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Illegal taxis have cost industry 50% of turnover - council

Cape Town – Illegal taxi operators have cost the metered taxi industry nearly 50% of turnover, causing a negative impact on economic growth, employment and improved service delivery, the Western Cape Metered Taxi Council said in its petition to the Western Cape transport department.

“[Illegal operators] continue to stifle a very intensive entrepreneurial market, which has been hijacked by foreign investment and illegal immigrants with little or no contribution to our local economy,” the petition says.

READ: Uber in bid to meet Cape Town permit requirements

Deputy chairperson of the council, Dave Drummond, sent a copy of the petition to Fin24, after handing it to the transport department in Cape Town on Thursday.

Over 200 taxi drivers took part in a legal protest march and drive to the Western Cape headquarters earlier in the day, where they handed over the petition.

“Illegal taxi operators are permitted to function within our community, sanctioned by our officials and publicly supported by senior politicians."

Watch Fin24's video interview with David Drummond:


“Using illegal taxis is no better than buying illegal contraband. Supporting corrupt practices are placing a huge burden on those very people the government wants to assist," the petition continues.

“The government wants growth, job creation and empowerment; however, the Western Cape Transport Department has made little or no effort in supporting the legitimate small to medium enterprises within the metered taxi industry.

“Our regulated agreement between the legal industry and the Western Cape Transport Department is of great concern and being used as a tool to divide and conquer from within.

“For as long as legal taxis have existed, we have had the illegal operators ever present. Sad to say, the industry and government have not made any effort to address this problem from a truly legitimate perspective.

“The transport Department attempts to legalise the illegals, [which] has now created an avenue for a flourishing illegal industry and thereby the legal industry is in a state of panic, desperation and heading towards anarchy, which can result in the violence and destruction seen in other similar industries.

“The results of neglecting an industry leads us to the present state we find the metered taxi industry in the Western Cape. It is the legal taxi industry that is in need of support and not the illegal operators who have been free and arrogant in their operations.

“We petition for your protection against illegals.

“How? By banning illegal operators and enforcing the law upon those who fail to meet the very basic criteria you demand.

“Whilst the regulator does [sic] not have an e-hailing policy as yet, the implementation of platforms like Uber has not followed the legal framework that is required by the industry.

“Foreign drivers have also managed to manipulate the industry and are spreading throughout the many hotspots recognised throughout the world, adding no value to our tourism market.

“Locals are being marginalised, creating a volatile market, leading to [the] formation of many crime syndicates, leading to a host of criminal activity within the industry.

“Duplicate licences and permits are rife amongst these groupings and are well co-ordinated and thereby protected in their position and areas of operation.

“We are willing to be compliant, adopt best practice standards, be of a world class standard, and be safe and a reliable partner to make our industry, our city, our province and a service that everyone can be proud of. For this, we need your fully committed partnership.”

Listen to Fin24's interview with Uber Cape Town GM Anthony le Roux:

Watch News24 Live's video interview with Anthony le Roux:

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