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Uber on the brink of collapse in South Africa: Key reasons WHY

Once hailed as the gold standard of ride-hailing in South Africa, Uber is now staring down the barrel of a full-scale collapse.

Mounting safety concerns, deteriorating service quality, and deepening public distrust are threatening to undo more than a decade of brand equity and dominance in the country’s urban transport market.

From trailblazer to troubled

Launched in 2013 to much fanfare, Uber rapidly became synonymous with safe, reliable, and professional transportation.

It offered tracking technology, premium vehicles, and professional drivers – many of them university graduates supplementing their income.

But by mid-2025, that narrative has been flipped on its head.

What was once a seamless and secure experience is now plagued by problems that appear too large to ignore.

A crisis of safety

In the last two years alone, multiple high-profile incidents involving rider assault, robbery, and suspected driver collusion have rocked Uber’s reputation.

Victims include celebrities like radio host Anele Mdoda, while everyday users report being targeted or feeling unsafe – particularly in areas like Sandton and Eastgate, where e-hailing drivers are harassed by local taxi associations.

Uber drivers aren’t spared either.

Attacks, extortion, and car damage have become common, with some drivers fearing for their lives.

The E-hailing Partners Council has warned that drivers are being pushed out of key economic zones through violent intimidation, eroding their ability to earn and eroding Uber’s supply chain.

Deteriorating vehicles

Uber’s once pristine fleet is now a shadow of its former self.

Riders increasingly complain about dirty, poorly maintained vehicles – often with broken air conditioners, food smells, and questionable hygiene.

Even Uber Black, once the elite tier, is now described by users as subpar.

Drivers blame tight margins, soaring fuel prices, and Uber’s commission-heavy model for their inability to maintain vehicle standards.

“We’re operating at a loss,” said one Cape Town driver, “and Uber won’t listen.”

Broken platform, broken trust

Cancellations, no-shows, and billing inconsistencies are now commonplace.

Customers report being overcharged, penalised for cancelled rides they didn’t cancel, and ignored by Uber’s customer service.

Internal sources have revealed that some drivers exploit the system by leaving phones at e-hailing zones overnight to hold airport queue positions, resulting in false availability and long rider delays.

What used to be a reliable app experience is now seen by many as a gamble.

Public sentiment turning sour

Once ranked among the highest-rated services on customer platforms like HelloPeter, Uber South Africa now sees a flood of one-star reviews, many citing fear, frustration, and distrust.

With competition from Bolt, inDrive, and new players like private shuttle services and even SecureFire’s emergency response fleet, Uber is losing the competitive edge it once monopolised.

Systemic collapse looms

Experts say Uber is in danger of entering a service death spiral: poor quality leads to customer loss, which means lower income for drivers, leading to even worse service, and so on.

“Uber isn’t just facing a reputational crisis – it’s an operational and structural failure,” says transport analyst Dineo Mokoena.

“Without bold intervention, we could see Uber’s effective exit from key South African markets within the next 12 to 24 months.”

Uber responds

In a statement, Uber said it remains committed to safety and quality, and that it is “investing in in-app features and driver training.”

But for many riders and drivers, these promises feel too little, too late.

The bottom line

Uber South Africa is on the edge of collapse – not from external competition alone, but from its failure to maintain the standards that once made it great.

If the company cannot quickly regain the trust of riders, protect its drivers, and restore service quality, its ride in South Africa may soon be over.

Have you noticed a decline in the standard of Uber across the board?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1

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