Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News
      Gaping holes in South African government cyber defences

      Gaping holes in South African government cyber defences

      2 April 2026
      EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

      EV charging start-up Charge bypasses JSE for token-based raise

      2 April 2026
      Ring, reject, repeat: South Africa's spam call crisis

      Ring, reject, repeat: South Africa’s spam call crisis

      2 April 2026
      Four astronauts begin humanity's return to the moon - Artemis II

      Four astronauts begin humanity’s return to the moon

      2 April 2026
      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      Sars to give every taxpayer a digital identity in sweeping tech overhaul

      1 April 2026
    • World
      Amazon in talks to buy satellite operator Globalstar

      Amazon in talks to buy satellite operator Globalstar

      2 April 2026

      Apple plans to open Siri to rival AI services

      27 March 2026
      It's official: ads are coming to ChatGPT

      It’s official: ads are coming to ChatGPT

      23 March 2026
      Mystery Chinese AI model revealed to be Xiaomi's

      Mystery Chinese AI model revealed to be Xiaomi’s

      19 March 2026
      A mystery AI model has developers buzzing

      A mystery AI model has developers buzzing

      18 March 2026
    • In-depth
      The R18-billion tech giant hiding in plain sight - Jens Montanana

      The R16-billion tech giant hiding in plain sight

      26 March 2026
      The last generation of coders

      The last generation of coders

      18 February 2026
      Sentech is in dire straits

      Sentech is in dire straits

      10 February 2026
      How liberalisation is rewiring South Africa's power sector

      How liberalisation is rewiring South Africa’s power sector

      21 January 2026
      The top-performing South African tech shares of 2025

      The top-performing South African tech shares of 2025

      12 January 2026
    • TCS
      TCS | MTN's Divysh Joshi on the strategy behind Pi - Divyesh Joshi

      TCS | MTN’s Divyesh Joshi on the strategy behind Pi

      1 April 2026
      Anoosh Rooplal

      TCS | Anoosh Rooplal on the Post Office’s last stand

      27 March 2026
      Meet the CIO | HealthBridge CTO Anton Fatti on the future of digital health

      Meet the CIO | Healthbridge CTO Anton Fatti on the future of digital health

      23 March 2026
      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses - Clare Loveridge and Jason Oehley

      TCS+ | Arctic Wolf unpacks the evolving threat landscape for SA businesses

      19 March 2026
      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience - Theo van Zyl

      TCS+ | Vox Kiwi: a wireless solution promising a fibre-like experience

      13 March 2026
    • Opinion
      The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

      The conflict of interest at the heart of PayShap’s slow adoption

      26 March 2026
      South Africa's energy future hinges on getting wheeling right - Aishah Gire

      South Africa’s energy future hinges on getting wheeling right

      10 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Apple just dropped a bomb on the Windows world

      5 March 2026
      VC's centre of gravity is shifting - and South Africa is in the frame - Alison Collier

      VC’s centre of gravity is shifting – and South Africa is in the frame

      3 March 2026
      Hold the doom: the case for a South African comeback - Duncan McLeod

      Hold the doom: the case for a South African comeback

      26 February 2026
    • Company Hubs
      • 1Stream
      • Africa Data Centres
      • AfriGIS
      • Altron Digital Business
      • Altron Document Solutions
      • Altron Group
      • Arctic Wolf
      • Ascent Technology
      • AvertITD
      • BBD
      • Braintree
      • CallMiner
      • CambriLearn
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • Domains.co.za
      • ESET
      • Euphoria Telecom
      • HOSTAFRICA
      • Incredible Business
      • iONLINE
      • IQbusiness
      • Iris Network Systems
      • Kaspersky
      • LSD Open
      • Mitel
      • NEC XON
      • Netstar
      • Network Platforms
      • Next DLP
      • Ovations
      • Paracon
      • Paratus
      • Q-KON
      • SevenC
      • SkyWire
      • Solid8 Technologies
      • Telit Cinterion
      • Telviva
      • Tenable
      • Vertiv
      • Videri Digital
      • Vodacom Business
      • Wipro
      • Workday
      • XLink
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud services
      • Contact centres and CX
      • Cryptocurrencies
      • Education and skills
      • Electronics and hardware
      • Energy and sustainability
      • Enterprise software
      • Financial services
      • HealthTech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Lifestyle
      • Motoring
      • Policy and regulation
      • Public sector
      • Retail and e-commerce
      • Satellite communications
      • Science
      • SMEs and start-ups
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Opinion » Maphanga Maseko » SA meter taxi drivers tooting the wrong horn

    SA meter taxi drivers tooting the wrong horn

    By Maphanga Maseko15 June 2016
    Twitter LinkedIn Facebook WhatsApp Email Telegram Copy Link
    News Alerts
    WhatsApp

    maphanga-maseko-180A complaint to the Competition Commission against Uber by eight regional taxi companies and members of the South African Meter Taxi Association, in which they allege that Uber has engaged in predatory pricing and other anticompetitive behaviour, may prove to be more complex than the complainants anticipate.

    What started as a convenient option for travellers wishing to get from point A to B in San Francisco in 2009 has now been transformed into a service that has been exported to a number of countries, including South Africa. But the technology-based transport service has been met with fierce resistance by the local competition, primarily by the meter taxi service providers nationwide.

