Taxis are the most popular mode of transport in urban areas for the majority of South Africa’s population. Public transport by taxis account for 65% of the transport total, 20% by bus and 15% by rail.

In 2000, Government introduced a four-year taxi re-capitalisation programme in its drive to formalise the industry. The programme is aimed at the individual operator offering affordable, purpose-built, safe and convenient public transport. Current minibuses will be replaced with 18- and 35-seat minibuses.

The taxi industry consists of minibuses, dominating 90% of the market, and metered taxis active in the remaining 10% of the market.

The industry consists of approximately 150 000 public minibus taxis.

At present, minibus commuters are charged fixed amounts for travelling on particular routes. These routes are generally known, without being published. In the case of metered taxis, there appear to be two types of fares: metered prices and negotiated prices. The metered price is the ‘official’ pricing that should be complied with, and is set by the taxi associations, again apparently collusively.

Current meter reading fares are charged as follows: an initial fare of R2.00, then R5.50 per kilometre and 10 cents per 20 second period of engine idling time. There is no charge for the distance travelled by the taxi to the client, so the fares mentioned must cover that distance as well. Some taxi companies also offer special rates of up to 50% discount for disabled passengers and pensioners.

The South African Taxi industry plays an important role in the economy considering that the majority of South Africans are poor and dependent on public transport. Lack of regulation resulted in a massive informal component of the industry.