2013
Uber launches in Johannesburg.
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The Impact of Uber in South Africa
Economic Impact Report 2023
Key Facts
Uber has played a leading role in driving the digital revolution in South Africa, introducing cutting-edge innovations in transportation and delivery. From Nelspruit to Cape Town, Uber seamlessly connects people in South Africa to their local area with just the tap of a button.
Having launched its presence in Africa in Johannesburg over a decade ago, Uber seeks to continuously improve people in South Africa’s lives. For this report, Uber commissioned independent research consultancy Public First to demonstrate the company’s impact for consumers, drivers and merchants, as well as for the wider economy.
As evidenced by this new qualitative and quantitative research, Uber significantly improves the daily lives of millions of people in South Africa. The Uber and Uber Eats apps create additional wealth for tens of thousands of drivers and delivery people, and deliver value to more than a thousand merchants – not to mention convenience, reliability and safety to its users.
Uber’s Economic Impact
Uber creates significant value for the South African economy, connecting people in South Africa to local businesses as well as providing new income streams for individuals and merchants alike.
Drivers & Delivery People
Uber is giving people in South Africa new opportunities to achieve financial freedom, by providing them flexible opportunities to boost their income as either a driver or delivery partner.
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bn
In 2023, we estimate that drivers earn an additional R2.3 billion a year in higher income through the Uber app.
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Flexibility has a financial value to drivers and delivery people. In total, we estimate that this increased flexibility is worth R1.4 billion to drivers and delivery people.
Local Businesses
Uber brings new revenue streams for local businesses in South Africa, by creating more avenues for them to reach a wider customer base.
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bn
In total, we estimate that, in 2023, Uber Eats created R1.6 billion in additional value for restaurants in South Africa by enabling them to leverage delivery as an additional revenue stream.
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bn
In total, we estimate that, in 2023, the Uber app created R1 billion in additional value for the South African tourism industry, supporting millions of tourist journeys.
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m
In total, we estimate that, in 2023, the Uber app supported R394 million in additional value for the nighttime economy in South Africa by allowing many people in South Africa to reach their local bars, clubs and restaurants late at night.
Consumers
Uber makes life more convenient for people in South Africa. The Uber app helps them to reach their destination faster, whilst the Uber Eats app ensures easier access to food and essential items, delivered to wherever they are.
0
%
of riders say that convenience is an important reason they use the Uber app.
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m
The Uber Eats app saves consumers over 12.7 million hours a year by bringing food and groceries directly to their door – equivalent to listening to Kabza De Small’s entire discography 330,000 times.
Safety
Uber provides people in South Africa with a safer transport option, giving them the confidence to travel around their city – particularly late at night.
0
%
of riders told us that without ridesharing services it would be very or somewhat difficult to find a safe way to travel at night.
0
%
of riders agree that the Uber app helps reduce drunk driving in an area.
Foreword
South Africa’s economy, often described as one of the most diverse and dynamic on the African continent, is characterised by a mix of modern infrastructure, vibrant industries, and a burgeoning digital economy juxtaposed with deep structural inequalities and persistent challenges such as unemployment and poverty. Defined by a resource-rich foundation and strong manufacturing sector, its growing focus on technology, innovation, and entrepreneurship has positioned the country as a key player in the broader African and global economic landscape.
Since Uber launched in the country a decade ago, not only have we helped to provide people in South Africa with a safe, reliable and secure way to move around with a simple push of a button, but we’ve also enabled more than 100,000 economic opportunities in the country, empowering both drivers and delivery people to earn money on their own terms while creating additional value through new revenue streams for local businesses.
Over the past year, I am proud to say that we have been able to contribute an estimated R17 billion to South Africa’s economy. We have also empowered drivers and delivery people to earn an additional R2.3 billion a year in higher income through the use of the Uber app, while Uber Eats has created an estimated R1.6 billion in additional value for restaurants across the country.
Uber’s emphasis on safety and vehicle standards has significantly enhanced the safety and accessibility of transportation in South Africa. By providing safer travel options at night, especially for women, Uber is contributing to a more secure environment for all riders while helping to ensure that roads are safer by reducing drunk driving.
Through the Uber Eats platform, we have been able to bring substantial value to restaurants and merchants by expanding their reach to a wider customer base. Meanwhile, access to data revealing insights such as customer preferences, peak ordering times and popular items, has enabled merchants to optimise their offering and tailor their business strategy to meet customer needs. This has helped to boost the local economy while supporting small businesses by providing them with efficient and scalable delivery infrastructure.
Uber’s continued commitment to innovative mobility and delivery solutions that unlock growth and development opportunities for the people, communities, and economies we serve is exemplified in the expansion of our products and services which have evolved to meet the unique needs of people in South Africa. This, along with our dedication to sustainability, led to the launch of the country’s first electric mobility product, aligning with both South Africa’s National Framework for Sustainable Development and Uber’s global target of becoming a zero-emission platform by 2040.
As Uber embarks on its next decade in South Africa, our commitment to making a positive impact on individuals, communities, and the economy remains unwavering. We will continue to introduce innovative features and products that redefine mobility, expand opportunities in the retail sector, and promote sustainability.
