South Africa: How the Taxi Industry Works in the Western Cape

The public transport system has been brought to a halt for more than a week since the minibus taxi industry in the Western Cape went on strike.

Taxis need an operating licence to provide a public transport service. These licences are regulated and approved by Provincial Regulatory Entities . SANTACO said in its recent court papers that in order to apply for this licence, a letter of recommendation from a taxi association was required. And to join an association can cost between R10,000 to R200,000. In this way, a taxi operator must first be part of an association in order to access a route and an operating licence.

According to Associate Professor Andrew Kerr of the UCT School of Economics, over the past few years there are likely between 15,000 and 20,000 taxi drivers in Cape Town. There are about 200,000 to 250,000 drivers nationally, so Cape Town is between 7% and 10% of the national total.from September 2020, of the 200,000 minibus taxis about 63,000 to 100,000 are operating illegally, i.e without an operating license.

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