In a country where access to opportunity is often determined by geography and affordability, the ability to move freely is closely tied to dignity. Whether you are trying to get to work or school or even a medical appointment, mobility is an important aspect of everyday life. Yet for many South Africans, the cost of getting from one place to another is not always predictable or within reach.
South Africa’s economy is marked by wide income gaps and growing cost pressures, with global political tensions adding further strain. Beyond everyday household expenses, transport already takes up a large share of income, especially for lower and middle-income earners, which is why the way ride-hailing fares are set plays a direct role in who can afford to travel and when.
As South Africa marks Freedom Day on 27 April, it is also worth reflecting on the role mobility plays in economic freedom. The ability to move between home, work and opportunity is fundamental to participation in the economy, yet for many people living in townships and peri-urban areas, access to reliable and affordable transport remains a daily challenge.
The freedom to negotiate
Who gets to decide what a trip is worth? Most ride-hailing platforms rely on algorithmic pricing models, where fares are calculated automatically based on demand and supply as well as other variables. However, prices can rise sharply during peak periods or times of disruption, such as load shedding or heavy traffic, leaving users with little choice but to accept or abandon the trip. For drivers, earnings are similarly shaped by factors beyond their control, including commission structures and dynamic pricing shifts.
This approach assumes people can all afford the same fare, regardless of their circumstances, and in South Africa that simply isn’t the case. A fare that is manageable for one passenger may be prohibitive for another, even for the same distance at the same time of day.
By contrast, through its peer-to-peer model, inDrive allows passengers to suggest a fare, while drivers can accept, decline or counter it. As such, instead of a price set by an algorithm, it becomes an agreement between two people.
This means that pricing becomes more of an active transaction between two parties rather than a static, predetermined structure. Passengers can choose what they are willing to pay, while drivers decide if a trip makes sense for their time and costs, creating a system that is more responsive to real-life conditions.
A closer fit for South Africa’s economic reality
Negotiation is already part of how South Africans buy and sell. Think of our informal markets where people bargain for a good deal, or everyday services like hair salons in townships or home maintenance service providers where prices are discussed and agreed upon. A negotiated model for ride-hailing reflects that reality.
From a driver perspective, there is also take-home pay to consider. With lower commission structures, drivers can keep more from each trip, sometimes an extra R15 to R25 on a R100 fare. Over time, that difference adds up, especially for those relying on this work as a main income.
Flexible pricing can also improve access in areas that are often overlooked by formal transport. In places where demand is uneven or distances are longer, being able to negotiate can make trips possible for both drivers and passengers.
Research by Oxford Economics in collaboration with inDrive shows that when users can take part in setting fares, more trips are completed and outcomes are seen as fairer. In a country with wide income differences, that flexibility can help make transport more accessible.
The research also points to better matching between what passengers are willing to pay and what drivers are prepared to accept, reducing missed trips and pricing friction. In practical terms, this means fewer cancellations, more consistent demand for drivers and a system that adjusts to real-world conditions rather than working against them.
Freedom Day commemorates the moment South Africans were able to participate fully in shaping the country’s future, and mobility is closely tied to this economic freedom. If people cannot reliably reach workplaces, clients or opportunities, participation in the economy becomes harder. In a country still dealing with deep inequality and spatial divides, transport systems that expand access and allow people greater agency can play an important role in enabling that freedom.
