S. Africa: E-hailing services drivers call on government to follow other countries in the world by regulating the industry and improve their conditions of employment; includes co. comments
'We are not making any profit' - Uber, Bolt drivers on strike’ 22 March 2022
E-hailing services drivers across Gauteng embarked on a three-day strike from Tuesday, with more provinces expected to follow suit. Drivers who say they are contractors for Uber, Bolt and Didi want government to better regulate the industry and improve conditions of employment. On Tuesday, drivers marched in Pretoria to hand over a list of their complaints to the Department of Trade, Industry and Competition. They want the department to intervene in both the classification and regulation of the e-hailing industry, which they claim is exploiting drivers.
"Countries around the world have done well to regulate the e-hailing industry, but South Africa has not done that. This system allows companies to exploit and underpay the drivers," said Melithemba Mnguni, convenor of Unity in Diversity, a group that represents the drivers. He says 1 500 drivers took part in Tuesday's protest. Uber insists that its drivers are independent contractors who may be linked to several apps and are therefore are not seen as employees. "It is not clear how the e-hailing operators in this country are classified. On one hand, they are tech companies, at the same time they are seen as transport services. This lack of a clear definition of the sector needs to be addressed." According to Mnguni, drivers were "operating at a loss" due to high commissions deducted by companies. "Our jobs and lives are often at risk, and such challenges are worsened by the fact that we are not making any profit. For instance, Uber deducts 25% to 30% commission from drivers, leaving us with nothing."
… Last year, two law firms announced that they would file a class action on behalf of South African Uber drivers against the company, for drivers to be recognised as employees. Mnguni said they continue to be in contact with the law firms, Mbuyisa Moleele Attorneys and Leigh Day, which are involved in the planned litigation. But the drivers pushed ahead with the strike, given that "there were many urgent issues that needed to be addressed" while they wait for the case to proceed. Currently, drivers are seen as self-employed independent contractors and have limited rights. Uber Sub-Saharan Africa said that as independent contractors, drivers don't get paid by Uber and they make earnings from each Uber trip they make. The company also confirmed that their standard service fee is 25%, which they say covers the cost of running the Uber app from each fare.