Taxi subsidies remain a concern, says Competition Commission

Commissioner Tembinkosi Bonakele released the final recommendations of the 2020 Public Transport Market Inquiry report on Wednesday.

Picture: 123rf.com

CAPE TOWN - The Competition Commission said that subsidies for the taxi industry remained a concern for the sector.

Commissioner Tembinkosi Bonakele released the final recommendations of the 2020 Public Transport Market Inquiry report on Wednesday.

The inquiry focused on minibus taxis, busses, trains and e-hailing services.

READ: Commission recommends uniform regulations for e-hailing services, metered taxis

The minibus taxi industry was used by about 66.5% of commuters, buses 23% and rail 9.9%.

But minibus taxis only received 1% of the total government subsidy.

Commissioner Tembinkosi Bonakele said that the top concern from the taxi industry was that subsidies skewed competition in favour of the subsidised services.

"This is one of the major complaints that we received, one of the consistent submission that has been made throughout the inquiry that we also find justifiable."

READ MORE: SA’s public transport system lacks integration, Competition Commission finds

He said that the commission recommended that the policy be finalised and address fragmented subsidies in the public transport sector.

"Ensure an equitable allocation especially for the taxi industry as well as rural buses."

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