Car-hire companies and shuttle services are showing little concern about new kid on the block, Uber, saying that it has filled a gap in the transport industry. However, according to Uber, the company is starting to see uptake outside its niche market.
With its convenient and cost-effective service offering, Uber has managed to generate quite a stir within the transport sector.
Uber Johannesburg GM, Alon Lits, describes the growth of Uber across South Africa as phenomenal. He adds that the uptake of UberX in Cape Town has been particularly exceptional, as the cost of travelling using UberX is cheaper than owning a car. “We see ourselves as having created a new segment within the industry as we’ve created a new way for locals to get around,” he maintains.
Industry experts agree that Uber has had a significant impact on travel. Keith Rankin, CEO of Avis, says that Uber offers a great value-add for locals, but that the service challenges metered taxis rather than pre-booked corporate services. “In South Africa the metered taxi service is not as entrenched as it is elsewhere, so they fill a gap in the market,” he comments.
“Uber caters for a niche market that complements traditional transport solutions as opposed to replacing them,” agrees Martin Lydall, CEO of Europcar. He says Europcar has not seen any direct impact on its transfers or flexi-drives as a result of Uber but adds that competition is a great stimulus for the car-hire company to continue to improve its business and relevance to customers.
According to Guyck van Heerden, MD of EZ Shuttle, Uber has breathed life into the cab industry but it falls short in the corporate space where liability issues are of key importance to companies. “Uber cannot provide accountability to the same extent that companies such as ours do,” he maintains.
On the leisure side, Van Heerden reveals that EZ Shuttle’s business remains strong, commenting that Uber’s entry into the leisure market will grow the pie for all operators.
Has Uber impacted on your business? Let us know by emailing editor@tourismupdate.co.za.
Debbie Badham
