A preliminary report into land-based public passenger transport by the Competition Commission has found that Uber drivers are earning a lot less than what they were in 2013.
The commission says for short distances less than 2km, drivers were earning R85 that year.
It says there appears to a decline in those earnings from 2013 until November 2019, with drivers earning R25 per trip, which is less than 2km.
The Competition Commission's principal legal counsel, Jabu Ngobeni, lists some of the possible reasons for the decline.
The operators were saying to us is that at the beginning they were given various incentives to join the platform and when e-hailing operators submitted evidence before us they said that now that they have the numbers and there are many customers who have now downloaded the app and using it as frequently as possible, there is now need for the incentives advanced by the operators in the beginning.— Jabu Ngobeni, Principal legal counsel - Competition Commission
He says Bolt (Taxify) has also been affected.
In fact, for both Bolt and Uber, we have seen a decline because even when Bolt joined in 2016, we see the commission they were charging was 5% and they have now increased what they charge to operators to 20%, which means what is paid to the driver becomes less than what he was actually getting when Bolt launched.— Jabu Ngobeni, Principal legal counsel - Competition Commission
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