MINIBUS TAXIS ARE THE LARGEST AND MOST VITAL MODE OF TRANSPORT WITHIN THE INTEGRATED PUBLIC TRANSPORT NETWORK
Commuters continue to rely on minibus taxis given their accessibility, affordability, reliability, convenience, flexibility and competitive pricing.
DEMAND FOR MINIBUS TAXIS STILL EXCEEDING SUPPLY
Financed and/or insured
SA Taxi's monthly applications
However, the minibus taxi industry has recovered quickly and is transitioning closer to normal activity as the economy reopens. Due to the defensive nature of the minibus taxi industry, minibus taxi operators are still able to afford loan and insurance instalments supported by fare increases and lower interest rates.
Average repo rate1
Current repo rate2
SA TAXI’S INTEREST RATES
Average interest rate at loan origination
Impact on monthly instalment3
14.5% to 26.75%
Risk-based pricing interest rate range
Toyota HiAce (diesel) price4
Increase in Toyota vehicle prices (with further 1.5% increase in October 2020)
FUEL PRICES INCLUDING FUEL LEVIES
R14.84 per litre
Petrol price5, down 4%
R13.23 per litre
Diesel price5, down 8%
MINIBUS TAXI INDUSTRY TAX CONTRIBUTION7
VAT contribution on vehicle sales per year
fuel levies paid per year
Road Accident Fund contribution per year
MINIBUS TAXI FARE INCREASES IN 2020
Average fare increases
TAXI RECAPITALISATION PROGRAMME
Minibus taxi scrapping allowance
Increased 36% in April 2019
Taxi Recapitalisation Programme initiated by government in 2006
SA Taxi’s vertically integrated business model enables it to participate in margin across the minibus taxi value chain. SA Taxi applies and deepens its specialist competencies into adjacent market sectors, underpinned by its data and telematics capabilities, to deliver a comprehensive service to the minibus taxi industry, supporting its growth and sustainability.
Mechanical refurbishment, autobody repair, parts procurement and distribution, and salvage
Dedicated autobody and mechanical refurbishment facility, servicing SA Taxi Finance and SA Taxi Protect.
Rebuilds high-quality pre-owned minibus taxis, and mitigates credit risk and insurance losses by lowering:
~250 per month
Internal vehicle refurbishment capacity
Recovery rates on repossession, refurbishment and resale
Down ~4 to ~6%
Average refurbishment cost
Procurement, salvage, distribution and retail of well-priced new and refurbished vehicle parts for distribution into SA Taxi Auto Repairs and to external repairers, and retail to minibus taxi operators.
Supports lower cost of refurbishment through:
~R14 million per month
Supplied to SA Taxi Auto Repairs in 2020 (2019: ~R6 million)
~R2.8 million per month
Retail sales revenue to minibus taxi operators (2019: ~R3 million)
~R2.4 million per month
Retail sales revenue to external autobody repairers (2019: <R1 million)
Workshop, storage and retail space
Data and telematics capabilities are core to SA Taxi’s business activities and are key to mitigating risk. The division continues to enrich its proprietary database with data accumulated daily from each minibus taxi and applied to credit decisions, collections, repossessions and insurance activities.
In addition, SA Taxi continues to invest in IT, data management and predictive analytics, as well as technologies that improve processing capabilities and extract operational efficiencies.
SA Taxi has been tracking minibus taxis for ~13 years.
On average, each of SA Taxi’s vehicles travels ~6 100 kms per month.
SA Taxi’s vehicles operate on ~5 500 routes covering ~800 000 kms.
Developmental credit provider, offering bespoke vehicle finance for the minibus taxi industry. Finances new vehicles and high-quality pre-owned minibus taxis refurbished by SA Taxi Auto Repairs.
Gross loans and advances
Loans on book
Vehicles per client
Average cost of borrowing
Net interest margin
Non-performing loan ratio
Credit loss ratio
Risk-adjusted net interest margin (2019: 9.0%)
Bespoke, comprehensive vehicle insurance and value-added products, tailored for the minibus taxi industry.
Brokers in broker network to expand total addressable market
Products per client
Majority of financed clients choose to be insured by SA Taxi1.
Procurement and retail of new and pre-owned minibus taxis. SA Taxi Direct’s pre-owned minibus taxis are rebuilt to a high quality and are mechanically robust, providing a reliable and affordable alternative to buying new vehicles in this challenging environment.
Vehicle turnover in 2020
Average retail margin per vehicle
Vehicles sold through SA Taxi Direct results in product margin earned, a high take-up of SA Taxi insurance and allied products, and an improved credit performance due to a better-informed customer.
Rewards programmes, including fuel, tyres and parts for the minibus taxi industry.
Launched April 2018 in partnership with
Launched October 2019 in partnership with
Cards issued in 2020
Litres of fuel purchased in 2020
Original tyre purchase price
Reduced price for taxi operators2
Number of tyres sold in 2020