Sincerely,
Frans Heimstra
Regional General Manager for
Uber Middle East and Africa
Nakampe Molewa
Regional General Manager for
Uber Eats Sub-Saharan Africa
Introduction
The Transformational Effect of App-Based Rideshare & Delivery Platforms
The digital revolution is powering South Africa
South Africa’s digital transformation has fundamentally transformed the nation’s economy.
South Africa is home to one of the largest ICT markets in Africa, valued at over R582 billion or US$33 billion in 2022 and is expected to grow to nearly R882 billion or US$50 billion by 2027.1 2 This growth comes from the enterprising and industrious culture of South Africa, being ranked as the top innovating mainland country on the African Continent.3 A recent report reveals that the digital platform economy could grow from contributing 0.02% of GDP in 2022 to 1.38% by 2035 – injecting at least R91.4 billion into the economy.4
Sweeping digitisation has, in turn, changed the daily lives of South African citizens. Internet usage has grown from just 10% of the population in 2009 to 72% in 2021, allowing more people in South Africa to learn, earn, and connect with each other.5
In particular, widespread adoption of mobile and internet technology has facilitated a thriving platform economy in South Africa. Rideshare and delivery apps have created new opportunities for South Africa’s young, tech-savvy and urban population to live and work, with new innovations coming to market on a regular basis.
The invention of Uber
For over a decade, Uber has been an essential part of the global transportation industry – now operating in over 70 countries and more than 10,000 cities. With a mission to help people go anywhere and get anything, Uber’s quick, reliable and affordable services connect the physical and digital worlds through a simple application.
Maximum Convenience:
Users can place orders whenever it suits them and then track their ride or delivery journey, eliminating any uncertainty about waiting times or travel routes.
Economic Opportunity:
Drivers and delivery people benefit from flexible income, and can easily connect with riders and delivery requests. Local businesses enjoy increased access to prospective customers, either through delivery requests or improved mobility options that drop riders directly at their doorstep.
Simplified Navigation:
In-app GPS simplifies navigation for drivers and delivery people when travelling to new destinations. This built-in feature ensures that they can find the quickest and most efficient journeys, enhancing the rider’s experience.
Integrated Payment Options:
The app’s integrated payment system reduces concerns about keeping track of unexpected costs. Users can enjoy a hassle-free payment experience, while drivers, delivery people and merchants benefit from streamlined transactions.
Enhanced Safety and Experience:
Riders, drivers, and delivery people benefit from a range of functions that improve their overall experience and safety. These features encourage better service, accountability, and continuous improvement of the platform’s offerings.
Uber’s Impact in South Africa
Uber chose South Africa as the site of its initial expansion into Africa, launching in Johannesburg in 2013. Ten years later, the Uber app now operates in 25 different locations across South Africa, providing riders with a fast and reliable way of getting to their destinations and allowing consumers to order food and groceries directly to their front doors.
Rides
UberX
Original Rideshare Option
UberXL
Bigger Car Option
Uber Van
Premium Van Option
Uber Comfort
Premium Option
UberGO
Affordable Option
Uber Assist
Accessible Option
Uber Black
Premium Rides
Uber for Business
Corporate Account Option
Delivery
Uber Eats
Food, Grocery & Retail Delivery
Uber Package
Package Delivery
Uber Direct
White Label Delivery Solution
Timeline
2014
Uber expands to Cape Town, Durban, and Pretoria.
2015
Uber launches a more accessible cash payment option.
2016
Uber Eats is launched in South Africa
2020
Uber Direct is launched during the pandemic to support grocery deliveries and discounted trips for healthcare workers.
2021
Uber offers discounted trips to vaccine centres.
Uber crosses 1 billion rides in Africa, and launches two new products - Uber Package and Uber Travel - and a new Audio Recording safety feature.
Uber launches UberOne, a membership scheme and enters a government partnership to digitise township economies.
Since launching in the country, Uber has helped to drive tech-enabled prosperity for the nation. Every time the Uber Eats app facilitates a food delivery in Durban or the Uber app enables holiday makers to explore the Garden Route, it contributes to South Africa’s economy.
In order to fully examine Uber’s impact in South Africa, Public First performed a number of calculations to capture its contributions. This included independent consideration of driver, delivery people and merchant earnings on the Uber platform, as well as the wider indirect and induced multiplier effect created throughout the platform’s wider activities.
Overall, we estimate that Uber contributed a staggering R17 billion to the South African economy in 2023. This is equivalent to 3.5% to the transport, storage and communication sector worth R487 billion in Gross Domestic Product.
But this doesn’t tell the whole story. On an individual level, Uber significantly improves the daily lives of millions of people in South Africa as evidenced by new qualitative and quantitative research while simultaneously generating additional wealth for tens of thousands of drivers and delivery people, delivering value to business owners across the country, and providing invaluable convenience, reliability, and safety for users.