    The proliferation of smartphones has created a new product market that allows users of the service to obtain a taxi ride conveniently, cheaply and in a safe manner by initiating the service through the application software on their phones. This trend has allegedly left the common meter taxis in the cold, resulting in the complainants exploring a legal route to secure their stake in the commuter services market.

    The Competition Act encourages a much more competitive and transparent economy and promotes consumer choices as a centrepiece to competition in a market. The Competition Act envisages markets in which consumers have access to, and can freely select, the quality and variety of goods and services they desire.

    Implicit in the preamble to the Competition Act is the recognition that while low prices are generally good for competition, sometimes a price that is “too low” may be bad for competition and force other competitors to exit that market. The legislation attempts to address this issue by prohibiting a dominant firm from selling goods or services below their marginal or average variable cost, unless that firm can show technological, efficiency or other pro-competitive gains that outweigh the anticompetitive conduct alleged.

    This is what “predatory pricing” is about. It is premised on the dominant firm keeping prices so low for a certain period, which has the effect of driving its competitors out of the market as they cannot compete with such low prices. Upon exit by the competitors, the dominant firm then raises those prices, presumably to recoup its investments preceding the exit of competitors. Predatory pricing is seen as exclusionary as it disincentives actual or potential competitors from entering or expanding into that market. The dominant firm can raise efficiency defences to rebut the allegation of predatory pricing.

    For the allegation of predatory pricing to be sustained, the complainants must provide evidence of actual harm to consumer welfare or prove that the exclusionary act is substantial or significant in terms of foreclosing the market to its rivals.
    Proving the allegation against Uber is likely to be a tall order for the complainants as they first have to identify the geographic and product market in which the alleged contravention took place. They must prove that Uber is the dominant firm in the relevant market identified, before even engaging the merits of the predatory pricing argument, if any. If the complainants are not successful with identifying the geographic and product market concerned, this should be the end of the matter when one regards case law.

    uber-640

    Even if the commission refers the matter to the Competition Tribunal for adjudication, by their nature pricing abuses such as predatory pricing are difficult to prove and may take a long time to conclude, before a determination is made by the tribunal.

    The controversy around Uber is not unique to South Africa. Uber currently operates in just over 400 cities globally with a number of complaints being noted against it in different jurisdictions. In France, for example, striking taxi drivers marching on a major highway were teargassed by police earlier this year, when their protests turned violent. In Mexico, there has been a common occurrence of violent attacks on Uber drivers at the international airport in Mexico City, an approach that has now been adopted by local metered taxi drivers to display their dismay with Uber.

    It is early days in the matter, but let’s hope the commission expedites the investigation before there is more violence between the Uber drivers and the complainants and that the law enforcement authorities will ensure that the rule of law is maintained, regardless of the findings of the competition authorities.

    • Maphanga Maseko is TGR Attorneys’ associate in competition law; Crystal Davids is a candidate attorney at the same firm
    Follow TechCentral on Google News Add TechCentral as your preferred source on Google


    Competition Commission competition tribunal Crystal Davids Maphanga Maseko South African Meter Taxi Association Uber
    WhatsApp YouTube
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email Copy Link
    Previous ArticleSassa to file charges against Net1, Grindrod
    Next Article Apple moves to limit Google on its devices

    Related Posts

    Uber commits R5-billion to South Africa amid licensing woes - Deepesh Thomas

    Uber commits R5-billion to South Africa amid licensing woes

    31 March 2026
    Maziv plots fibre expansion blitz - Dietlof Mare

    Maziv plots fibre expansion blitz

    25 March 2026
    MultiChoice, now owned by Canal+, will terminate Showmax at the end of April

    Commission to probe Showmax closure

    18 March 2026
    Company News
    Synthesis helps financial enterprises transform with new Gemini Enterprise - Digicloud Africa

    Synthesis helps financial enterprises transform with new Gemini Enterprise

    2 April 2026
    The next churn wave is already in your contact centre conversations - CallMiner

    The next churn wave is already in your contact centre conversations

    2 April 2026
    Mining's problem isn't output, it's execution - Workday

    Mining’s problem isn’t output, it’s execution – Workday

    1 April 2026
    Opinion
    The conflict of interest at the heart of PayShap's slow adoption - Cheslyn Jacobs

    The conflict of interest at the heart of PayShap’s slow adoption

    26 March 2026
    South Africa's energy future hinges on getting wheeling right - Aishah Gire

    South Africa’s energy future hinges on getting wheeling right

    10 March 2026
    Hold the doom: the case for a South African comeback - Duncan McLeod

    Apple just dropped a bomb on the Windows world

    5 March 2026

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Latest Posts
    Gaping holes in South African government cyber defences

    Gaping holes in South African government cyber defences

    2 April 2026
    EV charging start-up Charge bypasses JSE for token-based raise - Joubert Roux

    EV charging start-up Charge bypasses JSE for token-based raise

    2 April 2026
    Ring, reject, repeat: South Africa's spam call crisis

    Ring, reject, repeat: South Africa’s spam call crisis

    2 April 2026
    Amazon in talks to buy satellite operator Globalstar

    Amazon in talks to buy satellite operator Globalstar

    2 April 2026
    © 2009 - 2026 NewsCentral Media
    • Cookie policy (ZA)
    • TechCentral – privacy and Popia

    Type above and press Enter to search. Press Esc to cancel.

    Manage consent

    TechCentral uses cookies to enhance its offerings. Consenting to these technologies allows us to serve you better. Not consenting or withdrawing consent may adversely affect certain features and functions of the website.

    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}