The rise of homegrown e-hailing apps coupled with a deterioration in the quality of service could mean that industry heavyweights such as Uber and Bolt may be dethroned in South Africa in the near future.
When these services initially entered South Africa in the 2010s – Uber in 2013 and Bolt in 2016 – they were lauded for their top-notch service, the cleanliness and quality of their cars, and the professional conduct of their drivers.
While they were pricey at the time, people were happy to pay for the peace of mind knowing they’ll get where they want to go safely and quickly.
However, a decade down the line, the standard of these services has significantly declined.
Take one look at review platforms such as HelloPeter, where Uber has a rating of 1.27 out of 5 stars, with 3,632 of the 4,222 total reviews giving the business one star.
Meanwhile, Bolt has a 1.23 star rating from 2,221 reviews, 2,033 of which are one star.
The top complaints for both platforms surrounded cancelled trips, overcharging, unauthorised deductions, long waiting times, janky cars, dishonest and abrasive drivers, and goods that were accidentally left in vehicles and never returned.
Riders furthermore claimed that their calls to the platforms’ support hotlines remained unanswered.
Thato Ramaila, chairperson of the Soweto United E-hailing Association, previously told Daily Investor that Uber does not “have a clue what’s needed on the ground.”
He accused the company of doing very little to protect its drivers against attacks and that the measures it has thus far implemented – such as a panic button – do very little to deter criminal activity.
He also said Uber regularly fails to engage with concerned partners, sentiments often echoed by operators on these apps.
He explained that drivers do cancel trips when it does not make financial sense and that they must go to extreme lengths to make ends meet, such as avoiding using airconditioning, due to the lacklustre profits they reap from the job.
The impression that operators are less conscientious now than when Uber and Bolt first launched is also because of deteriorating working conditions and lower income, he said, which disincentivises drivers to be courteous toward their passengers.
“Drivers are frustrated because they have to work very long hours to compensate for the low fees Uber pays,” said Ramaila.
He added that criminals working for Uber are behind many problems, including overbilling for trips and robbing clients.
In previous communiques regarding the safety and efficacy of its service, Uber said that driver safety remains of utmost importance, which is why it has implemented features such as an in-app emergency button, Audio Recording, RideCheck, and Safety Check-up.
It further said that it has strict vehicle standards dictating things like the quality and age of vehicles, which drivers must adhere to as part of the company’s requirements to sign up.
Regarding the cancellation of trips, Uber said one of the reasons is driver preference, with some focusing their attention exclusively on longer journeys.
Traffic congestion plays a role, too, with drivers trying to avoid shorter trips in built-up areas as they burn lots of fuel in heavy traffic.
It is an issue Uber is working to resolve. “We increased the fares on short trips to make them more attractive to drivers,” it said.
“While we have seen some improvements, we know that more interventions are required to address this.”
Uber added that it continues to be open to discussing with drivers to understand their concerns.
Homegrown hotshots
With Uber and Bolt making headline after headline for numerous controversies in recent times, it has opened up the door for rivals to establish themselves as the leaders in the South African e-hailing sphere.
One the most prominent recent faces in the sector is Wanatu, a new service that currently operates in Centurion and Pretoria.
Wanatu – a play on the Afrikaans term “waarnatoe”, meaning “where to” in English – launched in October 2024 and aims to do things a bit differently to existing e-hailing companies.
For one, it employs its drivers full time instead of treating them as independent contractors like most e-hailing businesses, meaning they are entitled to more privileges and have better job security.
Wanatu also owns its entire fleet of vehicles instead of requiring the driver to use their own, all of which are equipped with a dashcam and inward-facing camera, GPS tracking device, two-way radio system, and panic button.
While Wanatu has caught flack for its policy of only hiring drivers who are fluent in Afrikaans, it has garnered plenty of social currency in a recent court case where it took on the Gauteng government on behalf of all e-hailing operators in the province regardless of who they drive for, and emerged victorious.
Another contender is Twytch, which is attempting to address one of the industry’s biggest problems – safety.
Rolling out this February, Twytch is employing blockchain technology to verify the credentials of both drivers and passengers using the app.
Each ride has a verified passenger and driver whose details are stored cryptographically on a decentralised blockchain, making the data impossible to forge or alter.
In addition, the company vowed to treat its drivers more like employees with benefits, rather than independent contractors.
It has partnered with Momentum and FNB to provide health and financial perks for its operators, and it remunerates them on a per-kilometre basis instead of relying on a commission-based model like Bolt and Uber.
Twytch also does not include a surge-pricing policy, which sees other e-hailing services charge different rates based on real-time conditions like traffic and demand, ensuring stable pricing for users.
In an effort to get a slice of the e-hailing market, local entrepreneurs in partnership with the South African National Taxi Council (Santaco) launched the Shesha e-hailing platform in May 2024, operating exclusively in Gauteng.
The app touts several benefits over its more established competitors, such as fixed pricing, digital-only payments, and an “Emergency Ride” feature that allows users with over 10 trips to their name to request a ride of less than 5km and pay for it at a later date.
It also puts an emphasis on safety, implementing measures like background checks on all drivers, comprehensive vehicle inspections, and user verification through the Department of Home Affairs.
Shesha has received unwanted attention due to claims of alleged intimidation by Santaco members coercing people to download the app.
In response, the company urged victims to report their aggressors, and said it would launch an internal investigation to determine who were responsible for these incidents of what can only be described as extortion.
The one caveat with all three of these services is that they are only available in select regions, whereas Uber and Bolt are on call nationwide.
However, Wanatu, Twytch, and Shesha have all indicated a willingness to expand to the rest of the country once their user base grows big enough.
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