Uber’s Impact:
Drivers & Delivery People
Uber creates new opportunities for people in South Africa to get ahead
People in South Africa have a strong entrepreneurial spirit, with around a fifth of adults acquiring additional income through some kind of “side hustle”.6 By the end of 2023, 19% of the labour market were actively working in the informal sector, equivalent to 3.2 million people.7 Side hustling is a helpful strategy for people in South Africa looking to improve their financial situation or balance various responsibilities while also serving a key role in the region’s economic resilience. The informal economy operating across sub-Saharan Africa unlocks diverse earning opportunities and protects economies from economic shocks.8
The Uber app plays an important role in the gig economy, helping people in South Africa to earn money on their own terms. Drivers and delivery people can choose how, when and where to accept trips and deliveries. The platform also offers a range of benefits that other side hustles don’t, such as globally backed safety features, driver’s insurance, and fast, reliable pay.
This is all the more important in the context of South Africa’s high unemployment rates. Almost a third of the population is struggling to find work, rising to half of young individuals aged 15-34. App-based work is a straightforward way for people to access quick and reliable income and to help them feel more financially secure.
Why do individuals choose to earn through the Uber app?
People enjoy earning through the Uber platform. Of the participants in our research, 72% of drivers and delivery people felt positive about Uber’s platforms, compared to just 14% who said they felt somewhat or very negative.
We wanted to understand what had originally motivated drivers and delivery people to start earning through the Uber and Uber Eats apps. We found that:
0
%
of drivers and delivery people chose to drive or deliver with Uber and Uber Eats over other earning opportunities because of the ability to be their own boss.
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%
of drivers and delivery people chose to drive or deliver with Uber and Uber Eats over other earning opportunities because of the more flexible schedule.
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%
of drivers and delivery people chose to drive or deliver with Uber and Uber Eats over other earning opportunities because they enjoy driving.
Thinking back to your initial decision, which of the following were important reasons why you chose to drive or deliver with Uber or Uber Eats as opposed to other earning opportunities?
How does Uber enable more people to earn a living?
Many people in South Africa are worried about their personal finances. According to our survey, 24% of the respondents reported that they struggle to make ends meet, and a further 36% said they only have enough money to cover the essentials. This is then compounded by the difficulties that many people face in finding reliable employment.
Our research is clear that income from app-based delivery platforms has made a real difference to their lives – both in terms of meeting immediate costs, and saving for the future. The Uber app has provided people with a way to achieve financial security on their own terms. 75% of drivers and delivery people reported that the rising costs of goods and services were a key reason why they chose to start using the platform.
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%
of drivers and delivery people have used earnings from the Uber and/or Uber Eats app to cover the cost of their bills.
0
%
of drivers and delivery people agreed that their earnings through the Uber and/or Uber Eats app have made them feel more financially secure.
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%
of drivers and delivery people agreed that additional earnings provided by apps have allowed them to save a financial cushion.
Moreover, Uber’s platforms provide a particularly helpful income stream when individuals are faced with an unexpected change in their circumstances. Our research found that:
0
%
of drivers and delivery people agreed that app-based work helped them to make money in an emergency situation.
0
%
of drivers and delivery people reported that operating on the Uber or Uber Eats apps has helped them to get through a period of unemployment.
0
%
of drivers and delivery people reported that app-based work has served as a “bridge” between losing one job and gaining another.
In total, we estimate that drivers earned an additional R2.3 billion a year in higher income through the Uber and Uber Eats apps in 2023. This is a significant uplift, supporting people in South Africa to live more comfortably.
How does Uber empower individuals to be their own boss?
The Uber platform offers drivers and delivery people significant flexibility to earn money on their own terms. This is particularly important for those who are juggling busy personal and professional lives.
When asked about their lives beyond app-based work:
0
%
of drivers and delivery people reported having at least one other responsibility.
0
%
of drivers and delivery people agreed that the flexibility provided by app-based work makes it easier to balance family and other work responsibilities.
What other responsibilities do you combine with your app-based work, if any?
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Beyond flexibility, our research found that drivers enjoy the autonomy and entrepreneurial opportunities associated with operating on the Uber app.
0
%
of drivers and delivery people agreed that app-based work gave them a feeling of independence.
0
%
of drivers and delivery people agreed that driving with the Uber app makes them feel like an entrepreneur.
The majority of drivers therefore said that they would rather retain the right to choose their own hours, even if the alternative was an increase in earnings. Having calculated the earnings that drivers and delivery people would sacrifice to retain control over their schedule, we estimate that the increased flexibility offered by Uber was worth R1.4 billion to drivers and delivery people in 2023.
Uber’s Impact:
Local Businesses
Uber’s technology boosts local economies across the country
The digital transformation in South Africa is helping to take the country’s R33 billion hospitality sector to new heights.9 Local businesses have the chance to harness the power of online platforms to reach new customers and improve their operations.
The Uber Eats app has made it easier for people in South Africa to order food and other essential items from local businesses. Families and friends can have everything from gourmet cuisine to medical supplies delivered with a few taps on their phones.
Meanwhile, the Uber app is connecting riders with their local communities like never before. Riders can take advantage of South Africa’s vibrant restaurants, clubs and bars, with the confidence that they have reliable and safe travel options late into the night.
How does the Uber Eats app support restaurants and merchants?
By increasing mobility and the accessibility of physical goods, Uber generates additional economic value to other South African restaurants and merchants. Benefits include:
Diverse Income:
Without expanding their physical footprint, restaurants and retailers gain additional revenue streams, helping to sustain the business during off-peak hours or when their physical capacity reaches its limits.
