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Taxify gains traction in SA

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 27 Nov 2017
Taxify has seen success in the 18 months since launching locally.
Taxify has seen success in the 18 months since launching locally.

Following its recent launch in Port Elizabeth (PE), its fourth South African city, Taxify says it will expand to more local cities.

The international e-hailing transport service, launched locally in April last year, says it has seen success in SA, having created employment opportunities for tens of thousands of drivers in Cape Town, Johannesburg, Durban and PE.

Taxify works on the same principle as Uber of not employing drivers but allowing them to use the technology platform. With more than three million customers globally, the company operates in over 20 countries across Europe, Central America and Africa, recently launching in Nairobi and Kenya.

After its PE launch this month, the ride-hailing service has suspended pricing increases for a fixed period, and maintains it is still the cheapest ride-hailing service in SA.

Linda Mahloko, operations manager at Taxify SA, told ITWeb: "Taxify takes only 15% commission from its drivers, which is up to half the commission taken by other ride-sharing platforms. The lower commission allows Taxify to offer lower prices for riders and more take-home pay for drivers. The service also allows drivers to create a defined radius for pick-ups, meaning they don't need to stray too far from home."

Taxify prices range from R6 per km to R7 per km, depending on the city, while Uber charges between R7 and R7.50 per km. Uber has confirmed it takes a standard service fee of 25% commission from drivers' total earnings.

Over 18 months into its launch in the local competitive market, Mahloko says Taxify faces a fair share of challenges and it has approached government for possible resolutions.

"Our biggest challenge is transforming the transport industry into a new way of affordable, secure, safe and convenient transport. Hence, we see challenges from traditional operators that are against this new business model. We are engaging with government to create a specific law for the ride-sharing industry; however, we have not gained as much traction from government as we would have hoped."

With thousands of drivers registering with the company every week, Taxify says it offers better working conditions for drivers.

"We focus on keeping our drivers and riders safe in the current political climate of SA. This is achieved by strategically partnering with various key companies to aid both driver and rider to always feel safe when using Taxify.

"Happy drivers mean a better quality service for riders - Taxify believes in treating its drivers with respect and providing a range of safeguards and features that help them work in the way that suits them best."

Uber hubs

Samantha Allenberg, Uber spokesperson, says since Uber's local launch in September 2013, the company has gained over 969 000 active riders and 12 000 drivers in SA alone.

"With more than 1.8 million active riders across Sub-Saharan Africa, it is clear Uber has achieved a lot in a short timeframe. Our company is creating new economic opportunities for thousands of people in each city where we operate and encourages more efficient use of existing public transportation infrastructures," notes Allenberg.

Uber continues to open support hubs across the continent to ensure driver-partners are well-equipped, she adds.

"Apart from existing hubs across the continent, we have opened three more Greenlight Hubs in Dar es Salaam, Nairobi, Kampala, Kumasi and Lagos this year. In addition, we are offering driver-partners technical and app support, information sessions and workshops continuously," concludes Allenberg.

Taxify and Uber pricing

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