The introduction of e-hailing services in South Africa began in 2013 with the US operator Uber entering the local market. This was followed by the Estonian company Bolt two years later in 2015 and much later, the Chinese-based DiDi Chuxing. The transport economy was revolutionised, giving our country a much-needed subsector that was not only good and convenient for customer comfort and dignity but also created a new decent jobs market.
The problem of course is that this independence is in word only and not in deed. Uber drivers, if they were independent contractors would set their own prices and would balance price increases between their share and what is transferable to the consumer, especially the runaway petrol increases. For drivers who don't own their cars, on top of the petrol increases and Uber share of 25%, they must pay another weekly R2,500 to the owner of the car.
Uber drivers further wanted government to create a fair regulatory environment that enables investment in an equitable and socially responsible manner; They also want government to guard against the creation of app monopolies that compete at the expense of operators and drivers. They want commission to be slashed to 10%. Some companies charge up to 25%.Uber and price determination
According to a MIT CEEPR study examining the economics of Uber and Lyft, another e-hailing company in the US.
Ambee seeks to find a fair solution to bot the price sensitivity of clients and the need for drivers to run profitable transport businesses. The app charges drivers only a monthly subscription and lets them keep all their earnings from clients.
yonela_diko