More Orders:
Apps like Uber Eats allow customers to order from their favourite businesses without having to leave their homes. This greatly increases the number of orders and volume of sales merchants receive, as consumers have found it easier to access their products.
New Customers:
The Uber Eats app creates huge visibility for merchants, by connecting their businesses to thousands of users who can discover their food or products. This has a huge impact for SMEs, who don’t have the resources for extensive marketing campaigns.
Logistical Support:
The Uber Eats app handles logistics, such as order processing and delivery. This means staff in the merchant locations can focus on what they do best, and creates a more efficient streamlined service for the customer.
Data Insights:
Merchants benefit greatly from the access to data that Uber Eats gives them. Analysing customer preferences, peak ordering times and popular items can help them to tailor their business more effectively to their consumers.
By leveraging the reach, convenience, and operational support of food delivery apps, merchants are able to enhance their revenue potential and grow their business more effectively. In total, we estimate that Uber Eats created R1.6 billion in additional value for restaurants in South Africa in 2023.
Our research found that:
0
%
of adults in South Africa agree that food delivery apps make it easier to discover new restaurants.
0
%
of adults in South Africa have ordered from a restaurant they have never dined at before via a food delivery app.
0
%
of adults in South Africa say that they have dined at a restaurant for the first time after ordering from them via a food delivery app.
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%
of adults in South Africa agree that there is a wider choice of restaurants in their local area now than before food delivery apps were introduced.
0
%
of adults in South Africa agree that food delivery apps have increased the overall amount they order from restaurants.
Zondo Chillspot
Tinashe Chinyanga has run Zondo Chillspot for over four years, serving African cuisine such as beef steak and boerewors to customers in Johannesburg.
Tinashe first partnered with Uber Eats because he wanted to grow his customer base from beyond his local area. Uber Eats allowed Tinashe to reach customers who otherwise would never have visited Zondo Chillspot, and today he says that around 80% of their orders come through Uber Eats.
“Uber saves the day. Even when it’s quiet for walk-ins or dine ins, Uber Eats orders will keep coming through – people love being able to order from the comfort of their own home.”
– Tinashe Chinyanga
Uber Eats has other practical benefits for Tinashe. Levels of crime are high in the area near his restaurant, and he has previously been robbed at gunpoint. Uber Eats allows Tinashe to close the physical location during dangerous nighttime hours, but keep the business running through Uber Eats.
“Unfortunately, there can be a lot of crime in our area when it gets dark, meaning people don’t want to walk around with money. Luckily we have Uber, so we can deliver the food straight to them and keep the business going while keeping ourselves safe.”
– Tinashe Chinyanga
Mofine Foods
Thabang Calvin runs Mofine Foods, a restaurant based in the Olievenhoutbosch township in Centurion. He serves a wide range of cuisines, ranging from burgers to sphatlho.
Since its launch three years ago, Mofine Foods has been a huge hit with its customers. However, they have long expressed a need for a delivery option. Thabang decided to partner with Uber Eats, as the platform allows him to deliver to his customers without the hassle of organising his own delivery drivers and payment systems. Now, around a third of his orders are through delivery.
“Our customers used to ask ‘how can we order your food to our home?’ but we didn’t have a delivery system. That’s when we realised that to grow our customer reach and grow our clientele, we needed to start using Uber Eats. I thought it would be a really lengthy process, but it didn’t even take a week until we were set up and ready to go.”
– Thabang Calvin
The Uber Eats app has therefore helped Thabang reach more customers than ever before. Using the advertising on the platform, Thabang has introduced his brand to people who had never previously heard of the restaurant. This has allowed him to increase order numbers and revenue without the need for a larger physical space.
“People love our food and they want the convenience of being able to order from their own home. With Uber Eats we’ve got more orders and higher revenue than when people had to come to us.”
– Thabang Calvin
Wakanda African Restaurant
Asive runs the Wakanda African Restaurant, specialising in West African food, with two locations in Cape Town.
In just four years, Asive has grown her business from a small startup run by just herself, her husband and one employee, to a trusted brand with 20 employees and two locations. She also recently won an award for the Best African Restaurant in Western Cape.
Asive credits Uber Eats for helping her to grow the business so quickly. The Uber Eats platform has enabled Asive to reach a much wider customer base than would have been possible otherwise. People who would not consider going out to eat, regularly order from her through Uber Eats because of the convenience it offers its customers.
“Uber Eats have been a great partner for us. They ran an online course for us and other business owners teaching us business skills.”
– Asive Maxama
Uber Eats isn’t just helping Asive reach more customers; it’s also helping her to deal with the admin of their orders too. Instead of taking calls, writing down orders and having to arrange their own deliveries and payment, Asive knows she can rely on the Uber Eats app. This gives her the time to focus on creating the best food possible for her customers.
“If someone calls us trying to order on the phone, I just tell them to use Uber Eats, it’s so much easier for us. All we need to do is make sure we are dishing up the highest quality food as quickly we can, and we leave the rest to them.”
