South Africa’s e-hailing sector has evolved from a convenient transport alternative into a significant contributor to the country’s digital economy, creating hundreds of thousands of income-generating opportunities.
This, as the country continues to battle one of the world’s highest unemployment rates.
Executives from three of SA’s largest e-hailing platforms – Uber, inDrive and Bolt − tell ITWeb that ride-hailing platforms have become an important source of flexible work for South Africans who might otherwise struggle to find employment.
Despite many challenges plaguing the sector, over the past decade, it has seen growing consumer demand and increasing participation in the gig economy. The e-hailing industry now supports a broader ecosystem of businesses, ranging from vehicle financiers and insurers, to fuel retailers and township enterprises, they say.
The most visible impact is its role in creating hundreds of thousands of earning opportunities for drivers, couriers and small business operators.
According to Sbu Ngwane, senior GM at Bolt South Africa, Bolt has on-boarded more than 500 000 driver partners since entering SA a decade ago, highlighting the scale at which digital platforms have enabled participation in the gig economy.
“Bolt has helped expand access to flexible gig work opportunities by enabling South Africans to participate in the growing platform economy. For many driver partners, ride-hailing provides an important source of income, whether as a primary earning activity, or as a way to supplement existing income streams.
“The flexibility offered by the platform allows individuals to generate earnings on terms that suit their personal circumstances. This demonstrates the role gig work can play in expanding access to earning opportunities.”
Uber, meanwhile, says it has enabled more than one million flexible economic opportunities in SA through its mobility and delivery platforms.
Deepesh Thomas, director and GM for Sub-Saharan Africa and Morocco at Uber, says the platform economy is increasingly filling gaps left by traditional employment channels.
“We have injected R17 billion into the local economy and enabled over one million flexible economic opportunities, with drivers earning on average 57% more than their next best alternative,” notes Thomas.
“In an environment where traditional employment pathways are insufficient to absorb demand and youth unemployment remains structurally high, platform-enabled work has become a critical access point to income, flexibility and entrepreneurship for individuals who were previously unemployed or underemployed.”
Uber’s investment aims to have a multiplicative effect, lowering barriers to entry through fuel support, vehicle financing models with vehicle suppliers, and innovation in last-mile delivery, he adds.
Many drivers operate across multiple e-hailing platforms simultaneously, switching between apps such as Uber, Bolt, inDrive and others, to maximise earning opportunities.
For inDrive, which operates in more than 16 metropolitan areas and a growing number of townships and secondary cities, affordability and low platform fees have become key drivers of participation in the digital economy.
Ashif Black, country representative for inDrive South Africa, says the company is seeing increasing numbers of people use ride-hailing as either a primary or supplementary source of income.
“inDrive has created a low-barrier entry point into the digital economy by enabling thousands of South Africans to earn income through ride-hailing. We observe that, based on the hours drivers operate on the platform, many of them are individuals who are currently unemployed, underemployed, or actively seeking additional income to support their households,” explains Black.
Beyond drivers, the broader ecosystem also generates meaningful economic activity.
“This includes vehicle owners, fleet operators, mechanics, fuel stations, vehicle finance providers, insurers and other small businesses that indirectly benefit from increased demand and activity driven by ride-hailing services,” he adds.
GDP injection
While none of the operators provided formal GDP contribution figures, all three point to the expanding economic footprint of ride-hailing in SA.
The sector’s impact stretches well beyond the drivers using the platforms. Every trip generates activity across multiple industries, including vehicle financing, insurance, fuel sales, maintenance services, telecommunications and fleet management, they say.
Bolt argues that the scale of activity generated through its platform demonstrates the growing importance of digital mobility services within the broader economy.
Ngwane states: “While Bolt does not publicly disclose GDP contribution figures, the company has invested R3 billion in South Africa over the past decade, reflecting its long-term commitment to the market and confidence in the country’s growth potential. Over the same period, 30 million passengers have used the Bolt platform at least once, while more than 500 000 driver operators have on-boarded onto the platform.”
