South Africa E-Hailing Market Size, Share, Opportunities, COVID-19 Impact, And Trends By Vehicle Type (Four-Wheeler, Two and Three-Wheeler), By Mode Of Payment (Online, Offline), And By City - Forecasts from 2022 To 2027

The South Africa e-hailing market is projected to grow at a CAGR of 17.45% over the forecast period, increasing from US$1,380.069 million in 2025 to US$3.084.741 million by 2030.

 E-hailing is a service with offers that help consumers book public services through electronic applications offered by multiple companies. This service offers multiple benefits to the consumers, as they offer convenient booking for the rides through their smartphones. Ride-hailing services also offer a cost-effective and efficient mode of transportation for consumers.

The growth of smartphone and internet users among the total population of the nation is estimated to boost the growth of e-hailing services. The South African Government News Agency, in its report, stated that in 2022, about 92.1% of the country's households own cell phones. Similarly, the extensive use of the internet among the nation's population is expected to boost its e-hailing service market growth. The International Telecommunication Union (ITU), in its global individual using the internet statistics, stated that 74.7% of the population in the nation had access to the internet.

 What are the drivers of the South African e-hailing market?

• The growing tourism sector in the nation is anticipated to fuel the South African e-hailing market expansion. 

One of the major driving factors for the South African e-hailing market’s growth is the rising tourism in the nation. The growth of the tourism sector of any nation plays a critical role in the development of the e-hailing market in that nation. The availability of efficient e-hailing services in the nation attracts new tourists, as it offers a cost-effective mode of transportation services in the nation.

The Statistics of South Africa, in its tourism report, stated that the nation's tourism sector witnessed major growth in the recent few years. The agency further stated that in 2021, the total tourist arrival in the nation was recorded at about 4,675 thousand travelers, which grew to about 11,540 thousand travelers in 2022 and about 16,073 thousand travelers in 2023. 

• The increasing demand for the four-wheeler vehicle is anticipated to expand the South African e-hailing market expansion. 

The IT and telecommunication segment is experiencing significant growth within the global tax and the rise of market competition between major players and the launch of various services by e-hailing companies has surged the market’s revenue. The rise in the adoption of smartphones has revolutionized e-hailing, making it simpler for consumers to access and utilize services. User-friendly apps and GPS integration have streamlined booking strategies. Moreover, rapid urbanization and increasing commuting needs have driven the demand for better and more convenient transportation alternatives. According to the World Bank Group data on the urban population in South Africa, it is expected to increase consistently, which accounts for 41.576 million in 2023, a rise from 40.928 million in 2022.

Moreover, to enhance the customer experience in the country, several companies have launched fresh products and services that have additionally contributed to the market’s development in the upcoming years. The regional companies are also launching to work for the South Africa region as well as compete with the international players. 

Additionally, passengers are provided with more premium service, with qualified drivers and newer model sedans or SUVs that provide greater comfort and space on a journey. Traffic blockage in major cities has made public transportation less proficient, resulting in consumers moving towards e-hailing solutions. The rise of remote work and adaptable work hours has expanded the requirement for on-demand transportation. As living costs increase, customers are looking for more reasonable options like four-wheelers in the coming years.

• The expanding use of online payment modes is predicted to promote the South African e-hailing market expansion. 

The growing penetration of the internet across different cities of South Africa represents growing prospects for expansion of the e-hailing market in the country. For instance, as per GSMA, the data traffic and smartphone adoption across South Africa is anticipated to reach around 76% by 2025 from 67% in 2021. It is higher in comparison to countries such as Kenya and Nigeria, where it is expected to be 68% and 64%, respectively, by 2025.

Further, the convenience of online payment to South African consumers and businesses with e-hailing apps will propel this industry’s expansion in the country. In addition to this, due to the quick payment mechanism and low transaction costs, the popularity of online payment methods will grow multifold in the coming years. For instance, in 2022, a MasterCard report indicated that around 95% of consumers preferred using at least one digital payment method in South Africa. Moreover, the country's growing e-hailing industry has been boosted by South Africa's expanding automobile industry.

Furthermore, initiatives by key companies in the e-hailing sector to promote advancement in their offering in South Africa will drive market growth in the forecast period. For instance, in 2022, in order to improve customer satisfaction overall, Bolt in South Africa introduced driver trip-sharing features and in-app driver scores. This measure is expected to enhance the overall quality and performance of service delivery of the e-hailing company. Besides, unique intervention in the country will increase the presence of online platforms for e-hailing, offering numerous options to customers in South Africa. For instance, Kgosigadi Rides, launched in 2024 as an all-female e-hailing taxi platform, targets to provide safe transportation solutions to women across South African cities.

Recent developments in the South Africa e-hailing market:

• April 2024- Shesha, a South African e-hailing app, was introduced in Johannesburg, collaborating with minibus taxis and e-hailing administrators. The service, set to compete with global giants like Uber and Bolt, guarantees progressed security for passengers, especially women. Fingerprint ID is offered to both the drivers and passengers. Shesha plans to partner with local taxi affiliations, incorporating the South African National Taxi Council and National Taxi Alliance. The service is anticipated to begin working in May, shared on SABC.

The South Africa e-hailing market is analyzed into the following segments:

• By Vehicle Type
  • Four-Wheeler
  • Two and Three-Wheeler
• By Mode of Payment 
  • Online
  • Offline
• By City 
  • Cape Town
  • Johannesburg
  • Gqeberha
  • East London
  • Durban
  • Others

1. INTRODUCTION

1.1. Market Overview

1.2. Market Definition

1.3. Scope of the Study

1.4. Market Segmentation

1.5. Currency

1.6. Assumptions

1.7. Base and Forecast Years Timeline

1.8. Key benefits for the stakeholders

2. RESEARCH METHODOLOGY

2.1. Research Design

2.2. Research Process

3. EXECUTIVE SUMMARY

3.1. Key Findings

3.2. Analyst View

4. MARKET DYNAMICS

4.1. Market Drivers

4.2. Market Restraints

4.3. Porter’s Five Forces Analysis

4.3.1. Bargaining Power of Suppliers

4.3.2. Bargaining Power of Buyers

4.3.3. Threat of New Entrants

4.3.4. Threat of Substitutes

4.3.5. Competitive Rivalry in the Industry

4.4. Industry Value Chain Analysis

5. SOUTH AFRICA E-HAILING MARKET BY VEHICLE TYPE

5.1. Introduction

5.2. Four-Wheeler

5.3. Two and Three-Wheeler

6. SOUTH AFRICA E-HAILING MARKET BY MODE OF PAYMENT

6.1. Introduction

6.2. Online

6.3. Offline

7. SOUTH AFRICA E-HAILING MARKET BY CITY

7.1. Introduction

7.2. Cape Town

7.3. Johannesburg

7.4. Gqeberha

7.5. East London

7.6. Durban

7.7. Others

8. COMPETITIVE ENVIRONMENT AND ANALYSIS

8.1. Major Players and Strategy Analysis

8.2. Market Share Analysis

8.3. Mergers, Acquisitions, Agreements, and Collaborations

8.4. Competitive Dashboard

9. COMPANY PROFILES

9.1. Uber Technologies Inc

9.2. Bolt Technology OÜ

9.3. Yookoo Ride

9.4. Yo!Taxi

9.5. t-Drive

9.6. NextNow Group (Pty) Ltd

9.7. Shesha

9.8. DiDi Global

LIST OF FIGURES

LIST OF TABLES

Uber Technologies Inc

Bolt Technology OÜ

Yookoo Ride

Yo!Taxi

t-Drive

NextNow Group (Pty) Ltd

Shesha

DiDi Global