– Asive Maxama
Smart Kitchen Co
Jasper Meyer is the founder of Smart Kitchen Co, a company that runs dark kitchens and sells groceries and other items through Uber Eats.
Jasper started his business in 2017 selling pizzas. Seven years later, he runs twenty three facilities nationwide, with plans to expand even further. Smart Kitchen Co now focuses on delivering groceries and other conveniences directly to customers through the Uber Eats app, with up to 5,000 orders a day. This is made possible by the power of the app’s platform to direct its large user base to Jasper’s products.
“While I was studying at university, I was delivering pizzas. Eventually, I bought my own pizza ovens and started delivering my own. Eventually, it was successful enough that I rented a little kitchen behind a mechanic. Then the Uber Eats app launched and we partnered with them, that’s when we really took off”
– Jasper Meyer
Consumers increasingly want products on demand. Jasper’s business has thrived by partnering with the Uber Eats app to deliver high quality products right to customers’ doors. The app’s extensive reach and efficient delivery system combined with Jasper’s infrastructure and top quality products showcases the power of the platform economy in supporting South African entrepreneurs.
“I love working with Uber Eats because they’re a partner. I get to use their branding and their selling power. I couldn’t have done this without them.”
– Jasper Meyer
Uber’s partnership to digitise township economies
Townships in South Africa were established to exclude black-Africans from participating in the economy in a self-sustaining manner, restrict their access to central business districts, and prevent Historically Disadvantaged Persons from entering the labour market. They were the bedrock of Apartheid and are a remnant of its effects, which is why the Gauteng Department of Economic Development has prioritised investment into the township economy.
The Department has identified 67,000 enterprises based in townships across Gauteng, and has secured R300m in investment for them through the Township Development Act and Township Development Strategy. The Department is now seeking private sector stakeholders to support the initiative.
Uber aims to support the Gauteng Department of Economic Development in their last-mile and township economy initiatives over the next three years, helping to implement this vital work.
Uber can connect township enterprises, potential customers and delivery people to a broader marketplace using Uber Eats’ and its affiliates’ technology.
Launched on the 4th August 2023, this partnership aims to:
- Digitise 700 qualifying restaurants and retail and manufacturing SMEs in Gauteng.
- Connect qualifying businesses to a potential 160,000 new customers, leading to R200 million worth of economic activity.
- Invite emerging online eCommerce platforms to participate in the initiative, leveraging the online-readiness of merchants and availability of delivery people to bring about a more vibrant and competitive landscape for the township digital economy.
How does the Uber app power South Africa’s nighttime economy?
People in South Africa are keen to make use of their diverse and exciting nighttime economy. New schemes in Johannesburg and Cape Town such as First Thursdays10 demonstrate the demand for late night activities such as visiting local galleries, restaurants and bars.11
However, people in South Africa often struggle to travel late at night. According to our survey, 67% of adults in South Africa said it is difficult to use public transport at nighttime, leaving them with the alternatives of paying for taxi fares or leaving social events early.
In this context, the Uber app helps riders to enjoy their evening feeling confident that they have a safe way to get home at the end of the night. According to our research:
0
%
of adults in South Africa agreed that having options like the Uber app available made them more confident in staying out late.
0
%
of adults in South Africa agreed that the Uber app was the only way to get home late at night.
This in turn helps people share their spending power across South Africa’s economy. We found that:
0
%
of riders agreed that the Uber app makes it easier to get to bars and restaurants.
0
%
of riders agreed that the Uber app makes it easier to go to local businesses in their area.
0
%
of riders agreed that the Uber app makes it easier to go see a film, show, performance or sporting event in their region.
By allowing many people in South Africa to reach their local bars, clubs and restaurants late at night, we estimate that the Uber app supported R394 million in additional value for the nighttime economy in 2023.
Moreover, it’s not just users who connect more with their local communities through the Uber app. Driving or delivering with the platform is a great way to discover new places in the local community:
0
%
of drivers agreed that apps like the Uber app helped them to discover new destinations in their city.
0
%
of drivers agreed that apps like the Uber app helped them to discover new activities in their city.
How does the Uber app support tourism?
From Table Mountain to the Cape Winelands, travellers come to South Africa to enjoy its scenery, wildlife and culinary delights. This in turn forms an important part of the country’s economy, worth almost 4% of South Africa’s total GDP.12
Tourists in South Africa trust the Uber app to help them navigate the country. This means that Uber helps to connect overseas customers to local businesses – driving additional revenue. 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 bn.13
Uber’s Impact:
Consumers
Uber makes people in South Africa’s lives easier
Uber is revolutionising the daily lives of people in South Africa, offering unmatched convenience to go anywhere and get anything.
The Uber app has made it easier than ever for people in South Africa to travel around their local area, safe in the knowledge that the service will be reliable and affordable. Meanwhile, the Uber Eats app enables people in South Africa to get food and other essential items delivered right to their doorstep.
How do people in South Africa use the Uber app?
Since its launch in 2013, the Uber app has changed the way many people in South Africa choose to travel. There’s never been an easier way for people in South Africa to reach their destination.
The Uber app is always there for people in South Africa when they need it the most, often supporting people to make essential journeys. In the last year:
0
%
of riders had used the Uber App to get somewhere in an emergency.
