Ride-hailing in South Africa remains predominantly cash-based, with over 80% of transactions still settled in physical currency, according to a joint report by Bolt and research firm Ipsos. This situation contrasts sharply with Nigeria, where more than 85% of trips are paid through cashless channels, highlighting significant structural differences between the two markets. In Nigeria, ride-hailing constitutes 24% of the country’s $5.17 billion gig economy, which supports approximately 3 million workers, while e-commerce leads the sector at 38%. In comparison, South Africa’s gig economy is valued at $5.03 billion, involving between 1.8 million and 2 million participants, with ride-hailing and e-commerce each accounting for 29% of the activity.
The persistence of cash transactions in South Africa persists despite an evolving payments landscape. The South African Reserve Bank reports that cash still represents 56% of all consumer transactions by volume. Although digital payments are expanding through cards, mobile wallets, and systems like PayShap, cash remains deeply entrenched, particularly among informal and low-income users. A 2025 Stitch report revealed that more than 90% of South Africans utilized non-traditional payment methods in the past year; however, ride-hailing has not fully embraced this shift. In Nigeria, platforms adapted their fare structures following the removal of the fuel subsidy in May 2023 and introduced faster access to driver earnings, contributing to the growth of cashless ride-hailing.
In South Africa, the Reserve Bank published a digital payments roadmap in 2024, yet ride-hailing continues to rely heavily on cash. This payment divide is impacting drivers’ access to credit. Nigerian platforms are partnering with fintech companies to offer micro-loans and vehicle financing, thereby expanding drivers’ access to formal banking and digital credit. For instance, Bolt collaborates with Advancly to provide in-app micro-loans. Conversely, in South Africa, where cash dominates, drivers have had comparatively less exposure to such financial products, although fintech collaborations with local banks are beginning to improve access to instant transfers, micro-loans, and insurance.
Beyond payment methods, the Bolt-Ipsos survey of 250 South African gig workers found that 70% use ride-hailing to supplement other earnings, while 30% rely on it as their primary income source. More than half of the participants earn 50% or less of their total income from the platform. Despite this, over 90% reported an improvement in their standard of living since joining. Earnings are typically allocated to essentials such as food, rent, transport, and education, with 32% of respondents citing financial independence as the most valued benefit. Simo Kalajdzic, Senior Operations Manager at Bolt, emphasized, “In South Africa’s current economic climate, ride-hailing is no longer just about mobility. It’s about opportunity. Many drivers are using platforms like Bolt to build income streams, support their households, and take control of their financial futures.”
The sector remains male-dominated in both markets, with 92% of South African ride-hailing participants being men, compared to 96% in Nigeria. In Nigeria, most drivers have been active for over a year, indicating sustained participation. Regarding regulation, South Africa’s National Land Transport Amendment Act of 2023 formally recognized ride-hailing operators as part of the public transport system for the first time. This legislation introduced licensing requirements, safety features such as panic buttons, and standardized fares. Additionally, platforms are exploring ways to reduce operating costs; for example, in 2025, Uber launched its first fleet of electric vehicles in South Africa.
Comments are closed for this story.