photo by Gallo Images/Alet Pretorius

The taxi industry has been at pains to explain its role in the country’s public transport system and the greater economic chain, in the wake of a tussle between the sector and government over a R1 billion relief package.

The offer was branded a slap in the face by the sector, which has demanded R20 000 per vehicle while the package equates to R5 000, prompting a taxi shutdown on Monday, 22 June 2020.

The industry’s demand for more money was motivated chiefly by the fact that it’s a primary preference for many South Africans who depend on public transport to get around.

“This is due to the widespread availability, frequency and range of their service, and its affordability when compared to other forms of public transport”, said CTU, an insurance provider for commuter taxi and bus industries.

Dominance in the local transport sector

According to Arrive Alive, 90% of the local taxi scene is attributed to minibus taxis, while metered taxis account for the remaining 10%.

“Furthermore, minibus taxis represent a massive 65% of the total local public transportation needs, while busses account for 20% and train services for a minimal 15%.  E-hailing has also grown in popularity with South African consumers, with data analytics firm Research and Markets stating that Uber uses more than 13,000 drivers and has over a million riders (customers), while other players such as Bolt are also actively operating in this competitive local sector”, CTU also said.

Job Creation

The minibus taxi industry is also credited with creating approximately 200 000 jobs and brings in a reported R90 billion annually.

Under the current lockdown regulations, minibus taxis must not load vehicles with more than 70% of their maximum licensed passenger carrying capacity. Passengers and drivers are also supposed to make use of social distancing rules and apply the proposed health measures, including sanitising their hands and wearing facemasks.

The sector has undoubtedly become one of the casualties from the coronavirus and suffered massive revenue losses as a result of the COVID-19 lockdown, as people were forced to stay indoors and many businesses had to temporarily close shop as they were considered non-essential service providers.