0
%
of riders had used the app to support friends and family who struggle with mobility.
0
%
of riders had used the app to travel to or from a doctor or hospital.
Many adults in South Africa also use the Uber App for work-related travel. In the last year:
0
%
of riders had used the Uber App to commute to or from work.
0
%
of riders had used the Uber App more than once in the last year for work-related travel.
The Uber app also helps many people in South Africa enjoy themselves. In the last year:
of riders had used the Uber App to go shopping.
of riders had used the Uber App when visiting a restaurant or café.
of riders had used the Uber App to get to a party or festival.
of riders had used the Uber app to get to a birthday party or wedding.
Why do riders choose the Uber app?
We found that “reliability” was the most commonly cited reason for riders choosing to use the Uber app (95%), closely followed by “safety” (94%) and “convenience” (94%).
Which factors tend to be important in why you choose to use the Uber app?
To really understand the riders’ motivations, we asked them to tell us in their own words why they chose the Uber app. The most commonly used words were: convenient, safe and easy.
With people in South Africa leading busy lives, they particularly turn to the Uber app when they are in a hurry. In the last year, 77% of riders told us they had used the Uber App when they needed to get somewhere fast.
In fact, riders estimate the Uber app saves them 6.89 minutes per trip compared to their next fastest alternative. Thus, we estimate that the Uber app saved people in South Africa a total of 7.8 million hours in 2023. This is equivalent to the time it would take to complete 2,200 three-year bachelor degrees.
How does the Uber app support South Africa’s transport infrastructure?
The Uber App helps to promote significant transport efficiencies in South Africa.
Congestion is a big problem in urban areas, with millions of people travelling on the roads everyday. In Pretoria, a recent report found that the average commuter spends 146 hours per year in rush hour traffic, equivalent to six whole days.14 Reducing this traffic is therefore essential to improving the quality of living for people in South Africa, as well as being important for the environment.
By promoting carpooling and ridesharing, the Uber app is decreasing the number of vehicles on the road while efficient algorithms help to optimise driving routes, reducing unnecessary travel time.
Our survey found:
of riders agree that having the Uber app as a ride sharing option reduces their need to drive.
of adults in South Africa who don’t own a car said this was because they can use ride hailing services like Uber when they need a car.
of riders have used the Uber app when they could have driven themselves in the last year.
The Uber app also helps people in South Africa connect with public transport. A recent report by the University of Pretoria found that many people in South Africa struggle with first and last mile challenges when travelling with public transport.15 Often, public transport does not come near enough to people’s homes, meaning it is entirely inaccessible or they are forced to take risky journeys to reach it.16
According to our research, the Uber app is helping to solve this problem:
0
%
of riders said a lack of public transport is an important reason to use the Uber app.
0
%
of riders had used the Uber app to get somewhere where other forms of transport do not reach.
0
%
of riders had used the Uber app to connect with public transport.
You said that you have taken a trip through the Uber app to connect with another mode of transport. Which of the following best explains why this is? Please select all that apply.
Attitudes to Sustainability:
Sustainability is important to people in South Africa, and many adults are keen to reduce their carbon footprints and travel in sustainable ways. Our survey found that:
- 51% of adults in South Africa agreed that they didn’t mind paying a little more for a ride from an electric/environmentally friendly vehicle.
- 44% of adults in South Africa said they’d be more likely to request a ride using the Uber app if they knew they would be riding an electric vehicle.
How do people in South Africa use the Uber Eats app?
The South African food delivery market is one of the biggest in the whole of Africa, with the Uber Eats app at the forefront of the sector.17 The platform helps millions of people in South Africa to access their favourite food, drink and groceries every week.
According to our research, in the last two years:
0
%
of adults reported using delivery apps to order a meal.
0
%
of adults in South Africa reported using delivery apps to order other products, such as pet food, in the last two years.
0
%
of adults in South Africa reported using delivery apps to order other products, such as pet food.
Why do people use the Uber Eats app?
We wanted to understand why consumers choose to use delivery apps. 63% of Uber Eats app users in South Africa listed “convenience” as the most common important reason why they opted to use food delivery apps. Users also highlighted that they used the food delivery apps because of “quick delivery times” (62%), “tired of cooking or doing dishes” (52%) and “good service” (52%).
Which of the following, if any, are important reasons why you order using food delivery apps?
In fact, 80% of Uber Eats users agree that food delivery apps are a lot more convenient than other forms of takeout.
Ultimately, the convenience offered by the Uber Eats app saves people in people in South Africa a considerable amount of hassle. They don’t have to go to the supermarket, cook or do as much washing up after their meal. This time saving really adds up – and we estimate that the Uber Eats app saves consumers over 12.7 million hours a year by bringing food and groceries directly to their door. This is equivalent to listening to Kabza De Small’s entire discography 330,000 times.
How Uber creates value for consumers
One of the most important measures of economic welfare is known as “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service or organisation.
In simple terms, it is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service. Services with a high consumer surplus are implicitly playing an important role in people’s lives, because we would willingly pay more than the asking price to keep using it.
