Impounding of taxis may have been final straw, says Cape Chamber of Commerce and Industry

The Cape Chamber of Commerce and Industry said taxi businesses were buckling due to various economic pressures including higher fuel costs, higher interest rates on leases, and the impounding of vehicles may have been the last straw for taxi owners. Picture: Armand Hough/African News Agency (ANA)

The Cape Chamber of Commerce and Industry said taxi businesses were buckling due to various economic pressures including higher fuel costs, higher interest rates on leases, and the impounding of vehicles may have been the last straw for taxi owners. Picture: Armand Hough/African News Agency (ANA)

Published Aug 8, 2023

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The Cape Chamber of Commerce and Industry said taxi businesses were buckling due to various economic pressures including higher fuel costs, higher interest rates on leases, and the impounding of vehicles may have been the last straw for taxi owners.

Deputy president of the Cape Chamber of Commerce and Industry, Derryn Brigg said almost no one gained from the current situation, and condemned the violence.

“When a driver is deemed to transgress a law, the taxi owner’s vehicle is now impounded.

“The impoundment of the vehicles destroys the business viability, as there is then no income to the business and yet the vehicle’s monthly hire purchase/lease instalments need to be paid,” Brigg said.

“What many don’t realise is that taxi drivers must pay a fixed daily fee to taxi owners. Drivers therefore try to make as many trips as they can to maximise their profit.

This causes them to drive faster, overtake, and transgress laws. In so doing they may damage the taxi or cause it to be impounded.

They increase wear and tear leading to higher cost of maintenance. Taxi owners therefore do not want bad drivers.

“Herein is the shared goal that should lead to a harmonious future. Better drivers, safer taxis, lower costs.”

The limited ability by taxi owners to track and control bad behaviour, and to transform it into good behaviour, is a technical and business problem that already has solutions, Briggs said, citing e-hailing services.

“We believe herein lies an opportunity for Department of Mobility, with support from the DTIC – to address the systemic problem. The benefit thereof is not only for taxis and the 75% of citizens and businesses that rely on them, but also for the entire economy.

The tax reward from this will easily pay back such investment from government.”

Businesses were also badly affected with staff unable to get to work.

Grub & Vine chef patron and Culture Wine Bar owner Matt Manning said: “We have been impacted by the taxi strike, with several of our staff in outlying regions unable to make it into work. We have assisted where we can with subsidising transport.

While we support the right to protest, it is sad that things once again have to degenerate into violence, which undermines credibility a strike has.”

Meanwhile, the provincial health department said the continued taxi strike, violence, and the disruption of transport resulted in several health facilities being closed, services suspended and a reduced capacity across the region.

“We remain committed to the safety of our staff who are caught in the middle of these incidents of violence and disruption. Certain facilities within the Metropole are closed today and community-based care to our vulnerable clients in these areas has unfortunately also been suspended until it is safe for our staff to go into them,” said Dr Saadiq Kariem, Chief of Operations at the provincial health and wellness department.

“We are in regular communication with the Provincial Joint Operations Centre to monitor the safety of both our staff and patients.”

Cape Times