Uber escapes competition robe in South Africa as metred taxis despair

20 Oct 2016


South Africa’s Competition Commission has declined to prosecute a complaint filed by the Metered Taxi Industry against global ride hailing service firm, Uber Technology.

As is the case across the globe, South Africa’s metered taxi industry is battling the entry of Uber in a strife that has delivered some violent protest. In an attempt survive the metred taxi industry filed a complaint with the countries competition police.

In the complaint, the Metered Taxi Industry had raised the following concerns:

  • Uber operates unfairly in that it secures partnerships with multinational companies and this gives it unparalleled access to the market;
  • Uber misleads the public by its notion of job creation for drivers and does not comply with South African public rules and regulations;
  • Uber floods the market with vehicles because it does not have to comply with licensing and other public transport regulations; and
  • Uber charges prices that are below costs.

In a statement released today the Commission said it has conducted an investigation into these allegations and has taken a view that the alleged conduct does not contravene the Competition Act.

“In terms of the Competition Act, the Metered Taxi Industry has 20 business days to refer the complaint directly to the Competition Tribunal if it disagrees with the Commission’s decision.”


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