For example, a small pack of biltong might typically cost R30 – but a South African might be willing to pay up to R50 when they’re hungry. The consumer surplus in this instance would be R20.
In order to understand this metric for Uber’s services in South Africa, we asked users how much they would have to be compensated to lose access to the Uber or Uber Eats app for the next month.
In total, we estimate that rides with the Uber app are producing a R10 billion in consumer surplus for South African riders, and deliveries with the Uber Eats app are producing a R12 billion in consumer surplus for South African consumers.
Uber’s Impact:
Safety
Uber helps people in South Africa feel safer when they travel
South Africa has among the top 5 highest crime rates in the world18 largely dominated by home and street robberies (15%), vehicle theft (3%) and sexual offences (2%).19 It is important that individuals feel safe as they go about their daily business, however, this isn’t always the case. According to our research, 37% of adults in South Africa feel unsafe travelling home alone at night – rising to 49% of women, meanwhile, half the population reported they had felt unsafe on public transport at some point over the last year. These findings are similar to the Victims of Crime Release which found that 42.8% of people in South Africa feel unsafe when walking alone after dark.20
Safety is therefore at the heart of Uber’s operations. Many people in South Africa rely on the Uber app as a secure alternative to public transport including bus, rail, minibus taxis, or even driving when under the influence. The app allows people in South Africa the freedom to enjoy their plans without fearing for their safety.
How does Uber support safe travel?
People in South Africa overwhelmingly trust the Uber app as a safe way to reach their destination. 76% of riders told us that without ridesharing services it would be very or somewhat difficult to find a safe way to travel at night.
This is especially true for female riders:
of female riders said safety was a very important reason they used the Uber app.
of female riders said the Uber app was the safest way to get home late at night.
of female riders said the Uber app has helped them to be more independent.
Uber continues to evaluate its safety features, consistently adding innovative measures to improve both riders’ and drivers’ experiences. The “ride check” feature detects if the vehicle has stopped for an extended period and sends a prompt to the driver and rider checking if they are alright. If unresponsive, the Uber app will follow up with phone calls.
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How does the Uber app help to make roads safer?
The Uber app is also playing an important role in making South Africa’s roads safer. In 2022 alone, over 12,000 people died in traffic accidents on South Africa’s roads.21 This is a tragic loss of life that impacts whole communities on an all too regular basis.
The Uber app provides a safe way for riders to get home after they have been drinking on a night out. This convenient alternative helps to reduce drunk driving in communities.
of riders agreed that having options like the Uber app helps reduce drunk driving in an area.
How does Uber help drivers and delivery people to feel safe?
Uber takes driver safety incredibly seriously. Driving alone, sometimes late at night, can come with risks, and Uber is committed to supporting its drivers and delivery people to feel as secure as possible. There have been a number of instances of hijacking e-hailing drivers, robberies of delivery people, extortion, and intimidation reported over the years. In addition to proactively collaborating with law enforcement and providing support during investigations, the Uber app offers several in-app interventions that are intended to mitigate these crimes.
Which of the following safety features did you know about and made you feel safer?
Uber has a history of making every effort to improve driver safety. Uber’s innovations, such as allowing drivers and riders to communicate through their in-app contact system rather than sharing their phone numbers, have made drivers safer using the app. Uber also continues to produce new safety features, such as the ability to make encrypted audio recordings of trips.
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Conclusion
This report highlights the tremendous impact Uber has had in South Africa since its launch in 2013. Not only has Uber made a significant contribution to the economy, it has also made it easier than ever for people in South Africa to go anywhere or get anything. Overall, we estimate that Uber has directly contributed a staggering R17 billion to the South African economy in 2023 and we estimate that rides with the Uber app are generating R10 billion in consumer surplus while deliveries with the Uber Eats app are generating a R12 billion in consumer surplus for people in South Africa.
This is just the beginning. The platform economy will continue to grow and invigorate the South African economy, creating new and exciting innovations. These can help tackle some of the long-term policy challenges South Africa has struggled with, creating earning opportunities for young people and better connecting people to their local area.
With the right conditions and a pro-innovation environment, we estimate the South African ride-hailing market as a whole could grow significantly. This would help to boost South Africa’s prosperity, raising living standards and providing additional revenue for the public services people in South Africa rely on.
The South African government is committed to continuing to foster this digital revolution, and has implemented some important policy steps to make this a reality. This is evidenced by the Digital Economy Master Plan and the passing of the National Land Transport Amendment Bill which introduces “e-hailing” as a category of transport. But there is more that can be done if South Africa is to accelerate the digital transformation further.
To fully harness the potential of the platform economy, South Africa should:
Enhance digital inclusion.
There is a significant gap between the demand for digital skills and available supply.22 While South Africa has among the highest internet penetration rates, investments in internet access, especially in underserved areas are becoming prevalent.23 This would allow more people to engage in the digital economy as drivers, delivery people, and customers, boosting overall economic growth. The partnership with the Gauteng Department of Economic Development to digitise townships is another form of digital inclusion that would accelerate local economic growth and development through greater access to market. Issues such as flexible access to finance for drivers, delivery people and merchants would enhance the digital economy and deepen its economic contribution.
