School of Business Sciences (ETDs)
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Item Competitiveness and Profitability of e-Hailing Vehicle Ownership in South Africa(University of the Witwatersrand, Johannesburg, 2024) Balekwa, Bingo; Malikane, ChristopherA qualitative research method is employed to examine the competitiveness and profitability of owning an Uber and/or Bolt vehicle(s) in the e-hailing industry, in South Africa. In-person interviews were conducted with the use of unstructured paper-based questionnaire, on which participants’ responses were recorded. Porter’s Five Forces model is adopted as the research theoretical framework. A total of eight randomly selected participants from Uber and Bolt were involved in the study. Four interviews were conducted in the city of Johannesburg, in the Gauteng province, and four in the city of Durban, in the province of KwaZulu Natal, in South Africa. The results are based solely on the Uber and Bolt drivers’ personal experiences and perceptions. Part of the data was recorded from the Uber and Bolt drivers’ applications installed on the cellular phone device, that are used to conduct business. The results show that profits are significantly low, with the lowest monthly profit of just over R900, for one vehicle. All drivers interviewed, operated with fully owned vehicles that were not financed through debt. Competition is significantly fierce in the e-hailing industry in South Africa, with each Uber or Bolt vehicle driver having only 10% - 20% probability of securing business at any instance on a normal day. Lack of stringent regulations by the government, in the industry, also gives rise to unfair competitive advantage for (and rivalry between) some drivers. A lack of barriers to entry is significant, owing to establishment of regulations by the government