JOHANNESBURG, Gauteng — The impending Uber X discontinuation in South Africa this September has ignited fierce backlash from the e-hailing sector, with Tella Masakale, spokesperson for the National E-Hailing Federation of South Africa (NEFSA), warning that the move will devastate driver livelihoods. For over a decade, the service has been a staple for millions, but its removal is forcing a complex transition that many operators are financially and logistically unprepared to handle.
Uber claims the phase-out is a strategic move to streamline its product offerings, positioning Uber Go for budget-conscious riders while reserving Comfort and Black for premium tiers. However, Masakale emphasized that NEFSA was never consulted. The unilateral announcement came as a complete shock to the federation, marking a deeply disappointing lack of engagement from the tech giant. Furthermore, Masakale stressed that NEFSA views all current service categories—Go, X, Comfort, and Black—as economically unsustainable, highlighting the urgent need for constant, transparent engagement regarding dynamic pricing models and category shifts.
The federation estimates that more than 60% of its represented drivers may fail to qualify for the remaining service categories, a figure that could rise as ongoing research concludes. This crisis is compounded by the fact that the vast majority of these drivers do not own their cars. Instead, they are rental users leasing from fleet operators such as Valterative, Move, and Easy Way. With only a small fraction being owner-drivers or multi-vehicle fleet owners, the current economic climate already makes it nearly impossible for operators to cover basic rental fees, let alone monthly financing obligations.
Strict vehicle criteria create a massive barrier to migration. While Uber X initially accepted cars newer than 2015, recent policies mandate that vehicles cannot be older than five years, pushing 2020 models into their final year of platform eligibility. Furthermore, Uber X is dominated by entry-level sedans such as the Toyota Corolla, Honda Fit, and Nissan Almera. Uber Go, by contrast, is designated for compact hatchbacks like the Hyundai i10, i20, or VW Polo, while Uber Comfort requires high-end sedans like the Honda Ballade, Hyundai Sonata, or upper-trim Elantras.
Drivers whose sedans do not meet Comfort standards will be funneled into Uber Go. Masakale illustrated the severe financial blow: a 5km trip that previously yielded 70 rand on Uber X could drop to 40 or 50 rand on Uber Go, effectively halving driver income for the same distance and vehicle wear.
This income squeeze occurs against the backdrop of a tough South African economy, where riders increasingly seek the most affordable options. This has fueled the growth of rival platforms like inDrive, which allows fare negotiation. Masakale noted that platform companies are now fiercely competing amongst themselves on pricing dynamics, pointing to market shifts and acquisitions involving rivals like inDrive. This price war directly impacts operators who are already struggling to maintain their vehicles and meet strict business obligations.
When asked about Uber’s reaction to these mounting concerns, Masakale stated that the company routinely ignores outreach, leaving stakeholders on “blue tick.” She contrasted this silence with the proactive approach of competitors like Bolt, which recently held a constructive stakeholders engagement in the Western Cape alongside the port authority and the Western Cape government.
Reflecting on Uber’s 15-year presence in the country, Masakale concluded with a sharp critique. She questioned what tangible benefits remain for local drivers working 10 to 15-hour shifts, arguing that the platform’s primary action appears to be extracting South African revenue to the United States rather than supporting the local workforce.
