South Africa`s State-owned Industrial Development Corporation (IDC) is upbeat about response to a project that gives taxi commuters access to telecommunications services inside minibus taxis, using cashless rechargeable mobile phone cards.
Partly funded through a R5 million loan from the IDC, the Taxifone project is a partnership between the corporation, the Taxifone company, Top Six Management taxi association, and JSE-listed IT group Prism Holdings.
The IDC is also warehousing a 53% shareholding in Taxifone on behalf of a black economic empowerment (BEE) consortium.
The IDC`s project manager, Prabashen Govender, says that since roll-out began towards the end of last year, 300 payphone units have been installed in taxis, and it is planned that 10 000 units, in total, will be used during the project`s five-year lifespan.
The Taxifone concept - called Shesha - uses a rechargeable Vodacom co-branded payment card that is inserted into the payphone unit installed in a minibus taxi. Using GSM technology, the value is deducted from the card as a call is made.
"The need for this project was borne out of the current spend on payphones and the time people spend using these phones," Govender explains.
"Individuals who purchase a Shesha card will be able to load funds onto the card by purchasing Shesha recharge vouchers through traditional prepaid voucher channels, as well as designated vendors at taxi ranks," says Loyiso Jiya, head of the IDC`s Private Public Partnerships business unit.
"In this way, Shesha offers commuters a service that is easy to use, convenient, secure and reliable, while providing taxi owners and operators with an additional revenue source without having to handle cash."
Jiya adds that, in spite of the fact that his business unit typically finances large infrastructure projects, the broad-based BEE factor was one of the main drivers behind the IDC agreeing to fund a project of this comparably small size.
Govender points out that, in addition to providing a telecommunications service, the payphone units in the minibus taxis offer functionality for future use.
"The key issue is that the units offer a fair amount of flexibility, as they can handle fare collection and telemetry and act as a tracking device," he says.
The number of people who derive an income from the project is widespread, Govender comments. At this stage, the project has already created 200 new jobs at Taxifone, and is expected to create 800 vendor jobs within the next five years.
Jiya explains that the way the Taxifone is structured means that margins are shared between taxi owners, Top Six Management, the distribution channel and Taxifone.
"In this way, everyone gets a piece of the action, making it truly broad-based and sustainable because there is something in it for everyone."
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