Uber says its impact extends beyond transportation, with the company estimating it has contributed R394 million in additional value to SA’s night-time economy. It recently announced plans to invest a further R5 billion to expand its local operations, including its courier service.
A study conducted by research firm Ipsos, commissioned by Bolt South Africa, estimates SA’s gig economy to be worth over $5 billion (about R90 billion), with between 1.8 million and two million participants, accounting for up to 7.9% of the labour force.
According to the study, 70% of South African gig workers turn to ride-hailing for flexible earning opportunities – as a secondary income – while the other 30% depend on it as their primary livelihood.
According to the e-hailers, the sector’s growth trajectory is far from over. All three operators report sustained demand for e-hailing services, driven by changing consumer behaviour, urbanisation and growing concerns around safety and convenience.
Uber points to broader spending trends that indicate ride-hailing is becoming embedded in daily life.
Fulfilling a need
“We are seeing a significant shift in consumer behaviour, with ride-hailing becoming a core solution for urban routines, social occasions and time-pressured lifestyles. This is supported by the 2026 Discovery Bank and Visa SpendTrend Report, which highlights that ride-hailing usage in South Africa is increasing faster than traditional fuel spend, particularly among younger consumers,” Thomas points out.
“Looking ahead, our future growth is tied to sustainable innovation, specifically the expansion of our green initiatives, such as the rollout of electric vehicles and motorbike services to provide affordable connectivity in underserved areas.”
Meanwhile, inDrive says demand for e-hailing is increasingly coming from townships and secondary cities where public transport options may be limited.
The trend suggests that future expansion may not be concentrated solely in major metros, such as Johannesburg, Cape Town and Durban, but increasingly in underserved communities where digital mobility platforms are becoming part of the transport landscape.
“The fact that 30 million passengers have used the platform in SA over the past decade reflects the growing demand for app-based mobility services and the important role they play in everyday transportation,” asserts Ngwane.
As demand continues to grow, so too does the opportunity for more South Africans to participate in the gig economy and generate income through flexible earning models, he continues.
Industry issues
Despite its economic contribution, the e-hailing sector continues to grapple with significant challenges.
The last few years have seen drivers and operators of Uber, Bolt and InDrive hold nationwide protests, urging government to speed up the process of regulating the e-hailing industry, to minimise what they call “atrocious working conditions” and “unfair wages”.
Other concerns included safety and security issues, with incidents of violence and crime involving drivers, passengers and criminals periodically making headlines.
Operators have invested heavily in safety technologies, including panic buttons, real-time tracking, identity verification systems and partnerships with security providers.
However, executives argue that technology alone cannot solve the problem. They highlight regulatory uncertainty as another major concern.
These include delays in licensing processes, inconsistent rules between municipalities and provinces, and the absence of a fully-aligned national framework governing ride-hailing services.
Thomas says licensing reform would have the biggest impact on future growth.
“To maximise our ability to expand access to opportunity, we advocate for clear, forward-looking regulations that recognise the unique nature of the platform economy. Efficient, digitised and consistent licensing processes across provinces are the single most important factor that would unlock further opportunities for drivers and small operators,” he stresses.
Ngwane believes collaboration will be essential to addressing issues such as infrastructure limitations, which also continue to affect operations.
Other problems include congested roads, poor road maintenance and the lack of dedicated pick-up and drop-off zones at transport hubs, creating inefficiencies for both drivers and passengers.
“South Africa is an important market with significant growth potential, but it also presents a unique operating environment. Key challenges include public safety concerns, regulatory complexity, infrastructure constraints, traffic congestion and broader economic pressures affecting both riders and driver operators.
“Addressing these challenges requires continued collaboration between industry, government, law enforcement and other stakeholders to create a safer, more efficient and more inclusive mobility ecosystem,” according to Ngwane.
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