The Competition Commission will launch an inquiry into the land-based public transport industry in early June to determine if there are any features that lessen, prevent or distort competition.
The inquiry, expected to take two years, will involve public hearings, surveys and meetings with stakeholders and will cover all forms of public transport.
Between 70% and 80% of the South African population is dependent on public passenger transport, with only 30% of households owning their own vehicle. In explaining its reasons for launching the inquiry, the commission said it believed there may be a feature or combination of features in the public passenger transport industry "that prevents, distorts or restricts competition".
The cost of public passenger transport is estimated to have more than doubled between 2003 and 2013, with half of the workers using public transport suffering a 40% or more reduction in their hourly wage due to transport costs.
The commission said it had received a number of complaints alleging anticompetitive conduct. Passengers complained that short-distance bus fares were excessively priced and that long-distance bus fares were excessively priced, especially during the peak periods.
Some service providers alleged that operational subsidies available for certain modes of public transport placed them at a competitive disadvantage.
The commission said that in preliminary investigations it was apparent that there were inconsistencies in regulations relating to subsidies and prices. This suggested there were contradicting objectives between government policies and the promotion of competition.
Uber’s growing role in the industry will also be put under the spotlight but seems unlikely to take centre stage, given the size of the industry and the wide array of players.
"The entry of Uber and related app-based transport service operators have in some respects increased competition but also bypassed some of the regulations that traditional metered taxis adhere to," said the commission.
Countries such as France and Singapore have proposed thatall passenger transport be subject to the same rules.
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