Uber South Africa’s drivers and delivery couriers earned a combined R2.3 billion in 2023, with earnings made possible through the e-hailer’s app-based, flexible earning model.
This is according to Uber’s first Economic Impact Report for South Africa, which reveals its ecosystem’s contribution to the economy, individuals seeking earning opportunities and local communities in 2023.
Uber commissioned independent research consultancy Public First to demonstrate the company’s ripple effect for consumers, drivers and merchants, as well as for the wider economy.
The findings were revealed yesterday at a media briefing, in Johannesburg.
According to the report, transportation and delivery services organised via the Uber platform contributed an estimated R17 billion to SA’s economy, representing 3.5% of the transport sector’s total economic output.
In total, more than one million direct and indirect economic opportunities have been created through the ecosystem, since Uber’s entry into the South African market in 2013, it says.
Drivers earned an average of 57% more than their next best alternative employment opportunity, it says.
Uber is now accelerating its e-mobility strategy across SA, premised on promoting employment for the youth, including those in township economies – known as the country’s economic heartland.
Employment emergency
Nakampe Molelwa, GM for Sub-Saharan Africa at Uber Eats, says the company has been on a continuous journey to train more unemployed youth to work on the platform.
“We all know that unemployment in South Africa is high. Our partner Harambee conducted a study which shows that out of the millions of job-seekers that come into the market annually, 600 000 never get jobs – so it’s a definition of a crisis,” Molelwa noted.
“The year-on-year percentage growth in the number of independent contractors with Uber is between 7% and 9%, and we are cautiously empowering youth to achieve financial stability on their own terms.
“Through the information garnered from the survey of drivers and couriers, Public First is able to calculate not only their earnings but also the multiplier effect to the economy, calculated through the economic models – and that’s how it got to the R17 billion [contribution to SA’s economy]. This looks at the drivers’ and couriers’ income and how much they are spending on things like their vehicles, lifestyle, school fees, etc.”
The study used various methods to explore Uber’s impact. Public First ran an in-depth nationally-representative online consumer poll of 1 000 adults in SA to explore their travel and food ordering habits. The firm also ran an in-depth online poll of 508 drivers and delivery people in SA, to explore their experiences and attitudes.
Public First then created new quantitative models of the economic impact, time saved, and consumer surplus and driver value created by the Uber app.
According to a report by the Fairwork Project, the platform economy in SA is playing an important role in reducing unemployment in various industries, providing critical income opportunities for an estimated 135 000 gig workers, or 1% of the employed population in SA’s e-hailing, e-commerce, entertainment and online delivery services.
The gig economy provides more choices and convenience for services offered via platforms, and generates more efficient and more adaptable services for app-based companies, it says.
Uber is available in over 60 cities in Sub-Saharan Africa and across all nine provinces in SA.
Last year, the company embarked on a job creation initiative across Gauteng townships, in a move to help create 10 000 jobs for township-based youth over the next three years, through Uber Eats.
The project, in which the e-hailer invested R200 million, is part of a strategic partnership forged with the Gauteng Provincial Government through the Gauteng Department of Economic Development.
So far, 2 000 new jobs have been created, notes the Uber SA report.
“Our approach to the creation of economic opportunities is two-fold. The first is to tap into Harambee’s database of millions of young people who are looking for work. Secondly, the Gauteng Department of Economic Development partnership is exclusively focused on young South Africans across Gauteng townships,” says Molelwa.
“We have really only started to scratch the surface. The aim is to have 30% or 40% of couriers on the Uber Eats platform consisting of youth, within the next five years.”
The e-hailer has set a target to digitise 700 qualifying restaurants, and retail and manufacturing SMEs across Gauteng townships, connecting qualifying businesses to a potential 160 000 new customers, leading to R200 million worth of economic activity within the target period.
The report found that beyond its contribution to transport, Uber SA was instrumental in catalysing growth across the food, retail, tourism and nightlife sectors in 2023, with 88% stating delivery apps such as Uber Eats helped them discover new dining options.
This support of local businesses and culinary entrepreneurs resulted in the generation of R1.6 billion for businesses and entrepreneurs listed on the Uber Eats platform.
Listed local merchants also gained data insights on customer preferences, popular items and peak ordering times via the app.
The local tourism industry also benefitted from Uber’s presence – with over R1 billion added in value, as a result of tourists in SA opting to use the e-hailer’s services to navigate the country.
“In total, we estimate that in 2023, the Uber app created R1 billion in additional value for the South African tourism industry. This is an additional 0.17% of the total tourism industry, and 1.05% of the total tourist foreign direct spend in 2023, which was R95 billion,” says the report.
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