Uber in South Africa: Is It Fair For the Drivers?

Introduction
The economy of South Africa is marked by a significant informal sector, high unemployment
rates, extreme inequality, and a relatively well-developed internet infrastructure. Additionally,
the country's regulations encourage innovation. The emergence of the gig economy, which is
generally understood to be a labour market made up of temporary and freelance work, is
highly anticipated in this country due to all of these factors (Fairwork, 2021). The idea behind
the sharing economy is to link people with underutilised or unused assets with individuals
who are looking to use those assets (Böcker & Meelen, 2017).

The gig economy has visible benefits for both the owners of the asset and consumers,
however, in recent times, several noteworthy issues have been brought to light, prompting
critical inquiries regarding the morality of the sharing economy's development and
application in diverse contexts (Martin, 2016). This study examines how the digital economy
and its platforms are influencing South African society and the lives of its labourers through
the lens of Uber.

Company Profile
Uber was first founded in March 2009 located in San Francisco by Travis Kalanick and
Garrett Camp. Starting in September 2013, Uber has been operating in South Africa. With the
use of the global positioning system (GPS), Uber's smartphone application locates the user
precisely and instantly links them to the closest driver who is available (Dube, 2015). After
struggling to successfully hail a cab on a chilly Parisian night in 2008, both the founders,
Travis and Garrett, came up with the concept that has since revolutionised taxi transportation.
They created an app that enables potential passengers to request a ride, get estimated costs
and travel times ahead of time, and make reservations in advance. In terms of payment
method, time-saving, and ease of use, the service provides great convenience to both drivers
and passengers (Adebayo, 2019).

Creating a fair, transparent, and inclusive process for people to become driver-partners and
access new economic opportunities was part of Uber's original mission when it launched in
South Africa (Uber, n.d.). Approximately 4,000 Uber drivers work in Gauteng, accounting for
over half of their total; as of 2020. Gauteng, the Western Cape, KwaZulu-Natal, and the
Eastern Cape are the four main provinces in South Africa where Uber operates (Maziriri et
al., 2020).

How The Platform Works

Uber is a taxi service that is presently disrupting the global taxi industry. Since it doesn't own
any cabs and the drivers aren't employees, it is unconventional compared to other taxi
companies. Uber could, however, be better described as a "technology company" since, as
noted by Walji & Walji (2016), they match drivers and passengers via a mobile app.
Furthermore, Uber does not require car ownership; instead, it depends on volunteers who
download its mobile app and connect to customers at a competitive fixed-cost rate (Mwaura,
2016).

Consumer Perspectives
After downloading the Uber app to their smartphones, users create an account and request a
ride from one place to another. When a ride request is made, drivers in the area are notified
and have the option to accept it. Through the app, users can stay in real-time contact with the
driver and find out where they are. Uber offers customers in South Africa the option to pay
with cash or a credit or debit card, giving them more flexibility. Moreover, Uber drivers in
South Africa go through a rigorous screening process with an emphasis on safety, and the app
gives users information about the driver and the vehicle before the ride starts (Carnell, 2023).
Uber provides a range of services, including UberX, UberXL, Uber Black, Uber Van, and
UberGo, to meet the different needs and budgets of its users regarding transportation.

According to certain research, Uber provides users with better experiences than traditional
taxi services and is more comfortable and convenient (Rayle et al., 2019). In addition, waiting
times have significantly decreased compared to traditional taxis, which are not thought to be
as affordable and practical as other forms of transportation, since the introduction of services
like Uber (Sthapit and Björk, 2019).

Employment of the Drivers

In order to drive for Uber in South Africa, one must fulfil certain prerequisites, such as
possessing a current Professional driving permit (PrDP) from South Africa, being at least 21
years old, passing a driving evaluation in certain cities, and completing a safety screening.
The driver can activate their account and begin providing rides after completing these steps
(Uber, n.d.).

Many commuters were dissatisfied with the taxi business, which they perceived as being
unsafe, costly, and unreliable, by the time Uber South Africa debuted in September 2013. For
this reason, many South Africans considered Uber's reputation as a dependable and
reasonably priced service to be a lifesaver. Uber's services have been especially appreciated
by middle-class commuters who dislike crammed minibuses and expensive metered taxis.
Nevertheless, not everyone is a fan of Uber despite its success. Drivers of metered taxis in
South Africa have been especially outspoken in their criticism of Uber's existence. (Mokoena,
2018).
Besides having the threat from drivers of metered taxis, Uber drivers are vulnerable to
exploitation due to their limited or nonexistent legal protection. When people use their
platforms to look for temporary employment, the majority of platform owners refuse to
accept that these people are actually "workers" (or employees). Consequently, gig workers
are not entitled to the labour protections (Van Der Spuy, 2019).

Böcker, L., & Meelen, T. (2017). Sharing for people, planet or profit? Analysing
motivations for intended sharing economy participation. Environmental Innovation and
Societal Transitions, 23, 28–39. https://doi.org/10.1016/j.eist.2016.09.004

Martin, C. J. (2016). The sharing economy: A pathway to sustainability or a nightmarish

form of neoliberal capitalism?Ecological Economics, 121, 149–159.
https://doi.org/10.1016/j.ecolecon.2015.11.027

Maziriri, E., Mapuranga, M., Mushwana, J. & Madinga, N. (2020). Antecedents

That Influence the Intention to Use the Uber Mobile Application: Customer
Perspectives in South Africa. International Association of Online Engineering

Van Der Spuy, A. (2019). https://africaportal.org/feature/uber-uber-wall-whos-

fairest-them-all/

Jibran Walji and Jabir Walji (2016). Uber, a Disruptive Business Model of a Taxi Service. Int.J. 421
Systematic Innovation, 4(2), 23-29.

Rayle, L., Dai, D., Chan, N., Cervero, R. and Shaheen, S.A. (2016), “Just a better taxi? A survey-based
comparison of taxis, transit, and ridesourcing services in San Francisco”, Transport Policy, Vol. 45, pp.
168-178.

Sthapit and Björk (2019)

Carnell, P. (2023). https://www.ncesc.com/how-does-uber-work-in-south-africa/

Rayle, L., Dai, D., Chan, N., Cervero, R. and
Shaheen, S.A. (2016), “Just a better taxi? A
survey-based
comparison of taxis, transit, and ridesourcing
services in San Francisco”, Transport Policy,
Vol. 45,
pp. 168-178
Rayle, L., Dai, D., Chan, N., Cervero, R. and
Shaheen, S.A. (2016), “Just a better taxi? A
survey-based
comparison of taxis, transit, and ridesourcing
services in San Francisco”, Transport Policy,
Vol. 45,
pp. 168-178
Rayle, L., Dai, D., Chan, N., Cervero, R. and
Shaheen, S.A. (2016), “Just a better taxi? A
survey-based
comparison of taxis, transit, and ridesourcing
services in San Francisco”, Transport Policy,
Vol. 45,
pp. 168-178
Rayle, L., Dai, D., Chan, N., Cervero, R. and
Shaheen, S.A. (2016), “Just a better taxi? A
survey-based
comparison of taxis, transit, and ridesourcing
services in San Francisco”, Transport Policy,
Vol. 45,
pp. 168-178