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Johannesburg - Uber rival Zebra Cabs, which is owned by South Africa’s largest financier of minibus taxis SA Taxi, is set to expand after a R300m boast from and Futuregrowth Asset Management.
Zebra Cabs owner-driver scheme has secured R300m in funding from Futuregrowth Asset Management, which will be used to provide financing to the company.
SA Taxi, which finance cabs and taxis, acquired Zebra Cabs metered taxis in 2015 as it sought to expand its business activities into relevant adjacent markets.
READ: SA meter taxis’ case against Uber – a bridge too far?
Mark Herskovits, SA Taxi capital markets director, said that after 10 years in the minibus taxi industry, the company was looking for opportunities to leverage its business model and determined that the point-to-point metered taxi industry offered the ideal synergies to scale effectively.
“We have developed a business model tailored to the unique characteristics of an industry often perceived as higher risk,” Herskovits said.
He added that SA Taxi considers credit extension to owner-drivers, or operators, as a small business loan rather than a personal loan.
“This differentiates us from the vanilla financing options offered through banks, which focus mainly on the creditworthiness of the individual.”
“This often precludes these previously disadvantaged individuals from accessing the finance needed to build a profitable small business,” Herskovits said.
READ: Inside Uber's buzzing Joburg 'Greenlight Hub'
SA Taxi, in conjunction with Futuregrowth, are offering owner-driver entrepreneurs who don't want to operate mini buses and who may not have a credit record that enables them to access vehicle financing, the means to purchase a metered taxi, along with additional support in running their small business.
Zebra Cabs offer passengers the option of booking a ride online, over the telephone or through their Android or iOS which works similar to the Uber app.
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