Introduction
The South African Taxi industry emerged by necessity. During Apartheid, when segregation was the norm and modes of transportation were scarce – especially for the Bantu people, the taxi industry provided quick, reliable and cheap transportation that provided access to the cities for the previously marginalized and excluded. Minibuses (Taxis) soon became popular, earning the name Zola Budd after the famous Olympic South African runner. Trains were the next best competition; however, they were neither fast nor efficient in entering secluded areas.
The Industry’s Sectors and Development of the Taxi Industry
The industry further created a budding economic hub with vibrant market around it. Aside from creating employment for the drivers and conductors, businesses and entrepreneurs built their business around taxis and rely on taxi ranks for customers, including mechanics and car parts retailers. The industry has seen little development since its inception. The majority of the minibuses are financed, meaning that owners and drivers needed to cover vehicle repayment coupled with the rising fuel prices, servicing of vehicles, while maintaining its affordability even though it discouraged extra investment in innovation.
The Application and Formalisation of Legislation
The formalization of the taxi industry will ensure that owners and drivers must be tax compliant and follow the law. This will dent the independence of the industry, said to be the major cause of opposition to these measures from the taxi associations. The expansion of the taxi industry required the implementation of decisive legislation, to combat erupting criminal activity and regulation. The industry was often associated with killings, robbery and violence – mostly relating to competition between taxi owners. As a result, the South African government resorted to statutory measures.
Challenges of Regulating the Taxi Industry
Mainly transacted through cash, the industry proves hard to tax. Nevertheless, the government has implemented other means of regulations like passenger capacity, professional driving permit (PRDP) requirements, vehicle roadworthiness, license to operate and impounding of non-compliant taxis operators. The implementation of these measures was met with backlash by the independent and self-regulating industry. Taxi owners perceive that the officials impound their vehicles for minor or non-existent offences, only to impose exuberant fines. This has caused a clash which resulted in numerous strikes and economic disruptions, resulting in roadblocks and restricted movement. Another challenge that persists for the industry is the increase in e-hailing services, competition, and the offering of alternative transport for their customers which jeopardizing the profits of the industry.
Conclusion
It would be beneficial for the industry to branch out into petrol, panel beating and other motor related services. But most importantly to self-finance vehicles, allowing for innovation, security mitigating risks of a lost livelihood. The taxi industry has faced challenges ranging from legislation, financing, and international competition however they remain a formidable and thriving industry. The challenges faced can be fixed by integrating legislation and innovation to better accommodate passengers. It would be a tragedy for such a rich historical black owned industry to fail.
