Regulatory intervention is the solution to many of the issues plaguing the local e-hailing industry, says Shesha, South Africa’s newest e-hailing app.
The locally-developed app, which entered the market in April, says it has grown significantly since inception – reaching over 4 000 customers, with 5 000 drivers listed on the platform.
During an interview with ITWeb TV, Nomsa Mdhluli, spokesperson for Shesha, noted the company’s growth in a short timeframe reflects the need for a home-grown e-hailing firm that understands the diverse and dynamic needs of South African riders.
Mdhluli believes legislative intervention will resolve some of the challenges plaguing the industry.
Over the past few years, e-hailing drivers and operators have held protests, marching to the Gauteng Transport Department to protest poor working conditions, the lack of safety and security, and low wages.
The amended National Land Transport Act 5 of 2009 was signed into law by president Cyril Ramaphosa in June, bringing to an end a 13-year wait for the amended Bill, which brings the regulation up to date with digital economy developments since its implementation.
“Regulatory intervention will play an important role; it will create a sense of certainty and direction in the industry. In the past, some drivers have complained that an e-hailing service dropped the price to R1 per kilometre and that translates to low earnings for drivers,” commented Mdhluli.
“Regulation will ensure stakeholders are consulted before such decisions are made. Shesha views e-hailing drivers as major stakeholders, and they should be part of the decision-making processes.”
Shesha drivers earn the highest commissions compared to other e-hailing firms in SA, with drivers keeping 80% of the commission and the company collecting 20% earnings from each ride, she explained.
Rival e-hailers allow drivers to earn anywhere between 20% and 30% in commission.
The amended Act will ensure safety measures in the e-hailing industry, by introducing standard strict vetting procedures in the on-boarding process, to ensure drivers and riders don’t participate in criminality while using e-hailing apps, she added.
Shesha is founded by a consortium of stakeholders with experience in SA’s transport industry. These include the Gauteng arm of the South African National Taxi Council (Santaco), the Gauteng National Taxi Association and private sector organisations, with the support of the South African E-hailing Association and Gauteng Department of Transport.
E-hailing controversy
Since inception, the local e-hailing industry has been tainted by incidents of crime, violent attacks and drivers being accused of harassment, alleged rape of female passengers, and theft of passengers’ money and mobile phones.
“Lack of stringent vetting processes lies at the heart of many of the incidents we see in the local ride-hailing [industry]. Shesha has stringent on-boarding processes; our database is interfaced with the home affairs department database and that ensures we are able to accurately verify each applicant’s identity,” said Mdhluli.
“Thorough background checks are run; hence we have caught out prospective drivers who tried submitting falsified identity documents. Rider identity is also verified through the home affairs system.”
The Shesha app also has a biometric system, which ensures newly-registered people are who they say they are, she pointed out.
Rival metered taxi drivers have often been accused of being perpetrators of some of the violent attacks and crime incidents plaguing the industry. This is often as a result of the ongoing strife between meter taxis and e-hailing drivers in the war for commuters.
In recent developments, Shesha drivers have been accused of intimidation and extortion of Bolt and Uber drivers. This, after videos on social media show e-hailing drivers from Uber and Bolt allegedly being subjected to violence and intimidation from people purporting to be Shesha e-hailing drivers and Santaco community patrollers.
Portia Keleketu, project manager for Shesha, previously condemned the acts of intimidation, and said: “We need to reiterate that e-hailing drivers are independent operators and service numerous e-hailing platforms and that taxi drivers in no way, shape or form, form part of Shesha's operations.
“Unfortunately, some independent drivers have taken it upon themselves to embrace Shesha in an over-zealous fashion. Shesha categorically condemns these actions by independent operators, and does not condone nor support such actions.”
Santaco Gauteng told ITWeb it is conducting thorough investigations into the incidents.
Discussing future plans, Mdhluli said the e-hailer plans to introduce an iOS app, as well as expand its operations beyond Gauteng. “We are engaging transport stakeholders in other provinces, and as soon as we’ve concluded those discussions, a decision will be made on expansion.”
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