E-hailing drivers on strike in Cape Town

Drivers want the government to intervene to improve their conditions

By Marecia Damons

17 September 2024

Drivers participated in a strike on Tuesday and plan further action in the next three months. Photo: Marecia Damons

E-hailing drivers in the Western Cape are calling on the government to intervene and impose stricter regulations on the e-hailing industry.

On Tuesday, dozens of drivers from Uber, Bolt, and inDrive halted their services and marched from Hanover Street in Cape Town to the provincial legislature to protest against what they describe as exploitative practices and unfair conditions.

They say they want drivers who have been unfairly removed from the system by employers to be reinstated; they want higher pay; and they want improved driver safety features.

They also want e-hailing platforms to remove “unfair car age limits.” Uber recently instituted a policy requiring all vehicles on its platform to be no older than three years, meaning only 2021 models and newer are eligible to drive.

The drivers also want authorities to be quicker in granting permits.

The protest is the first in a series of planned actions across the province, with future dates set for 22 October, 19 November, and 24 December.

Omar Parker, secretary-general of the Western Cape E-Hailing Association (WCEA), criticised the current system. He said members faced low earnings and the companies took an unfairly high proportion of the fare. He also said drivers were automatically kicked off the system if passengers complained or gave them a low rating, without a fair hearing.

The drivers are also pushing for legislative reforms to address their concerns, including enforceable limits on companies’ commission rates and vehicle safety regulations. They say government intervention is necessary to protect drivers.

The drivers GroundUp spoke to requested that we only use their first names out of fear that they might be suspended.

Uber driver Wayne has been working as an e-hailing driver for seven years. He worked as a taxi driver previously for seven years but said he left because of growing taxi violence.

He said safety features available for drivers were inadequate. “We have to press a button on our phones if we get attacked, but we cannot have our phones in our hands — that’s illegal,” he said. He said that drivers have to pay for additional safety measures, like cameras, out of their own pockets.

Naeema started working as an Uber driver last year after the company she worked at was liquidated. She mostly works around the city centre. She expressed frustration over high commission rates and the lack of benefits.

“I made R4,000 recently, but Uber took 42%, leaving me with R2,320. My fuel cost R1,700 that day. Where is my profit?”

The drivers also want the transport department to investigate the compliance of multinational e-hailing companies with South African tax legislation.

Siyabonga Hlabisa, a spokesperson for the WCEA, said they had been meeting Uber management over the past year, but the company now only communicated through the App.

“We have been meeting with Bolt’s leadership virtually and they have made some efforts to respond to our grievances,” he said.

Despite rising petrol prices, e-hailing platforms have not adjusted their fares, worsening the financial strain on drivers. The WCEA is demanding a minimum rate of R13.50 per kilometre, compared to the current rates which are significantly lower— less than R5 for Uber GO, under R6 for Uber X, and around R10 for Uber XL, according to the group.

Elam Nukani, the deputy director for community outreach in the provincial Mobility Department, received the drivers’ memorandum and has been given 14 days to respond.

Simo Kalajdzic, senior operations manager at Bolt, told GroundUp that the company “constantly seeks ways to increase driver earnings” through various strategies.

“Bolt continues to monitor passenger demand, implementing strategies to boost it and, in turn, support driver earnings”.

Kalajdzic said drivers could raise their concerns directly with Bolt. “Additionally, we’ll be opening a driver engagement centre in the Western Cape this month to further enhance our ability to connect with drivers and support their needs,” he said.

Responding to GroundUp on Wednesday, Uber acknowledged the ongoing protest, stating that the company had measures in place to minimise disruptions. Uber said it is committed to maintaining open communication with drivers and expressed their goal of creating a “collaborative ecosystem” for all parties involved.

On 19 September (after publication) inDrive said it supported the drivers’ demands for fair pay, better working conditions, and improved safety.

“We stand with drivers in their call for fair pay.” inDrive said their fare negotiation model allows drivers to set their own prices, giving them more control over earnings.

The company said it is talking to drivers to better understand their challenges, and aims to find solutions that improve welfare and safety.

“We welcome opportunities for dialogue with the government and key stakeholders to address the broader industry challenges,” inDrive said.