Uber: The South Africa Experience

Disruptive technology has received much attention as it has changed how consumers consume tourism offerings by creating new companies such as Uber. Technology remains the most powerful external force that is shaping the world today, impacting on all aspects of life. The technology used by Uber is smartphone compatible and this means that the taxi is requested at ‘the palm of a hand’. The velocity of change brought about by information technology has unleashed the forces of disruptive technology such as Uber which has challenged the hegemony of the meter taxi drivers specifically and the public transport system generally. The South African transport system is dominated by the minibus taxi industry. South Africa’s transport system has been changed by the Bus Rapid Transport Systems (BRT), with the first of its kind called “Rea Vaya” which linked Soweto and the centre for Johannesburg, which started in 2009 to operate. South Africa does not have an efficient public transport system, which remains a huge cost to the South African economy. Uber has been used by locals and tourists as a cost effective and safe transport system. The cost-leadership pricing strategies of Uber has meant that it has created a critical mass of customers, just like low cost carriers (LCCs) and accommodation platforms such as AirBNB.