The South African National Taxi Council’s commercial arm, TaxiChoice, this month unveiled its new cashless e-ticketing system for minibus taxis, which contributes to the formalisation of the industry and its employees.

The new FairPay electronic fare collection system, which was lauded by Gauteng Roads and Transport MEC Dr Ismail Vadi, will be deployed to the 200 000-odd operating taxis in South Africa over the next three to five years, starting in February along the Johannesburg, Pretoria and Mabopane (JPM) route.

Launched at the Bosman Street Taxi Rank, in Pretoria, the system, owned and being implemented by TaxiChoice-owned FairPay, aims to boost accountability and reliability, increase revenue and return on investment, enhance tax contribution and promote heightened safety and security for commuters, in addition to wider operator control, TaxiChoice chairperson Jothan Msibi told attendees.

Curve Group Holdings is the project’s primary technology partner.

“The switch to the card-based system offers benefits for everyone involved,” he assured, pointing to the provisioning of value-added services and incentives.

The users of the card are provided with insurance benefits while travelling, including hospital cover, death and disability benefits, besides others, while drivers can take advantage of more “formal” employment and the attendent benefits of job security and proper records.

The GPS-containing equipment installed in the taxis will also promote improved driver behaviour and safety, with a record kept of incidents such as speeding, harsh acceleration and braking.

Digital flow visibility assists in creditworthiness checks, increasing loan and other fund-raising potential.

The data tracked through the system also enables better fleet management and route planning, as it provides a more accurate understanding of the volumes of people making use of specific routes and the times of use.

This information can also be shared with government, enabling it to make data-driven decisions when it comes to ensuring that underserviced areas get the required level of transportation services they require.

National Treasury intergovernmental relations deputy director-general Malijeng Ngqaleni, for instance, commented in July at the Southern African Transport Conference that the government public transport subsidy system was skewed toward the middle class at the expense of the clearly important industry.

The first phase along the JPM route is set to be rolled out in February, with commuters able to load their FairPay cards through point of sale devices and kiosks operated by ‘marshals’ at taxi ranks.

The JPM Taxi Association has been involved in previous pilot projects through various phases of testing and has experience in dealing with the cashless system over the past five years.

“The system has now been tested thoroughly and is fully compliant with all laws and regulations, as well as the requirements of all the parties involved. We are ready for the roll-out,” Msibi concluded.