From disruption to dilemma: Uber faces backlash over transparency and driver earnings in SA

6 Mar 2025

Uber has had a challenging history with its drivers and labour since its founding — and this is no less true for South Africa. Some challenges that drivers have experienced are quite common — such as their classification as contractors leading to fewer protections and no benefits, which was upheld by a Labour Court judgment in 2018 — as well as the oft noted fee surcharges and miscellaneous costs.

Uber South Africa, the country’s largest e-hailing service, faces escalating backlash from drivers and riders alike, embroiled in allegations of opaque billing practices. Once hailed as a disruptor of traditional taxi services, the platform now straddles a crisis of credibility as drivers describe plummeting earnings as “modern-day slavery” and riders report unauthorised charges and safety threats with little recourse.

Loophole

“So, there’s a big loophole here,” says Brighton, who has been driving for Uber for three years. Young, dedicated and highly astute, he feels a deep sense of injustice for the costs that Uber forces drivers to carry. “They call it the ‘miscellaneous’ fee — when I send an email to ask what it means, they say ‘we do calculations throughout the week’, but there is no transparency…”

Uber has had a challenging history with its drivers and labour since its founding — and this is no less true for South Africa. Some challenges that drivers have experienced are quite common — such as their classification as contractors leading to fewer protections and no benefits, which was upheld by a Labour Court judgment in 2018 — as well as the oft noted fee surcharges and miscellaneous costs.

While South Africa’s 2018 Labour Court ruling upheld Uber’s classification of drivers as independent contractors, the National Transport Amendment Bill — currently under parliamentary review — could redefine gig workers’ rights. This mirrors global debates, such as California’s AB5 law, which sought to reclassify app-based drivers as employees who are entitled to benefits. Uber’s resistance to such reforms underscores its reliance on a model that externalises risks on to drivers.

All of the drivers interviewed for this story indicated three key challenges, with a lack of transparency in costs and payment, as well as significantly reduced fares over the past year for the same trips.

“There’s a big lie around there. Always a scam. And then the second thing is, there are a lot of tricks, like recalculations that end up putting more money into your account — money that never truly goes to you,” said Brighton.

Johnson is in his late thirties, and works out of Johannesburg. He has been driving for Uber for almost 10 years and has seen fluctuations in pricing and rates — but, he claims, never this drastically.

“It’s almost modern-day slavery,” he lamented. In the early years of driving for Uber, he made enough money to support himself and his dependents, which included his elderly parents. Now, he said, the rates were drastically lower, and he confirmed Brighton’s account of the lack of transparency in “miscellaneous” charges.

“I remember when trips used to pay more than R10 to R15 a kilometre, but now they’re way lower,” said Brighton, comparing the cost of a trip from Sea Point to Cape Town International Airport. “Like, an airport trip that used to be a bargain is now barely acceptable.” He noted that the fare that he would receive in early 2024 was about R150 for such a journey — but on his most recent airport trip, on 22 February 2025, he earned R85.

Driver and rider — the charges aren’t clear

While reduction in fares are a challenge for drivers, they are a boon to consumers. When Uber first launched in South Africa it was a premium service with a premium price point, but with the expansion of the service and close to 40,000 drivers as well as the addition of UberX and UberGO, it has become much more affordable.

Despite this, drivers and riders both share a common challenge — a lack of transparency over fees.

Social media and business review websites have been flooded with negative reviews by riders, with hundreds citing unclear charges or shifting trip fares as the point of dispute.

Of the 4,219 reviews of Uber on Hello Peter, about 86% rated the service one star out of five stars, with dozens listing additional unlisted charges being billed to their cards and accounts, and the almost impossible task of contacting Uber support to have these charges rectified.

“Whenever I request a trip and pay by card it’s either I end up being charged double the amount of my trip, or there is an extra amount that gets debited from my card later after my trip,” wrote reviewer Gloria M this month. “I took this up with them and the only explanation I get is that the amount debited after my trip was a hold, but they refuse to refund me that amount and it has now been five days after that ...”

Uber were sent detailed questions regarding the billing issues of both drivers and customers, and issued the following as part of a broader statement: “The Uber app is designed to help drivers optimise their earnings through features such as Heat Maps, which highlight areas of high demand, and Trip Radar, which broadens earning opportunities by giving drivers more choice in selecting trips. We continuously refine these tools to enhance driver visibility and earnings potential.”

However, Uber did not engage directly regarding queries on miscellaneous fees, nor customer billing issues.

Competition driving quality?

In South Africa’s dynamic e-hailing landscape, Uber faces stiff competition from platforms like Bolt and inDrive, each introducing unique models to attract both drivers and passengers. Bolt, formerly known as Taxify, has rapidly expanded since its 2016 South African debut, and now operates in numerous cities including Johannesburg, Cape Town, and Durban. Known for its competitive pricing, Bolt often undercuts Uber’s fares, making it an attractive option for cost-conscious riders.

InDrive, which entered the South African market in 2019, differentiates itself with a unique peer-to-peer pricing model. This approach allows passengers to propose fares, which drivers can accept, decline, or negotiate, fostering a more transparent and flexible pricing structure. InDrive operates in cities such as Johannesburg, Cape Town, and Durban, appealing to users seeking customisable fare options.

Despite the increased competition, service quality across these platforms has faced criticism. To date, Bolt and Indrive have scores of 1.23 and 1.4 out of 5 on HelloPeter, with thousands of negative reviews. Passengers report issues like unroadworthy vehicles, unprofessional driver behaviour, and frequent trip cancellations. Safety concerns have also escalated, with incidents of passengers being attacked or robbed during rides, sometimes allegedly involving the drivers themselves.

Neither company appears to have engaged with any of these complaints on the HelloPeter forum.

Standards compromised

These challenges suggest that while competition theoretically drives quality, the rapid expansion and focus on market share may have inadvertently compromised service standards. Both drivers and passengers find themselves navigating a complex environment where affordability, safety, and reliability are often at odds.

Uber’s rapid expansion in South Africa was initially celebrated for its affordability and the empowerment it offered to drivers. However, as drivers like Brighton express their frustrations — “The system is rigged, and I'm tired of it,” he asserts — it is evident that underlying issues persist. In response to these challenges, the South African government enacted the National Land Transport Amendment Act in June 2024.

This legislation aims to modernise the transport sector by integrating e-hailing services into the formal public transport framework, requiring operators to obtain operating licences and adhere to standardised regulations. While the act seeks to address systemic issues and create a more equitable environment for all stakeholders, its effective implementation remains crucial. Ensuring that these regulations lead to tangible improvements for drivers and passengers alike will determine the true impact of this legislative intervention.

As Brighton emphasises: “I’m telling you, if I had one chance to speak to Uber, I’d say: ‘drivers need to be taken care of, or else we leave.’” DM

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Business Maverick

Loophole

Driver and rider — the charges aren’t clear

Competition driving quality?

Standards compromised