Being a taxi owner in South Africa is no longer a profitable business. Contrary to popular opinion, the taxi industry is still the most reliable and preferred mode of transport for 60% of commuters. The reason for this preference stems from the simple fact that a taxi goes to more places, more often and is cheaper. For this reason, South Africans love them.
The industry has been dealt several severe dents in the few decades, from rising costs of buying taxis , the rising cost of petrol, high-interest rates , and commuter levels eroded by new market entrants such as e-hailing, employees working from home, the Bus Rapid Transport . The challenges facing the taxi industry in South Africa are complex, and calls for technological innovation.
Not only can real-time technology be used at the taxi owner level, but also at the route office and at the association level, where it provides a bird’s-eye view of the performance of all the taxis at the association level. The daily data gathered by the associations can be used to assess supply and demand, analyze movements during peak/off-peak times, total kilometers driven, and monitor drivers’ performance.
Finally, by using technology, the taxi industry can reduce waste and inefficiencies and change the negative “high-risk” perceptions that result in unfavorable payment and financing terms. The industry needs to turn things around, and as things stand, the quickest way to address these immediate and pressing issues is the adoption of technology from the bottom up. Adopting technology can help rebrand the industry and draw them back, and their return comes with additional revenue.
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