How much money WeBuyCars is making

WeBuyCars’ (WBC) core headline earnings for the 2021 financial year have grown by 79%, to R541 million, when compared to the same period in 2020.

SA Taxi’s core headline earnings for the 2021 financial year are up by 109%, to R499 million, when compared to the same period in 2020.

These figures were revealed in the Transaction Capital earnings report for its 2021 financial year.

The news follows Transaction Capital raising its stake in WBC to 74.2% in 2021. It also owns a significant portion of SA Taxi.

The strong results are due to a “combination of organic growth from our existing divisions, SA Taxi and Transaction Capital Risk Services (TCRS), and high earnings growth from our newly acquired division, WeBuyCars,” said David Hurwitz, CEO of Transaction Capital.

WeBuyCars

WBC managed to trade throughout the Covid-19 pandemic in 2020 and 2021, with the overall volumes of vehicles traded in the 2021 financial year exceeding expectations, said Transaction Capital.

“The strategy to sell vehicles online via its e-commerce platform continues to deliver positive results, with e-commerce sales increasing significantly to approximately 30%,” it said.

Furthermore, WBC increased its total vehicle bays to roughly 5,800 in 2021, with this expected to increase to around 7,000 bays with the opening of the new Dome dealership in December.

“As a result, WeBuyCars’ target to increase the volume of vehicles traded to 10,000 per month is on track to be released sooner than initially anticipated, with the group’s revised target for the medium-term now increased to 15,000 vehicle sales per month.”

SA Taxi

The minibus taxi industry also operated throughout the Covid-19 pandemic, only being disrupted by three periods – including at the start of the pandemic, during the second wave of lockdowns, and during the third wave of lockdowns coupled with civil unrest in KwaZulu-Natal, Gauteng, and parts of the Western Cape, said Transaction Capital.

“Despite these environmental pressures, SA Taxi posted an operational, credit, and financial recovery, with earnings nearing 2019 levels,” it said.

“SA Taxi will continue to assess opportunities for further vertical integration to broaden its addressable market and to enter new adjacent sectors in support of future organic growth.”