The introduction of digital payments for the estimated 10 million South Africans who use minibus taxis daily is central to industry body Santaco’s efforts to propel the industry into the digital era.
Santaco spokeswoman Rebecca Phala told TechCentral in an interview on Wednesday that the industry’s evolution is being stymied by manual processes and a lack of reliable, persistent sources of data regarding trips, passengers, drivers and other metrics critical to making decisions that will futureproof the industry.
“The taxi industry appreciates that commuter needs are changing, especially after the Covid-19 pandemic. South Africans today are youthful – they want to get into a taxi and not have to wait for too long. They want to get in and listen to their favourite podcast and not what is on the radio,” said Phala.
“There is a need, then, to embrace digitisation to ensure we don’t only meet consumers where they are but also introduce efficiency to our operations. There are many initiatives under way to achieve that, but we see payments as a key entry point to the industry’s evolution.”
An example of the industry’s overreliance on manual processes is how fleets are managed at ranks – usually by a queue marshal using pen, paper and memory. When the marshal falls ill and can’t be at work for a day or two, the entire system suffers.
Another key area where digitised data is important regards interactions with government, financial institutions and other businesses looking to partner with the taxi industry.
Phala described the operating environment post-Covid as hostile to taxi operators, most of whom operate as sole proprietors. Financial challenges have led to many vehicles being repossessed due to non-payment.
In-vehicle Wi-Fi
She said collective bargaining efforts could help better protect Santaco members, but the data needed to make financial decisions must be available for that to happen. The taxi industry’s lobby to get subsidies from government is another key driver.
“The industry has for the longest time been wanting to introduce subsidisation into the sector. Government would then ask questions about how many of our members are tax compliant, or how many trips occur daily in a particular region. Manually compiled data is not accessible enough for us to give accurate answers to those questions,” said Phala.
Read: South Africa’s first electric minibus taxi to hit the road
Another area of importance is consequence management. When a commuter has a negative experience in a taxi, they usually have to stop and most likely make time to travel to a rank or a taxi association’s regional office to file a complaint. Phala said having multiple channels, including an app, would speed up this process while allowing for evidence such photos and video to be uploaded in real time.
Santaco has a number of digitally focused initiatives under way, including an in-vehicle Wi-Fi solution to keep passengers connected to the internet while they travel. Another is a breathalyser pilot using five vehicles in Durban and surrounding areas. The project is aimed at reducing drunk driving by taxi drivers and uses a breathalyser connected to a camera to lock a vehicle’s ignition until its driver blows into the machine and passes the test.
A “book a seat” project aimed at reducing passenger wait times is being piloted on the route between Pretoria and Polokwane. Lessons learnt during the pilot are affecting how Santaco approaches other projects nationwide. One of the observations noted by Phala is that while passengers find the service useful, most say they do not want it in the form of an app they have to load on their phones.
“People prefer something like a QR code and a web interface because of issues with storage space on their phones,” said Phala.
Another initiative is the formation of a central database to serve as a recruitment agency. Phala said this would help make the placement of drivers more efficient and ensure that they have the relevant documentation such as driver’s licences and public driving permits.
Phala said funding these digital initiatives is a challenge for the industry, especially when they need to scale to national level. Lobbying government for subsidies is one way Santaco is approaching the problem, as the guarantee of a minimum income for owners will allow for a fee collection. Another avenue is what Phala described as corporatisation, which would take advantage of economies of scale in procurement.
Digital payments are seen as central the industry’s efforts to propel its operations into the future because these would lay the foundation for integration with other players in the South Africa’s public transport system. An example of this is a tag system being tested in Pretoria, which Phala said could be used to pay for bus rides, toll gates and trips on the Gautrain.
Read: Wi-Fi in minibus taxis to be scaled nationwide
“The taxi industry is not an IT organisation, so we have relied heavily on partnerships with government – in the form of training authorities – and the private sector to help bring our digital vision to life. We are open for business and more than willing to collaborate because our members want to make sure their businesses are sustainable,” said Phala. – © 2026 NewsCentral Media
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