Question

JOHANNESBURG - The conflict between metered taxi drivers and Uber operators has persisted for over two months (02 June 2017) despite an intervention by the Transport Department and the Police Ministry. Last week, the parties agreed to stop acts of intimidation and harassment that claimed the life of an Uber driver a few weeks ago. Metered taxi drivers have called on the government to kick Uber out of the country, saying the service is putting them out of business.

Police Minister Fikile Mbalula recently (20 September 2017) urged Transport Minister Joe Maswanganyi to resolve tensions between e-hailing services and metered-taxi operators. Mbalula says the issue is slowly turning into lawlessness, and if unresolved could be disastrous. Three vehicles were torched during clashes near Gautrain stations in Sandton and Hatfield last week, and a driver was assaulted. Mbalula says meter taxi drivers should accept the advancement of technology and be innovative enough to compete with Uber and Taxify. “This is the 21st century. That is where we are. They too can utilise the digital advantage of what globalisation has brought. Let them compete.”

1.How effectively does information flow up and down the transport value chain? Motivate your answer. (15)

2.How robust are relationships between the different stakeholders in the transport value chain? Motivate your answer. (12)

3.Discuss the opportunities that exist for improving the competitiveness and sustainability of the South African transport value chain. (15)

4.Discuss the lessons that one can learn about sustainable value chain analysis that might benefit other sectors. (12)

Answer 1

1. Regarding to this case, the public and the users gets affected by such issues of the disorienting transport business among e-hailing commercial vehicles and metered taxi drivers. In the next sequence, the income of the drivers falters from both segments. The third chain includes the gathering of reports in the places of authorities like the police. The police sees through the problem and intervenes it, upon orders from the ministries which falls in the final chain.

2. The kind of inter-relationships that would get to act, is depending upon the attributes of the stakeholders from each area. Public uses the services of Uber a lot and this is getting boosted in their relationships currently. The authorities of the higher level such as the ministers of the transport department and police are always co-operative among each other regarding normal circumstances or be it the conflict between the uber and the metered taxi drivers. The users of taxis registers complain during any issue and the matter is dealt by the police authorities, the relation between the public and the police and eventually the ministers are always remaining healthy.

3. Implementation of sustainable business environment is required

The fares of both the transport media should be made official and should alternate uniformly along with the administration of transportation taxes, so that both the drivers of Uber and the metered taxi gets benefitted.

4. Co-operation between two sectors uniformly is highly recommended every time. Conflicts in business will not arise upon a thrive for mutual business agreement that can normalize the working without any economical interruption which is getting affected by another party.