Here’s how much taxi fares have increased in South Africa
SA Taxi owner Transaction Capital recently published its results for the year ended September 2019, outlining the current state of South Africa’s taxi industry.
The group said that approximately 69% of households use minibus taxis in 2019, up from 53% in 2003. This equates to around 15 million commuter trips a day.
However, the group noted that there are also a number of issues facing the industry including the rising costs of vehicles and petrol.
It estimates that the average price of a Toyota HiAce minibus-taxi is now R451,600 – a 24% increase since 2015.
At the same time, it noted that the November fuel price of R15.53 per litre (petrol) is only 6% lower than the all-time petrol price in October 2018.
Taxi fares
Transaction Capital said that fares are determined by each association per route and are designed to ensure that ensures operators remain profitable.
It added that demand for minibus taxi services is relatively inelastic and that a number of factors are considered when looking at fare increases, including:
- Timing & extent of prior increases;
- Commuter affordability;
- Operator profitability;
- Other modes of transport for a particular route.
The group’s data shows that most major provinces did not increase their fares in 2019 with the exception of KZN (7%) and the Western Cape (6%)
However, it should be noted that a number of the other provinces introduced hefty increases in 2018.
Read: The company cashing in on South Africa’s minibus taxi industry
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