Taxi industry moves to improve digital access for commuters

The digital divide, which leaves many South Africans with limited access to vital services, provides digital companies with opportunities to create innovative solutions and has led to some unexpected partnerships. 

In a research paper commissioned by the Vodacom Group, Vodafone and Safaricom, “A Lifeline, Not a Luxury: Accelerating 4G for Sub-Saharan Africa”, group CEO Shameel Joosub reiterated the call to unlock a digitally inclusive continent regardless of socioeconomic status.

As the second part of Vodacom’s six-part Africa-related research series, it aims to gain an understanding of all barriers that make digital access elusive. Clear indications point to an overload on 2G, which translates to millions of users who have not made the transition to 4G, as it remains underused. In 2020, the country’s telecom giants MTN and Vodacom unveiled commitments to fast-track upgrades to 5G, despite the snail-paced adoption of 4G justifying doubts about Africa’s mass-market 5G readiness.

The taxi industry is largely regarded as an informal and high-risk market. As the sector attempts to keep up with the disruption brought by technology, the SA National Taxi Council (Santaco) has partnered with Sebenza Wi-Fi, a provider of commuter Wi-Fi. Santaco sees this as an opportunity to leverage its reach by joining the fight to improve digital access. This partnership signals a fundamental shift for the taxi industry and its passengers.

“Our operation grew from 150 vehicles at the end of 2021, to over 8,000 nationally. Vodacom has enabled Sebenza to deliver on their promise by providing data at a competitive rate, underpinned and packaged with solutions that enhance connectivity within mobility,” said Wesley Dorning, director of Sebenza Wi-Fi.

Malcolm Subramony, executive head of managed IoT connectivity at Vodacom, said it was a transformative milestone in bridging SA’s digital divide. “By enabling free Wi-Fi in over 8,000 taxis and buses, we are embedding connectivity into the daily lives of millions, especially in underserved communities,” he said.

Subramony said that giving commuters access to essential digital services and platforms empowered communities. In addressing the connectivity issue, Vodacom Business and Sebenza Wi-Fi were able to reimagine mobility, with the help of Santaco, he said, resulting in a digital co-ordination of the transport system and turning travel time into a productive, connected experience.

“All of our technology has been developed to thrive in uniquely SA conditions. Sebenza has deployed the solution, built the underlying technology from firmware on the device to an ad-serving platform and everything in between,” said Dorning.

In the research paper, making 4G-enabled devices accessible is referred to as urgent, but affordability remains a challenge. According to the report, one way to reduce costs is by manufacturing 4G-enabled devices locally, which would boost GDP and accelerate access to digital services.

Dorning said: “We continually strive to better understand what our commuters want and how they travel. Sebenza aims to change the way people commute. Gone are the days of staring out the window in traffic.”

He said the partnership was a selling point for taxi drivers because commuters preferred Sebenza-endorsed taxis as they had connectivity.

The partnership had redefined the commuter journey by merging transport and technology, as passengers have access to on-the-go streaming, said Subramony.

Digital mobility and logistics and e-hailing company inDrive has also addressed access through a short-term connectivity campaign in Soweto involving 14 spaza shops.

“These spaza shops saw increased foot traffic and attracted new customers simply because of the Wi-Fi availability,” said Ashif Black, country representative at inDrive. “This reinforced our belief that when we merge connectivity with everyday community touch points, we unlock opportunities that go beyond mobility, driving small business growth, enabling digital access and contributing to the local economy,” he said.

Despite competition between taxi drivers and e-hailing drivers, inDrive, receives many digital requests from e-hailers in Soweto. “We made transportation more accessible and affordable. We witnessed a strong uptake from both passengers and drivers,” said Black.

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