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Ride-hailing project may offer significant business opportunities

by Azwidohwi Mamphiswana
August 21, 2025
in Business
Reading Time: 3 mins read
A A
Gauteng MEC for Transport, Kedibone Diale-Tlabela, announced plans to develop a new e-hailing app that will be government-led.

Gauteng MEC for Transport, Kedibone Diale-Tlabela, announced plans to develop a new e-hailing app that will be government-led.

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 Gauteng is preparing to challenge global e-hailing giants Uber and Bolt with a government-backed app designed to improve safety, accountability and local economic opportunities.

The project could reshape the province’s ride-hailing market and create openings for local tech entrepreneurs.

Gauteng transport MEC Kedibone Diale-Tlabela said the province was exploring multiple proposals to bring the app to life.

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“It’s an opportunity for us to come up with a Gauteng e-hailing app, which all of us will be responsible for,” she told reporters, adding that the Gautrain team has been tasked with helping develop the platform.

Safety would be central to the app’s design.

“We know some apps are notorious for not being safe, and as a result, all of us have moved away from using those apps,” Diale-Tlabela explained.

“At the end of the day, as government, we are held responsible. That’s why you see us saying, let’s work on our own e-hailing app, that you, as society and communities in Gauteng, can hold us responsible,” she said.

She also urged the national Transport Department to finalise industry regulations, stressing that Gauteng aimed to organise its ride-hailing sector independently and responsibly.

President Cyril Ramaphosa signed amendments to the National Land Transport Act (NLTA) into law in June 2024, enabling ride-hailing operators to apply for formal operating licences.

The change, after a 13-year wait, now allows Uber, Bolt and new entrants to operate legally under a standard framework, while Gauteng develops its platform.

The sector is currently volatile.

Diale-Tlabela’s statement comes after an e-hailing driver was killed and others wounded during fight between taxi and e-hailing drivers at Maponya Mall in Soweto last week.

Despite the risks, Gauteng’s e-hailing project could offer significant business opportunities, particularly for local software entrepreneurs.

Companies could be involved in app development, AI-powered safety and verification systems, digital payment solutions, real-time tracking, data analytics, and ecosystem services like loyalty and delivery integrations.

By prioritising local tech firms, Gauteng could create long-term contracts and support the growth of South Africa’s digital economy.

Business strategist Nomsa Khumalo from Frontier Advisory noted that if Gauteng successfully implemented the project, it could become a blueprint for public-private digital partnerships across Africa.

“But if it fails, it will reinforce the perception that government cannot compete in consumer technology markets,” she said.

Azwi@vutivibusiness.co.za

Tags: Gauteng e-hailing appGovernment backed appUber and BoltUber and economyUber and government
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