A transport specialist warned that the minibus taxi industry in South Africa risks falling behind as passenger transport evolves. Operators are missing out on lucrative opportunities in the ride-hailing market due to an unwillingness to implement diversification.
The discussion took place during the Frank Dialogue on the state of the South African transport sector in uMhlangi last Thursday. At the event, taxi representatives, transport experts, and the Passenger Rail Agency of South Africa (Prasa) examined how the sector can respond to changing passenger demands and increased competition.
Wuyi Madjola, Head of Integrated Public Transport Systems at CityCon Africa, advised taxi owners to consider investing in smaller vehicles that could operate on ride-hailing platforms alongside their minibus services.
Madjola calculated that the ride-hailing market in South Africa is valued at approximately 26 billion rand annually, involving about 70,000 vehicles and growing at an average annual rate of 17%. She noted that owners risk being left behind.
According to her, ride-hailing and minibus taxi services do not always serve the same passengers. While taxis typically run on fixed routes, ride-hailing services provide door-to-door service and also connect with stations and taxi ranks.
Madjola stated: 'Can the taxi industry participate in ride-hailing? Absolutely.' She questioned why taxi owners do not acquire smaller cars instead of relying solely on minibuses, arguing that the industry could earn revenue from both services.
She also pointed out that the loss of potential ride-hailing income has caused dissatisfaction among taxi owners who felt their passengers were being taken by competitors. Furthermore, she criticized the operators' inability to pool financial resources and strengthen their positions when approaching lenders.
Using a hypothetical calculation, Madjola showed that 10 million taxi trips at 15 rand each would generate 150 million rand per day, or 750 million rand over five days. Despite this potential aggregate turnover, financial institutions continued to view taxi operators as high-risk borrowers.
She concluded: 'The government let down the taxi industry, but the taxi industry let itself down.'
Madjola also questioned whether the expansion of Prasa's intercity bus services could draw passengers away from taxi operators, citing the Durban–Johannesburg route. The head of Prasa, Hisham Emeran, rejected this assumption.
Emeran stated: 'Prasa is not stealing passengers. We have been running between cities for decades.' He added that Prasa is modernizing its intercity bus services, including Translux and City to City.
On October 15, the agency introduced 17 new City-to-City buses in Pretoria as part of its fleet renewal program. Emeran emphasized that these are long-distance transports, not daily commuting services, and they are not intended to compete with taxis.
He reported that Prasa and the National Taxi Council of South Africa (Santaco) are discussing public transport integration. In his view, taxis, buses, and trains should work together to serve passengers.
Matula Mkhize, regional chairperson of Santaco for Durban-West and chairperson of the eThekwini Local Taxi Council, acknowledged the need for changes from taxi operators. However, he noted that progress was slowed by the Covid-19 pandemic and devastating floods in KwaZulu-Natal. He stated: 'We are trying to catch up on the transformation.'
Mkhize explained that job losses reduced the number of passengers able to afford taxi rides, and damaged infrastructure made some routes inaccessible. The government also had to redirect resources to recovery rather than industry development. Nevertheless, he noted improved interaction with the government, mentioning plans related to integrated transport services and the postponed Durban public transport program. He stressed, however, that the industry needs support to turn plans into a viable business.
Mkhize countered that the taxi sector did not receive the same formal transformation support as other industries, although he welcomed broader government consultation. He also admitted that violence and taxi route disputes hindered progress.
He called for changes in the management of family taxi businesses, especially to protect women who inherited operations from their husbands. Stating: 'We are transforming into companies,' he explained that wives and children should have greater access to business documentation and participate in management. He also mentioned that the Santaco women's department handles complaints of violence and abuse.
Mkhize noted that changes in ministers, officials, and taxi leadership can interrupt negotiations, as every new appointment requires restarting discussions.
Madjola cited taxi associations in Alexandria and Centurion where operators found opportunities within broader transport networks. In Alexandria, she said, the taxi consortium provided shuttle services, connecting passengers with other modes of public transport. She suggested that similar agreements could create business opportunities for other taxi associations.
Mkhize concluded that the industry must analyze its own shortcomings, as well as delays from the government, and prepare to seize new opportunities before demanding further assistance. He emphasized: 'We know our weaknesses and mistakes.'
