South Africa’s ride-hailing economy is increasingly functioning as a financial safety net for workers navigating a constrained labour market.
A growing number of people are relying on the sector to supplement – rather than replace – traditional income streams.
This is according to a gig economy research report conducted by research firm Ipsos, commissioned by e-hailing firm Bolt South Africa.
The report provides insight into how digital platforms are reshaping livelihoods, with many South Africans turning to ride-hailing as a source of income, as well as a pathway into entrepreneurship, in the face of the country’s high unemployment rate.
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.
Gig work in SA is not a standalone income source, it notes. Instead, many workers piece together earnings from different jobs to stay financially stable by using ride-hailing and other platforms as one part of a broader mix of income streams.
Gig work is defined in the report as flexible, short-term freelance-based income-generating activities enabled through digital platforms.
This can include driving, delivering, or freelancing – instead of working in a traditional full-time role.
The report positions ride-hailing platforms as “informal economic stabilisers” − particularly in a labour market with high unemployment and limited formal job creation.
Simo Kalajdzic, senior operations manager at Bolt SA, says: “In South Africa’s current economic climate, ride-hailing is no longer just about mobility, it’s about opportunity.
“Many drivers are using gig economy platforms to build income streams, support their households and take control of their financial futures. What we are seeing is the rise of everyday entrepreneurship, where individuals are creating flexible, self-directed livelihoods on their own terms.”
The study 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.
Bolt South Africa previously said it had over 40 000 drivers on its platform as of 2025, while Uber told ITWeb it had around 100 000 independent contractors on its platform, including delivery couriers. InDrive, according to Business Day, had roughly 45 000 registered drivers in the country, as of 2023.
Many drivers use multiple e-hailing apps.
The report notes that as digital platforms continue to expand, their role is evolving beyond mobility.
“Ride-hailing is increasingly positioned as an entry point into the broader digital economy, enabling financial inclusion through mobile payments, access to credit and participation in formalised systems,” it says.
To conduct this study, 250 local drivers were surveyed and Ipsos adopted a mixed-methods research design to produce statistical and contextual insights into the gig economy across several African markets.
Not a first preference
According to Stats SA, in the fourth quarter of 2025, the total number of unemployed youth (15 to 34 years of age) in SA decreased by 84 000 to reach 4.6 million (43.8%) compared with Q3 2025.
The Ipsos study reveals that, for many South Africans, gig work is not a preferred long-term career path, but rather a necessity, driven by limited employment opportunities.
The report notes that participation in the local e-hailing industry is a “practical response to high unemployment, rather than a stable or aspirational form of employment, particularly among youth”.
One of the contributing factors is the key issue of unstable wages. According to the research, gig work, particularly ride-hailing, does not guarantee stable earnings as income depends on the number of rider requests received by drivers.
“Drivers face fluctuating demand and inconsistent daily income, which can make financial planning difficult. Even where earnings fluctuate, workers rely on the ability to generate cash flow, implicitly acknowledging the lack of predictable income,” it says.
Cost pressures, as a result of rising fuel prices and ongoing vehicle maintenance, directly eat into driver earnings, limiting the viability of ride-hailing as a sole income source.
“This is reflected in cross-country insights, where some drivers indicate that operational costs make it difficult to depend entirely on platform income.”
The past 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”.
Bolt drivers are charged 20% commission, with an additional 5% booking fee deducted from each trip. Uber takes a 25% commission, with a booking fee of 3%.
The report also highlights signs of structural vulnerability within the sector. The gig economy operates largely outside traditional employment protections, with much uncertainty around worker rights, benefits and long-term security.
Since inception, the industry has been tainted by incidents of violent attacks, with drivers being subjected to increasing incidences of crime, at the hands of criminals and rival metered taxi operators.
In some instances, passengers have been harassed by drivers or tenant drivers – with some incidents leading to arrest.
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