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No common ground in e-hailing mediation meetings

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 29 Aug 2022

E-hailing operators and drivers say their hopes were dashed following mediation meetings with e-hailing industry stakeholders and an appointed mediator last week.

The Gauteng e-Hailing Partners Council (GEPCO) and executives of e-hailing firms Uber and Bolt have from the beginning of this month been in talks. The conflict resolution process was expected to result in the parties reaching an agreement in relation to several contentious industry issues.

The mediation process kick-started with a preliminary two-day meeting, following a series of previous engagements between the Gauteng Department of Roads and Transport, and affected parties, to find sustainable and amicable solutions to their challenges.

These include what they label “exploitation”, low wages, safety issues, rider fare structuring and the urgent need for regulation of the sector.

The first phase of the mediation process, which took place on 25 and 26 August, focused solely on pricing and commissions, facilitated by mediator advocate Jenine Khan.

In a statement, the GEPCO explains it was left hopeless and disappointed when its list of demands fell on deaf ears – no agreement was reached in terms of the request to increase pricing for the various services offered on the Uber and Bolt e-hailing apps.

One of the body’s key requests to the e-hailing management was for the disbanding of the dynamic pricing structure. The organisation urged the e-hailing firms to re-instate the initial pricing set-up, comprised of a base fare, plus minimum fare at 3km radius plus dispatch beyond 3km radius. They also want the fare amount to be charged per kilometre and per minute.

“Uber told the GEPCO members that it is not in a position to change its dynamic pricing system. They also refused to reveal all their pricing figures – a sign of lack of transparency. While Bolt’s pricing structure is not dynamic but fixed, they told us they have a surge pricing model, which only takes the fares up and not below the base/floor amount,” says Melithemba Mnguni, provincial secretary of the GEPCO.

“Whenever there is a dispute between parties and a process of mediation is initiated, the aggrieved give their tormentors a benefit of a doubt and hope for the best, but we didn't get what we asked for, or anything close to it.

“This outcome proves what we have always said about Uber and Bolt – they do not value us drivers and owners.”

The second phase of the mediation process – expected to focus on the rest of the issues – will take place in the last week of September.

Melithemba Mnguni, brother of murdered Euston Mnguni and secretary of  the e-Hailing Partners Council.
Melithemba Mnguni, brother of murdered Euston Mnguni and secretary of the e-Hailing Partners Council.

Unhealthy working relationship

Among the list of other demands, GEPCO had requested for driver commission to be reduced to 10% and for booking fees to be charged as part of the service, not separately. Once, again there was no agreement reached.

Bolt charges drivers 23% commission and a booking fee of 4%, while Uber charges drivers a 25% commission and a booking fee of 4%.

“In response, both e-hailing firms noted that accounting practices require the line items to be shown separately. Uber clarified that the 4% booking fee is charged to riders and it covers their insurance. Bolt noted it will consider and find a way of putting it all together and break it down clearly.”

Also requested by the GEPCO was the re-introduction of the live billing feature, which would provide transparency on the duration (per minute) and distance (km) travelled in real-time.

The also demanded the cancellation fee be charged according to the distance travelled by the driver, instead of the current standard fee.

In response, Uber and Bolt said they can’t re-instate the live billing. However, in terms of the cancellation fee, Uber has already activated this feature and Bolt is current trialling it, with feedback to be provided to drivers in the fourth quarter of the year, says the statement.

“The GEPCO team did everything possible to highlight the challenges faced by drivers based on experience, supporting evidence and scientific calculations (spreadsheet presentation), and the analysis of mediation outcomes is further evidence that there is no healthy partnership in place between these app companies, and drivers and owners.

“Those who thought this could be fixed should be satisfied that it can’t be fixed and those who had foresight that this can’t be fixed should support and welcome the others and forge a united front to transform the industry. A proposed mass meeting in September is envisaged to continue with mediation consultations and to make an informed decision on the future,” says GEPCO.

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