At a time of unprecedented economic uncertainty and with inflation peaking around the world, flexible work on platforms like the e-hailing applications was becoming more important than ever, says Kagiso Khaole, the general manager for Uber sub-Saharan Africa.
He said that the value of the platform economy in general was that it offered a level of flexibility and access that could supplement incomes in times of crisis.
“Domestically, we want the best for all earners and merchants who operate on the Uber platform and rigorously engage with them through various channels, including roundtables and surveys, to better understand the realities they face on the ground when it comes to safety and earnings. This results in a number of business strategies and initiatives that enable us to navigate this time of uncertainty in all its different forms,” Khaole said.
The GM said that the ride-hailing industry was growing and had transformed how citizens explore and discover their cities.
He said their company’s global scale and unique platform advantages positioned them well to accelerate this momentum into this year.
“Since our launch in SSA (which includes South Africa, Ghana, Nigeria, Ivory Coast, Kenya, Uganda, and Tanzania), Uber has worked with cities by providing improved mobility options, economic contribution through flexible earnings for drivers and contribution to government revenues,” he said.
“Uber is geared to continue to be customer obsessed and will continue innovating across Africa as part of its commitment to attracting more users so that earners have more earnings opportunities while continuing to raise the bar on safety for all.”
The technology company said that globally, it ended last year with its strongest quarter ever, having seen robust demand and record margins with a 110% increase in revenue year-on-year across Europe, the Middle East and Africa (EMEA).
“We are proud of the strong imprint our work has left in the Africa region over the last few years – from supporting communities during the pandemic through innovative products and grassroots partnerships, to working with key industry players at all levels to help make ride-hailing more convenient, affordable, safe, and sustainable. We are certainly excited about the future, especially because this year we will be celebrating our 10th year anniversary in South Africa,” Khaole said.
Uber said that the prevailing energy crisis in South Africa was a serious issue because it affected both riders and drivers in their personal and professional lives.
It said that it saw the efforts government departments, cities and the private sector were making to address this issue.
“Governments are investing in IPPs (independent power producers), cities are making their own commitments and strategies to reduce reliance on the grid, and the private sector is bringing innovative solutions for access to renewable energy through subscriptions, supplementary energy and so on. All of these set the scene for an energy-resilient future.”
Khaole said that the energy crisis affected access to telecommunication networks, which affected maps, routes and experiences.
“However, on our platform the map remains available even when connectivity is lost in most cases. We have an Uber-Lite app available for download, which is quite useful when internet connectivity is not strong enough. We are also receiving input from drivers, delivery people and restaurants about their experiences with the energy crisis and making efforts to resolve them,” Khaole said.
“We do think there are sustainable ways to power our communities’ needs, such as the need to power cellphone towers, and renewable energy is one of them. Businesses need a long-term solution and while we know it comes at a cost, we believe that renewable energy is the answer,” he said.
Khaole said that their global vision was to be 100% electric by 2040, and Africa was part of this story.
In its market forecast for the ride-hailing and taxi segment for South Africa, Statista said that revenue was projected to reach $0.86 billion this year.
It said revenue is expected to show an annual growth rate (CAGR 2023-2027) of 1.29%, resulting in a projected market volume of $0.91bn by 2027. In the ride-hailing and taxi segment, the number of users was expected to amount to 7.1 million users by 2027.
Below are some fun facts from Uber (Data from 2022)
● Uber is available in over 61 cities across seven countries in SSA.
● Uber has facilitated one billion trips in Africa since entering the market in September 2013.
● Over 10 billion kilometres of trips have been completed, equivalent to travelling to the moon and back over 5 500 times.
● During the same period Uber and Uber Eats have collectively reached over 30 million riders and eaters in sub-Saharan Africa.
● Uber has created more than three million economic opportunities for drivers and delivery people across sub-Saharan Africa.
● Uber monitors continuous growth on its platform and today it has more than 72 000 active drivers across SSA.
● It has over 2.1 million active platform users.
BUSINESS REPORT