• NTA says the taxi industry is faced with serious financial challenges.
• Taxi operators are caught between parking their taxis and increasing fares to avoid operating at a total loss.
• Minister Fikile Mbalula has threatened to take the matter to the Competition Commission.

The National Taxi Alliance (NTA) has noted with mixed feelings the announcement by some of its primary taxi associations of fare increases by more than double, on most Joburg routes, from next week.

This came after taxi associations in Alexandra and Johannesburg announced that passengers who were paying R11 to travel from the township to Sandton would soon be paying R30 per trip.

The associations have complained of lost revenue due to the lockdown regulations and reduced loading capacity.

NTA spokesperson Theo Malele said they were aware the industry faced serious and devastating financial effects due to the lockdown regulations.

"On the one hand, we understand the negative impact these increases will have on the commuting public, and on the other we understand that taxi operators are caught between parking their taxis and increasing fares to avoid operating at a total loss," said Malele.

He said they have been having intense negotiations with government regarding the Covid-19 relief fund.

"We have now received the final offer from government with great disappointment. We will be issuing a full statement on that matter after our soon to be held meeting with Minister Fikile Mbalula and his department.

"NTA is gravely concerned about the effects of both the 70% loading capacity and the complete lockdown of the inter-provincial and cross border taxis since 27 March," said Malele.

Malele said the regulations are effectively impoverishing the taxi industry and all those who directly and indirectly depend on it for a living.

The NTA has promised to announce its course of action immediately after meeting with Mbalula and his department.

"We are hopeful that the cordial working relationship we have with Mbalula and his department will mitigate against antagonist outcomes and conclusions. We therefore, appeal to our members and the commuting public to exercise a little patience while we are concluding these important conclusions," said Malele.

Meanwhile, the South African National Taxi Council (Santaco) said fare increases would impact every association across the country. 

Santaco secretary Ralph Jones told News24 they would be forced to implement an increase from R13 to R30 from Monday as a result of the impact of the lockdown on the industry.

Mbalula has urged associations and operators to be mindful of the poor when redetermining fares, especially in light of the financial relief that the government is finalising in order to assist the industry.

Mbalula also reminded the taxi industry that current regulations prevent illegal profiteering and that he is enjoined by the regulations to refer the matter to the Competition Commission to assess if the fare increases are fair and justifiable.