Uber a lifeline for the jobless

The arrival of app taxi company Uber has created a financial boon for thousands of people in South Africa.

"It's the good times for me," said Johannesburg Uber owner and driver Khalid Mohammed.

He and other owners run a 15-car fleet that earns them each upwards of R40,000 a month after deductions.

Lameck, who asked for his surname to be withheld, owns six cars that earn him at least R20,000 a week.

"This is definitely the way to go. I work my own hours. I have a set amount that I ask from my drivers, who get good salaries. After all my payments, which include salaries, car repayments, fuel and other overheads, I am still making very good money," he said.

Signs of how lucrative Uber can be, especially for owners, can be seen by the cost of vehicle slots.

On Gumtree on Friday, a Johannesburg slot was being sold for R25,000, while one in Port Elizabeth went for R7,000.

Early mornings, evenings and big event weekends can generate good money.

"It's big bucks .... People want to get to their destinations as quickly as possible and are prepared to pay for hassle-free transport," said driver Shayne Carter.

"I make at least R7,000 a week. You work hard, but it beats being jobless."

Another gave up his IT job.

"The salary is better. The hours are long, but I'm happy with the money," he said.

Economist Daniel Silke said: "Uber is filling an employment gap and creating entrepreneurs who develop small empires, especially for those who own multiple cars.

"The barriers are low to getting into Uber and you are not just another taxi driver, but an Uber-branded driver, which carries a lot of weight," said Silke.

Uber spokesman Samantha Allenberg said some of the company's 12,000 drivers used the app to grow their businesses.

But Uber driver spokesman Zweli Ngwenya said it was not necessarily a gold mine. "An Uber driver will tell you that they make a minimum of R6,000 a week, which sounds good, but looking at the hours they work you realise they are not making a killing."

Drivers often pay for petrol and data, which reduces earnings.

"You are not making a killing. You are surviving," said Ngwenya.