Only 30% of households in South Africa own a car‚ which means 70% to 80% of the population depends on taxis‚ buses and trains.

This alarming fact emerged when the Competition Commission announced on Friday that a transport market inquiry will assess the general state of competition in transport because it “plays a crucial role” for economic inclusiveness in the country.

Transportation costs hammer household income. The commission estimates the hourly wage is reduced by 40% or more and is “likely to a detrimental effect on consumer welfare”‚ particularly on low-income households.

The purpose of the inquiry‚ according to the commission‚ is to identify factors that “lessen‚ prevent or distort competition”‚ which reduce the overall benefits to consumers.

The survey will cover both the public and private sectors. It will assess minibus taxis‚ localised taxis‚ metered taxis‚ app-based taxi services‚ train services (dominated by Prasa) including Metrorail and Gautrain (the cost restricts it to upper income groups)‚ and buses.

Buses that fall into the survey are commuter and long-distance buses given that the majority of the population relies on these buses‚ according to the commission.

The mini-bus taxi sector grew significantly to meet the needs of commuters who relied the public bus and rail services.

Uber‚ the ride-sharing app‚ entered the market in 2013‚ with a few local services picking up on the trend.

The ongoing conflict between metered taxis and the app-based Uber is one visible outcome of problems with transport – as is the violence between rival minibus taxi groups.

The commission said it has‚ so far‚ received 10 complaints of anti-competitive conduct. These include:

* The price of bus fares‚ as well as fares during holiday periods in particular in December;

* Subsidised transport which is likely to create an uneven playing field for nonsubsidised transport; and

* Limitations on which routes and transport providers can operate in;

Jesse Harber‚ a researcher at the Guateng City-Regional Observatory who focuses on urban development‚ said Johannesburg’s public transport faces significant challenges.

“The city has a whole set of providers that deliver overlapping parts of the public transport network‚” he said.

Part of the rationale for the commission’s inquiry is “[c]ontradicting objectives between government policies and the promotion of competition” noting the government’s plans for integrated public transport.

The inquiry is to begin on June 7 is expected to take two years to complete.