Every business owner thinks about the possibility of making their business successful in every location they want to. But the important thing is to understand the potential of the market before entering the field.
In this article, you’ll be reading the factors that make it possible for entrepreneurs to enter the South African market with an Uber-like taxi business.
Let’s get to know the reasons why starting an Uber-like business in South Africa is the best decision to make now!
What is the current taxi market performance in South Africa?
The revenue of the African taxi industry is estimated to be $5641 million in the year 2025. That’s something to look forward to.
Minibus taxi is the main transportation facility in South Africa.
Imagine making the native people enjoy the luxury of going to a destination in a separate vehicle without any economic hindrance?
It’ll get them excited! Use this potential to exponentiate your on-demand taxi business!
What are the core challenges to start an Uber-like taxi business in South Africa?
These are the three core challenges that the users would like to address while using an Uber-like taxi app for booking their transportation!
Let’s get to know them and fill in the gap!
1. Safety of the riders
With the pandemic and people concerning their safety more than anything, implementing a safety feature can enhance the performance of your on-demand taxi app.
Having a precautionary notification feature can enrich the booking experience of the rider. It could include a pop-up message reminding them to wear their masks and follow the safety procedure before proceeding with their ride.
2. Secured payment procedure
The riders are biased about using an online portal to make payments for their riders. They question the success rate and the security of their bank account details.
To make it more efficient, an in-app wallet option where the bank account details have to be entered during every top-up of the amount in the app can ensure the credibility of the platform.
3. Support from NGOs to start a nationality-friendly taxi business
Reaching a wide range of target audiences will be a task in the rural areas with modern technology. To make the marketing efforts stress-free it is suggested to seek help from NGOs.
The support of non-governmental organizations in an under-developed economy is essential for your business to be recognized by the people from the locality.
They’ll be able to understand the benefits of your business presence. The NGOs will be able to communicate your business positively to the native South Africans.
Why should you consider starting an Uber-like taxi business in South Africa?
Let’s take a look at the reasons as to why owning an Uber-like taxi business in South Africa can be a prospective decision!
People from the Southern part of Africa prefer taking public transportation (minibus taxi) since it’s cheaper. If you plan on providing exclusive services at a reasonable rate, people might try you out.
Taxi-based services are considered 75% of public transportation in South Africa.
The number of car owners is less as South Africa comes under a meager economic position all over the world.
Major competitors in the taxi industry
Get to know who are your top competitors in the field. Use their strengths and weaknesses to make a mark for your business in the taxi industry!
This is the list of major competitors in the taxi industry.
- Yookoo Ride
- Taxi Live Africa
- Orange Cabs
- Zebra Cabs
Every one of these taxi apps in the industry has its own pros and cons. As an entrant in the taxi industry, you’ll have to research their performance - financial and market, test their apps, their target audience, and their marketing strategies before competing with them!
4 Things to consider before building an on-demand taxi business in South Africa
These are the four things to keenly remember when starting an on-demand taxi business in South Africa!
1. Business model & Revenue model of the Uber-like taxi app
Considering an aggregator-based business model is much more fruitful, as you’ll be the owner of the on-demand marketplace. Where you provide the best services for the people by connecting service providers and end-users.
To complement an aggregator business model, the commission-based revenue model is progressive. As the business model gives scope for flexibility, the commission revenue model can enrich the earnings of the platform.
2. Legal requirements to start an online business in South Africa
These are the 4 legal requirements to follow to start an online business in South Africa;
- Have your website and app - UI & UX copyrighted under the Copyright Act.
- Comply with the foreign laws while starting an expansion for your taxi business.
- Have a clear and user-friendly Terms and Conditions section of the app and website.
- Mishandling of user data is monitored based on the EU’s General Data Protection Regulation, 2018, and South Africa’s Protection of Personal Information Act.
3. Features and functionalities to include in the Uber-like app
The features and functionalities of the Uber-like taxi app have to comply with the needs of the Native people.
They regard the safety and security of their people and money more than anything else. Therefore, making sure your on-demand platform has a secured payment gateway and proper precautionary measures in the taxi app are very important.
4. Tech stack to build the taxi app
Using an appropriate technology that is latest, flexible, and scalable is more essential.
Flutter could be one of the best cross-platform options to build an apt on-demand taxi app for your business in South Africa.
Having both the Android and iOS apps can help you reach more customers.
Get to know our ready-made taxi app solution, Wooberly - it’s 100% customizable and scalable for your on-demand business.
We use superior technology to build taxi apps for our customers. We are known for our timely delivery and explicit tech support!
Check out our FREE Demo before discussing the details with us!