Cab services Uber and Taxify took to the streets of Green Point on Tuesday as they protested against the percentage tariff that they are charged for each ride.
Drivers are disgruntled at the net profit that is made for each ride, owing to the 25% take away by Uber for each ride. The recent increase in fuel prices spurred a previous strike in Johannesburg and has now made its way to Cape Town. The strike took place on Tuesday morning, and was ongoing as Taxify and Uber drivers face altercations with Traffic officials.
The drivers took to the streets to display their frustration and are caused an up roar in traffic – protestors made their way from Green Point Stadium into the CBD, causing several road blocks.
As reported by EWN, an Uber driver stated “The condition is time-based tariffs… any type or form of charging is strictly prohibited in terms of this permit, but Uber refused to increase their prices for the past five years.”
In the clips below, supplied to Cape Town Etc, the tension rose due to the protest and ongoing through out the CBD area. Uber drivers have been hooting in solidarity of those that are in the protests and wanting to gain attention on their current crisis.
— Ishani Chetty (@ishani_chetty) June 26, 2018
Uber has also said that it may not be as readily available on your next trip to work – the recent increase in fuel prices is making it harder for drivers to keep their vehicles running.
Uber is tackling the fuel increase by providing a number of incentives for Uber drivers to save on costs. Drivers, however, are disgruntled by the 25% service fee charge by Uber. Their profits are decreasing because of the service charge and the steep increase in fuel prices. Another fuel price increase is expected in July, making it the fourth increase this year.
Uber has responded to the recent events and indicated that they are ill tolerant of any violence carried out by either the driver or the client, General Manager for Uber Sub-Saharan Africa, Alon Lits reiterated this as he stated, “We have a zero tolerance policy towards violence and intimidation of any kind and this goes against our community guidelines. If any Uber driver is found to be involved, they will immediately lose access to the Uber app”.
Lits went on to state that Uber is working to creating a profitable service for both client and a driver, “We constantly monitor fares and examine price sensitivities to ensure fares are correctly priced so that riders continue to take trips and drivers have access to more fare paying passengers”.
Taxify South African manager Gareth Taylor indicated that they strive to keep their prices low and provide fair and equitable opportunities for their drivers as he stated, “Taxify drivers nett 85% of the fare paid by riders – a significantly higher percentage than drivers that use other platforms to connect with riders”.
In order to compensate for the ogling fuel increase, Taylor stated, “Trips will be calculated at R0.70 per minute, and the cost per kilometre is now R7.00. The base fare of R5 remains unchanged, as does the minimum fare of R20”. He further indicated the impact this will have on drivers, “This small change to rider costs will have a major impact for the Taxify drivers, who will now on average earn 13% more than drivers using competitor platforms”.