Taxi economics: Drivers’ incomes behind the taxi battle

10 March 2017 - 18:07 By Kyle Cowan
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Uber and Taxify are‚ on average‚ between R30 and R50 cheaper than meter taxis.
Uber and Taxify are‚ on average‚ between R30 and R50 cheaper than meter taxis.
Image: iStock

How much of the money you pay towards your taxi fare actually goes to the driver?

It’s a question at the core of meter taxi strikes that saw roads leading to OR Tambo Airport on Friday blocked causing mayhem for commuters.

At the same time‚ Uber drivers gathered in Parktown at the Uber head office in protest‚ because they feel they are not being protected by the company.

But is Uber or similar service Taxify really cheaper than a meter taxi?

The simple answer is yes. Uber and Taxify are‚ on average‚ between R30 and R50 cheaper than meter taxis.

The Times conducted a quick comparison of the different services available in three major cities‚ Durban‚ Cape Town and Johannesburg.

In all three centres‚ we compared prices from international airports to popular destinations.

Here’s what we found out:

Johannesburg: OR Tambo International Airport to Sandton Convention Centre (30km) Service Fare You pay per KM Uber R272 R9.06 Taxify R180-R240 R5.4 - R8 Rose Taxis R400 R13.33 Rainbow Cabs R450 R15

Durban: King Shaka International Airport to Durban International Convention Centre (32km) Service Fare You pay per KM Uber R297 R9.28 Taxify R225-R305 R7.03 – R9.53 Eagle Cabs R350 R10.93 Rikki’s Cabs R400 R12.5

Cape Town: Cape Town International Airport to V&A Waterfront (22km) Service Fare You pay per KM Uber R202 R9.18 Taxify R160-R215 R7.27 – R9.77 Marine Cabs R280 R12.72 Unicabs R280 R12.72

Most meter services charge a minimum rate of between R20 and R50 for short trips‚ and then charge per kilometre – from the companies we spoke to‚ this was an average of about R12 a kilometre.

An Uber or Taxify cab can be used for as little as R15 for short local trips.

What the metered and Uber drivers earn

So what about allegations that Uber is killing the meter taxi industry?

TimesLIVE posed this question to a meter taxi driver who said unequivocally‚ yes.

“You see‚ the company I work for I must pay a flat rate of nearly R600 a week‚ and I get to keep the rest of the fares I make‚” said the driver‚ who did not wish to be named.

He explained that some meter taxi companies held the drivers liable for the upkeep of the vehicle.

“So that is why other meter taxi drivers are crying.”

Uber drivers pay a rider fee of around R2 per trip‚ and then 25% of the fare goes to Uber‚ while the driver keeps the rest.

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