App-based ride services and the sustainability of metered taxis in South Africa

Abstract

Developments in technology have disrupted many industries. Companies can no longer afford to ignore such vital technology. Many people in South Africa believe that the entry of ride-hailing apps like Uber and Bolt threatens the future of the country's traditional taxi industry. The paper sought to ascertain the influence of app-based ride solutions on the sustainability of conventional metered taxis and the ensuing survival strategies. A hybrid approach using both qualitative and quantitative data was adopted. Twenty participants and 80 respondents provided the qualitative and quantitative data utilized. The results suggest high-quality services and comfort vehicles offered by app-based services like Uber and Bolt have harmed the long-term viability of traditional metered taxis in the Cape Town metropolitan area. Since the advent of app-based ride services (Uber and Bolt), metered taxi operators have faced new challenges, including technological advancement, the demand for high-end transportation, and changing consumer tastes. The research could be helpful to companies providing metered taxi services in Cape Town by pointing to ways to improve operations. Hopefully, the findings of this research will aid regulators and other interested parties in making it easier for taxi companies that use meters to compete. Theoretically, the study may also contribute to the literature on the subject.