Minibus taxi operators are more profitable than a year ago despite relatively high vehicle and fuel inflation, their main financier Transaction Capital said in its results statement on Tuesday. The average cost of minibus taxis rose about 14% to R400,000 from R350,000, and petrol prices and driver wages increased by about 6% over the year to end-September. Transaction Capital said data from its subsidiary SA Taxi showed minibus taxi operators managed to improve their profitability despite these cost increases. "Profitability improvements are primarily driven by fare increases of 5%-7% over the last 12 months. In addition, a greater proportion of commuters are choosing minibus taxis over bus or rail due to competitive pricing, convenience and accessibility; and increasing commuter density due to urbanisation has also increased profitability for operators," Transaction Capital said. The group said demand for minibus taxis exceeded supply. Of about 200,000 minibus taxis operating in SA...
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