In Kenya, Uber faces far more robust competition than in SA
With Uber’s first-mover advantage in SA’s ride-sharing market, there is concern it is growing into a monopoly, write Thando Vilakazi and Shingie Chisoro Dube
The entry of Uber into passenger transport markets across the world has brought disruptive competition with substantial benefits to consumers. Africa is no exception. The mobile technology ride-sharing service is currently the dominant such app used in Africa. It has rapidly grown its African footprint and has operations in eight countries: Egypt, Ghana, Kenya, Morocco, Nigeria, Uganda, Tanzania and SA. Disruptive competition through technology can bring substantial benefits to consumers, but it also raises competition and socioeconomic issues. These result mainly from the displacement of traditional service providers. These issues cannot be ignored in a developing country. Regulation needs to at least ensure that conditions for competition are consistent and not only free but fair across competing services where possible. There are also concerns that Uber, with its first-mover advantage within the ride-sharing market, is growing into a monopoly despite the benefits to consumers. Th...
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