Ride-hailing platform Uber says it contributed R17bn to South Africa's economy in 2023. This is according to the US company’s first economic impact report, which accounted for Uber’s e-hailing and food delivery businesses.
South Africa is estimated to be home to about 100,000 e-hailing drivers and more than 2-million passengers.
Uber, the word’s largest ride-hailing platform, launched its operations locally in 2013. It is the largest competitor with operations in 24 towns and cities, including Cape Town, Durban, Johannesburg, Pretoria and Gqeberha.
In South Africa, where unemployment tops 33% and close to 2-million jobs have been shed in the past two years, freelance or “gig economy” work, such as ride hailing and food delivery, have become a lifeline for many people.
The company said the report “revealed the substantial benefits the technology company has delivered to South Africa’s economy, individuals seeking earning opportunities and local communities in 2023, and in the past decade since entering the local market”.
Our calculation is informed by the results of an online survey distributed to Uber drivers.
— Amy Price, director at Public First
Transportation and delivery services organised via the Uber platform contributed about R17bn to the economy, representing 3.5% of the transport sector’s total economic output, the report states.
Amy Price, director at Public First — the research firm which undertook the study — said the contribution was based on a survey of drivers using the Uber platform.
“To make this calculation we took into account the money Uber pays to drivers and partners, then the knock-on or indirect effects this money will have in the economy,” she said during an event in Johannesburg.
“Our calculation is informed by the results of an online survey distributed to Uber drivers. Based on responses to questions we estimate how much was spent on their vehicles while working for Uber. We then calculate the knock-on effect of that money spent on items such as fuel, using economic multipliers to calculate the impact of that whole supply chain.”
Through this study, the company is also looking to change negative perceptions emanating from ride-hailing drivers who have tried for a number of years to fight for protection under the law, saying they want more than simple employee status. They argue the relationship between drivers and platforms is more complex in South Africa than in other parts of the world.
Unsafe working environment
Drivers have also raised concern about an unsafe working environment amid violent rivalry at times in the transport sector.
According to the report: “The platform also offers a range of benefits that other side hustles don’t, such as globally backed safety features, driver’s insurance and fast, reliable pay.”
Of the participants in the research, 72% of drivers and delivery people felt positive about Uber’s platforms, compared with just 14% who said they felt somewhat or very negative.
The Uber app created an estimated R1bn in additional value for the SA South African tourism industry. This is an additional 0.17% of the total tourism industry.
Uber is targeting all rides emanating from its platform being undertaken by electric vehicles by 2040, in line with a number of countries and organisations that have made similar pledges to reduce carbon emissions.
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