The E-Hailing Evolution:Why the Consumer Voice Matters

For Years, getting around Windhoek without your own vehicle meant relying on municipal taxis.

It was not a perfect system, but it was the system most consumers had.

You stood on the side of the road, flagged down a taxi and hoped the driver was going your way.

Often you walked until you found a taxi heading in roughly the same direction and hoped it would get you close enough to where you wanted to be. Sometimes it worked well.

Sometimes it did not. Prices were not always predictable, complaints often went nowhere and consumers generally had very little information about the service they were using.

The arrival of e-hailing changed much of that. When Lefa Transportation Services launched in 2018, it introduced something many consumers had not experienced before in public transport: choice.

Later, companies such as Yango and inDrive entered the market and expanded those choices even further.

Consumers could see where a driver was, follow their route and get an idea of the fare before getting into the vehicle.
For many people, that was the real attraction.

The technology was not important in itself. What mattered was that it solved problems that consumers dealt with every day.

One thing I have noticed over the years is that consumers usually know what works long before policymakers do.

If something makes life easier, people use it. That is exactly what happened with e-hailing.

The industry grew because consumers embraced it, not because the government had already worked out how it would fit into the transport system.
The problem was that the rules struggled to keep up. As e-hailing became more popular, traditional taxi operators increasingly questioned whether app-based services were competing on equal terms.

Their concerns centred on permits, licences and compliance requirements. Whether one agreed with them completely or not, the issue was always going to end up on the government’s desk.

Earlier this year, e-hailing operators were given 56 days to comply with transport regulations and ensure that drivers obtained public passenger permits and Professional Driving Permits. From a consumer point of view, that made sense.

Consumers should expect that people transporting paying passengers meet basic legal and safety requirements.

The problem was never the requirement. The problem was the process. Almost immediately, delays and backlogs emerged as drivers tried to comply. Many wanted to follow the rules but found themselves waiting for permits and approvals while deadlines continued getting closer.

For drivers who relied on e-hailing to earn a living, this created uncertainty and frustration.

Consumers soon felt the effects as well. Fewer drivers on the road meant longer waiting times and fewer transport options, especially during busy periods. What started as a permit problem quickly became a consumer problem.

Of course, there is also the issue of cost. Fuel is not getting cheaper.

Drivers now face permit fees and other costs linked to the new requirements. Somebody eventually pays for those costs.

Some companies use fixed fares while others allow drivers and passengers to negotiate.

More recently, eTaxi Namibia entered the market with a different approach.

Instead of replacing traditional taxi operators, it is trying to bring them into the digital space as well.

At the same time, consumers are beginning to raise concerns of their own.

Reports of in-app delays have generated growing frustration, with some consumers claiming that drivers deliberately delay their arrival in order to increase waiting charges or fares. Maybe it only happens in a few cases.

Maybe it happens more often than people think.

Either way, the complaints raise questions.
Consumers also continue to complain about the cost of getting to and from Hosea Kutako International Airport.

Disagreements between traditional operators and e-hailing services also show little sign of disappearing.

Most consumers do not spend much time thinking about permits, regulations or disputes between operators.

They simply want to know that when they need transport, it will be available, affordable and safe.

There is also another reality that should not be ignored. Much of the discussion assumes that everyone has a smartphone, enough data and a reliable internet connection.

The reality is that many Namibians do not. While e-hailing has made life easier for many people, others remain excluded simply because they do not have access to the technology needed to use these services.

As lawmakers continue working on the public transport bill, it is important not to lose sight of the people who use these services every day. Transport is not really about apps, permits or competing business models.

It is about getting people to work, school, medical appointments and home again.

Drivers need a system that allows them to comply with the law without getting stuck in delays.

Consumers need fair prices, safe transport and reliable service.

Traditional operators need a fair chance to adapt, while e-hailing companies need to respond when consumers raise concerns.

Whenever these debates come up, I find myself coming back to a simple question: has life become easier for the consumer? Is it easier to find transport than it was a few years ago?

Do people have a better idea of what they are likely to pay before a trip starts? Are they spending less time standing around waiting or walking around looking for transport? If the answer is yes, then consumers are benefiting from the changes taking place in the sector.

If the answer is no, then perhaps that is where we should focus our attention.

After all, the success of any transport system should not be measured by how well it works for the government, operators or technology companies.

It should be measured by how well it works for the person who simply needs to get home.

• Milton Louw is the director of the Namibia Consumer Protection Group.

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