File photo: INLSA
Uber’s platform contributed approximately R17 billion to South Africa’s economy in 2023, according to the e-hailing giant's first Impact Report for the country, released on Wednesday.
The report examined Uber’s role in driving economic value across sectors, including tourism, restaurants and the nighttime economy.
It estimates that drivers and delivery people using the Uber app earned an additional R2.3bn annually—averaging 57% more than their next-best alternative. The flexibility of Uber's gig model added a further R1.4bn in financial value.
Uber Eats created R1.6bn in additional value for local restaurants by enabling them to leverage delivery as an additional revenue stream, while the Uber app created R1bn in additional value for the South African tourism industry, supporting millions of tourist journeys.
Uber Eats also reported saving consumers 12.7 million hours annually by delivering food and groceries—a figure the report likened to listening to Kabza De Small’s full discography 330 000 times.
Frans Heimstra, the regional general manager for Uber Middle East and Africa, and Nakampe Molewa, the regional general manager for Uber Eats Sub-Saharan Africa, said, “Through the Uber Eats platform, we have been able to bring substantial value to restaurants and merchants by expanding their reach to a wider customer base.
“Meanwhile, access to data revealing insights such as customer preferences, peak ordering times and popular items, has enabled merchants to optimise their offering and tailor their business strategy to meet customer needs. This has helped to boost the local economy while supporting small businesses by providing them with efficient and scalable delivery infrastructure.”
Over 76% of riders noted that without ridesharing platforms, finding safe travel options at night would be challenging, highlighting Uber’s role in addressing safety concerns—especially for women—and in reducing incidents of drunk-driving.
Uber had also been a key player in supporting the country’s vibrant nightlife. An estimated R394 million in additional value was facilitated for South Africa’s night time economy, through access to convenient and safe transport options to nightlife hubs.
Uber surveyed its drivers and delivery people about their reasons for choosing the platform. The top motivators were:
– Independence: 55% desired the autonomy of being their own boss.
– Flexibility: 40% prioritized the flexible work schedule.
– Enjoyment: 39% simply liked driving.
The gig economy in South Africa is playing a pivotal role in reducing unemployment across various industries, providing critical income opportunities for an estimated 135 000 gig workers, which constitutes 1% of the employed population in sectors such as ride-hailing, e-commerce, entertainment, and online delivery services, according to the Fairwork Report released earlier this year.
BUSINESS REPORT