Our operations as at 30 September 2018


Highlights:
Initiatives proving broad based participation in minibus taxi industry value chain
  • "BLACK ELITE" fuel loyalty programme launched in April 2018
    >1.3 million litres of fuel purchased
    >6 300 cards distributed
  • Taxi Auto Parts (TAP) launched in March 2018
    Supplying affordable, quality refurbished & new parts
  • Project Refentse launched in March 2018
    Certificated training for formally unqualified technicians at ranks funded & facilitated by SA Taxi Foundation
  • Taximart dealership footprint expanded
    Polokwane dealership opened October 2018
  • Patrol vehicles donated to industry
    Invested >R20 million in >70 patrol vehicles


Download a PDF that contextualises South Africa’s taxi market and SA Taxi’s impact .


Our portfolio:

23% women owned SMEs in SA Taxi's loan portfolio
100% black owned SMEs in SA Taxi's loan portfolio
Vehicles financed & insured >30 000
Average age of vehicle: 3.9 YEARS


Societal relevance

SA Taxi operates on the premise of developmental or empowerment financing, filling a critical funding gap by supporting entrepreneurs who would otherwise remain outside the formal economy, thus also contributing to job creation.

Its focus on financing SMEs delivers both a commercial and social benefit through a shared value approach in a critical pillar of South Africa’s public transport sector.

SME empowerment and economic transformation


100% black owned SMEs in SA Taxi's loan portfolio
23% women owned SMEs in SA Taxi's loan portfolio
23% under the age of 35 years in SA Taxi's loan portfolio
R3.3 billion loans originated creating 7 734 SMEs in FY18
R21.9 billion loans originated creating 72 423 SMEs since 2008

Industry sustainability

7 734 new minibus taxis on the road in FY18

Sustainable job creation

~1.8 direct jobs per taxi vehicle
>130 000 direct jobs created by SA Taxi's fleet since 2008
~600 000 indirect jobs enabled by the minibus taxi industry
>13 000 direct jobs created by SA Taxi's fleet in FY18

Environmental sustainability

SA Taxi enables replacement of aged and less efficiant vehicles with new and reduced-emission vehicles




The typical minibus taxi is a 16-seater, typically white in colour with the most common model being the Toyota Quantum Sesfikile. Taxis operate an unscheduled service on fixed routes managed by taxi associations.

Taxis will typically depart from fixed terminals but stop anywhere along their route to pick up and drop off passengers. Passengers hail taxis using hand signals to indicate where they are travelling. Taxi ranks are hives of activity and market places establish themselves around the ranks to service the commuters.

Regional taxi councils determine the fares for each route considered to be affordable for the lower income population of the country. Fares are paid in cash and in some areas of the country the taxi owner employs a conductor to manage fares whilst in others, passengers themselves manage the cash by passing it to the driver.

SA Taxi has developed its own innovative developmental credit philosophy and strategy. This approach is built on the proprietary data and industry knowledge amassed over many years. This niche capability evaluates each taxi owner as a small business and not solely on their individual credit score, enabling it to extend credit in this niche, under-served market segment.

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SA Taxi Direct dealership was established in 2015, selling both new and pre-owned premium taxis. Due to strong relationships with Toyota, SA Taxi is allocated approximately 70 new Toyota Sesfikiles per month to sell alongside the pre-owned vehicles.

This channel offers SA Taxi greater returns on the entire vehicle deal and provides a profitable and reliable marketplace for sale of refurbished vehicles due to the following factors:

Margin off sale
SA Taxi is able to realise a considerable margin on the sale as the transaction occurs on their own dealership and the pre-owned vehicles have been through Taximart.
Better credit risk screening
Since SA Taxi has greater control and line of sight of the interaction that occurs at the point of sale, it is able to ask the required questions to achieve a better credit risk screening.
Insurance take up is higher
SA Taxi’s accredited sales agents provide customers with key insights on the value of insuring their vehicle, resulting in a higher insurance take up.

Taximart was established in 2009 to refurbish primarily repossessed minibus taxis in the secondary market and improve SA Taxi’s recoveries.

Taximart services include repair and maintenance which is completed timeously ensuring that owners’ vehicles are back on the road as soon as possible.

The ability to refurbish and resale has enabled SA Taxi to reduce their loss ratios as by recovering a significant percentage of the loan value of repossessed vehicles. This is achieved through reducing costs, improving turnaround times, improving product quality and providing higher returns than auction prices. Taximart has also led to reduced insurance cost of claims.

Efficiencies created through Taximart arise from the following:
  • Economies of scale;
  • Focus on a narrow product line
  • Bulk procurement power; and
  • Time saved by controlling the entire process in-house.
Training is paramount with dedicated Toyota, Nissan and Mercedes training centres having been established, where staff are equipped with the necessary knowledge and knowhow to give effect to our vision of quality and efficiency.

SA Taxi originates its loans and allied services through three key distribution channels: affiliated dealers, non-affiliated dealers and SA Taxi's own retail channel. SA Taxi’s retail dealership achieves higher returns and provides a profitable and reliable marketplace for the sale of new and refurbished pre‐owned vehicles.

  • ~800 million annual vehicle turnover in SA Taxi retail dealership

  • ̴8% average retail margin per vehicle
  • SA Taxi has reduced its loss ratios through reducing refurbishment costs and improving both turnaround times and product quality. The efficiencies created through SA Taxi’s own facility arise from economies of scale and its focus on specific vehicle types, allowing for specialisation, bulk procurement power and time saved by controlling the entire process in-house.

    >20 000m2 combined auto body repair and mechanical refurbishment centres

    SA Taxi’s ability to refurbish and refinance recovered vehicles enables it to participate in the liquid pre-owned market, ensuring retention of asset value.

  • >73% recovery rates on repossession, refurbishment and resale

In 2015 SA Taxi launched a point-to-point taxi offering which includes financial services. The taxi owner-drivers are also given access to the stand alone ancillary services such as insurance and maintenance as well as the Zebra Cabs’ own taxi platform.

The Zebra Cabs platform was developed to further support the taxi owner-drivers and their respective SMEs focusing on all owner-drivers financed through SA Taxi as well as those looking for an alternative taxi platform, provided they meet the standards set by Zebra Cabs in terms of the vehicle type and background checks.

The target market for point-to-point is similar to the minibus taxi market as the target customer is an existing or aspiring vehicle owner with limited access to traditional finance.

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All financed vehicles are required to have comprehensive insurance. SA Taxi has designed its highly competitive comprehensive insurance products that are sold through its insurance cell captive entity established in partnership with Guardrisk Insurance Company.

Expanding client base:

  • >85% of SA Taxi’s minibus owners insure with SA Taxi1
    1100% of taxis financed by SA Taxi are fully insured.
  • Gross written premium grew 23% to R687 million for FY18

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