SA Taxi owner, Transaction Capital, has published a trading update ahead of its annual general meeting with the group warning of increased transport costs in the coming months.<\/p>\n
At the end of 2021, the 12-month average for petrol and diesel prices were 19% and 17% higher than a year ago, with the petrol price breaking the R20\/litre level. Petrol prices are now expected to increase further in the coming months, driven by international oil price increases, it said.<\/p>\n
“Russia\u2019s military action in Ukraine could push international oil prices up even higher, compounding the increases in local fuel prices. We are tracking this situation and the potential impact it may have on the affordability of our operators. Minibus taxi fares have increased on average by approximately 9.3% per year since 2013, to absorb these financial effects.<\/p>\n
“With a number of trips and passenger loads down due to the impact of Covid-19, the industry\u2019s profitability is under strain and further fare increases may be needed.”<\/p>\n
While the fourth wave of Covid-19 infections in December 2021 was less severe than previous waves, the ripple effects of the pandemic continue to drive sluggish growth across most sectors resulting in lower commuter volumes, it said.<\/p>\n
Although commuter activity is increasing as economic activity in South Africa increases, in the short-term it is not expected to reach levels experienced prior to the pandemic.<\/p>\n
Despite this, demand for new minibus taxis and Quality Renewed Taxis (QRTs) is exceeding Covid-19 levels and remains far higher than supply, it said.<\/p>\n
“SA Taxi continues to grow loans and advances whilst preserving credit quality in the current environment. To this end, we are targeting better quality and experienced minibus taxi operators, resulting in lower loan approvals.”<\/p>\n
The group\u2019s data show that minibus taxis have continued to grow in popularity over the last eight years and are now the preferred form of transport in South Africa due to accessibility and flexibility.<\/p>\n
An estimated 15 million commuter trips are taken daily in a taxi across South Africa, with increased dissatisfaction around bus stop facilities and rail\u2019s dwindling operating capacity.<\/p>\n