Encourage the integration of various transport modes:
We find that 71% of riders had used the Uber app to get somewhere where other forms of transport do not reach and 41% of riders had used the Uber app to connect with public transport. This points to significant transport poverty, disadvantage and social exclusion resulting from a lack of first-and-last mile mobility options and little to no integration between ridesharing with public transport. Encouraging modal integration through technology will likely contribute to safer, seamless access and mobility for riders and reduce instances of crime against drivers.
Promote flexible working.
The success of the platform economy hinges on the flexibility it offers drivers and delivery people to be independent. South Africa should ensure this flexibility remains and support entrepreneurs in managing diverse income streams. Platforms cannot and should not dictate to drivers and delivery people whether or not they should drive or deliver with one or multiple platforms.
Support a pro-innovation regulatory framework.
Digital economies prosper in a stable and encouraging policy environment. South Africa’s platform economy would benefit from regulations that ensure safety, fairness, and transparency while fostering innovation and competition.
Implement environmental incentives.
In line with the Just Energy Transition Implementation Plan,24 the government should continue to encourage the use of eco-friendly vehicles, such as electric motorcycles, cars, and non-motorised transport by offering tax incentives, subsidies, and developing charging infrastructure. This would reduce the transportation sector’s carbon footprint and improve urban air quality, while creating a path for drivers, delivery people and merchants to begin transitioning to more environmentally sustainable vehicles and supply chains.
Methodology
About Public First:
Public First is an independent consultancy that works to help companies and organisations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the Market Research Society.
About this report:
In this report, Uber commissioned Public First to better understand and quantify the impact they were having for riders and eaters, drivers and delivery partners, merchants, and communities in South Africa. All values are given in SAR.
We used a mixture of methods to explore Uber’s impact:
- Public First ran an in-depth nationally-representative online consumer poll of 1,000 adults in South Africa to explore their travel and food ordering habits.
- Public First ran an in-depth online poll of 508 drivers and delivery people in South Africa to explore their experiences and attitudes.
- Public First then created new quantitative models of the economic impact, time saved, consumer surplus and driver value created by the Uber app.
Economic impact of Uber
The economic impact of Uber was calculated as the sum of:
- Date on driver payouts provided by Uber
- Supply chain (indirect) and additional demand (induced) impacts of driver spending on vehicles.
- Induced impact of net driver income, which is then spent in the wider economy.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in South Africa. It does not attempt to measure what would happen in a hypothetical where Uber no longer existed. Our modelling does not include the impact of Uber’s direct investment or employment footprint as a company in South Africa, or any spillover effect this has into the wider tech ecosystem.
Time saved by Riders
As part of our polling we asked riders about their most recent trip with the Uber app and how long the next best alternative would have taken. Using this, and internal Uber data on average trip times and numbers, we estimated the time saved per trip and aggregate time saving from using Uber.
Consumer surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked app users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [ride hailing apps/third party delivery apps] or go without access to [ride-hailing apps/third party delivery apps] for one month and get paid RX?”
The price offered was randomised between 50, 110, 215, 430, 860, 2,150, 4,300, 8,600, 21,500.
We then computed a logarithmic regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure. This was then scaled by users to calculate the total consumer surplus.
Additional income
To calculate the additional income we asked workers the following question:
“If the Uber/Uber Eats apps did not exist, how much do you think you would be likely to earn per week with your next best alternative?”
The results from this polling allowed us to calculate the relative alternative earnings. This was then combined with internal Uber data on earnings and number of active drivers to calculate the total additional income earned.
Value of flexibility to workers
As part of the driver and delivery partner survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options for your driving or delivery:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now
Which would you prefer?”
In our poll, we asked a series of identical questions, within which X was randomised between 1%, 5%, 10%, 20% and 50%.
We then used a linear regression to derive a demand curve and the total driver surplus per user, which was then scaled up to a national level using data provided by Uber on driver numbers and earnings.
Impact on the night time economy
We gathered data from third-party sources on the market sizes of alcoholic beverages, cinema, music events, and restaurants, along with their associated costs, to estimate the total number of outings each year. This was then adjusted using polling data to account for transport options, market share, night time hours and additionality.
Impact on tourist industry
To estimate the number of Uber journeys taken by tourists we used internal data from Uber alongside third party estimates. To measure the impact Uber has on the tourism industry, we average the results from two methods:
- The first approach draws on figures from Park (2020)25 on the effect of Uber on tourism and applies the relevant findings to the South African tourism industry.
- The second approach uses Uber’s internal data alongside Public First’s survey data to estimate the number of Uber trips taken by tourists that would not have happened otherwise and the subsequent spending that occurred as a result.
Impact on restaurants
The model utilises Uber’s internal data on the total payout to restaurants via Uber Eats. We estimate the proportion which is additional using the average of consumer polling undertaken by Public First, Collison’s (2020)26 estimated range of the proportion of dollars spent on food delivery apps that are incremental, and figures from Deloitte’s 2019 report “Delivering Growth”.27
Following standard input-output methodology, we used input-output tables to estimate Type 1 and Type 2 output multipliers for restaurants in South Africa. These multipliers are used to estimate the total impact via restaurants UberEats has on the economy.