Page 24 - drive a2b march 2020 web

The SA Competition Commission has

proposed changes to level the playing

field and allow metered taxis to better

compete with Uber, Bolt, and other

e-hailing companies.

by Helena Wasserman | Business Insider SA

South African metered taxis could get a boost against Uber from proposed new rules.

• The Competition Commission wants an overhaul of the metered taxi licencing and fare regime
in South Africa, which it thinks will increase competition.

• Metered taxis argue that Uber's prices are too low and threaten their survival.
• Between 35% and 55% of Uber drivers are operating without a valid licence.

• The commission recommends that fare regulations be scrapped, and that all metered taxi
companies be allowed to do business wherever they want.

The commission launched an inquiry in 2017 amid industry concerns about the impact of the
meteoric rise of Uber. Metered taxi operators argue that Uber’s prices are too low, and threaten
their survival.
The commission confirmed in a report, released last month, that Uber is much cheaper than
metered taxis – which on shorter routes can cost up to 250% more in Gauteng.

The metered taxi operators also contend that Uber is operating outside of the regulations that
govern them. Government is currently developing laws to specifically regulate electronic hailing.

The Competition Commission notes that Uber is not governed by labour laws in its relationship
with drivers using its platform – and the negative impact this has on those drivers.

24 DRIVE A2B magazine · February 2020