Public Transport News South Africa

Uber heads off taxi complaint

Uber has welcomed the Competition Commission's decision not to refer a complaint against it by the metered taxi industry to the Competition Tribunal for prosecution.
j_nnesk_sser via
j_nnesk_sser via pixabay

Samantha Allenberg, the head of communications at Uber Africa, said on Thursday the company was pleased to see that the commission "has ensured that the public has access to a marketplace that thrives on innovation and change".

In the complaint lodged with the commission, the metered taxi industry said Uber operated unfairly "in that it secures partnerships with multinational firms and this gives it unparalleled access to the market". Uber also misleads the public by its notion of job creation for drivers and does not comply with South African public rules and regulations, said the metered taxi industry.

It also complained that Uber flooded the market with vehicles because it did not have to comply with licensing and other public transport regulations. In addition, the metered taxi industry said Uber charged prices that were below costs.

The metered taxi industry now has 20 business days to refer the complaint directly to the tribunal if it disagrees with the commission's decision. A direct referral is unusual but not unheard of.

One of the highest profile direct referrals was lodged by Nationwide Poles in a case against Sasol more than 10 years ago. The Competition Commission had decided not to refer the complaint and so Nationwide Poles went directly to the tribunal and won the case. However, the tribunal's decision was appealed at the Competition Appeal Court where it was overturned.

Allenberg said competition authorities across the world had been among the first government agencies to come out in support of innovative transportation platforms. "This is an exciting time to be a consumer," she said.

On Thursday Transaction Capital said neither it nor SA Taxi were parties to the commission's proceedings and so could not comment on the matter.

Source: Business Day

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