Uber is scrapping its UberX service in South Africa, raising concerns over potential job losses among e-hailing drivers who may not qualify for the platform’s remaining ride categories
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Uber’s decision to scrap the popular UberX service in South Africa could put thousands of jobs and livelihoods at risk, with the National E-Hailing Federation (NEFSA) warning that more than 60% of its drivers may not qualify to move to other categories on the platform.
NEFSA spokesperson Tela Masakale said the federation was concerned that drivers could be left without an income if their vehicles did not meet the requirements for Uber’s remaining services.
Masakale said many drivers rely on rented vehicles and were already struggling to cover their rental and other business costs.
“We, as NEFSA, are aware that these categories are unsustainable. Whether it’s Uber Go, UberX, Uber Comfort or Uber Black, they are all economically unsustainable," Masakale said in an interview with Newzroom Afrika.
“What we are saying is that we need constant, transparent engagement with Uber around its dynamic pricing model, as well as the different categories it keeps introducing and changing without proper consultation."
Masakale said more than 60% of NEFSA’s drivers may not be able to move to another Uber category, although the federation was still conducting research to establish the full impact of the change.
"Yes, of course. It could even be more than that. Those are just estimated numbers that we have."
Masakale said the main barrier for many drivers was the age and type of vehicles they use, with Uber’s remaining categories having different vehicle requirements.
UberX is a standard ride option on the platform, typically used for everyday trips in non-premium vehicles. It sits between entry-level services like Uber Go and higher-tier options such as Uber Comfort and Uber Black.
Uber officially scrapped the UberX service in South Africa on September 1, with the company saying it was simplifying its product offering after finding that many of the same vehicles were operating across Uber Go, UberX and Comfort.
The company said drivers would still be able to operate on any Uber product for which their vehicles qualify, including Uber Go, Uber Comfort, Uber Black, UberXL and Van.
IOL Business
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