South African Uber rival using blockchain

South African e-hailing platform Twytch plans to take on foreign competitors like Bolt and Uber by using blockchain technology to tend to a concern on the minds of many South Africans — safety.
The platform announced on Monday said it had identified numerous gaps in the market that will differentiate it from e-hailers already well-established in the South African market.
One of these is using blockchain technology to verify users’ credentials on the platform — both passengers and drivers.
Twytch founder and CEO Don Reddy told Lotus FM that each ride would have a verified passenger and a verified driver with their credentials stored cryptographically on a decentralised blockchain.
This makes the data impossible to forge or alter, Reddy said.
While passenger safety was one of the significant concerns when e-hailing platforms launched in South Africa, the safety of drivers has recently become a prominent issue as many are targeted for their smartphones or vehicles.
Reddy also said the platform would appeal to drivers and treat them more like employees than independent contractors due to the benefits the company offers.
“What we realise in the e-hailing industry is that there are many gaps in the market as there are no driver benefits, such as medical insurance or driver death or disability benefits,” he said.
“We are differentiating ourselves from other platforms by offering drivers these benefits, and we have eliminated the commission-based model.”
Twytch said it partnered with Momentum to offer drivers health benefits and FNB to provide financial solutions.
No longer paying drivers a commission means they will be compensated per kilometre and minute.
Twytch will also feature a surge-free pricing system, with passengers paying fixed rates based on real-time conditions.
Riders will also only be able to make card and in-app wallet payments.
Reddy said the initial rollout will involve hiring a limited number of drivers in South Africa’s major cities: 5,000 in Joburg, 3,000 in Cape Town, 2,500 in Pretoria, and 2,000 in Durban.
This is to ensure there is a steady supply of drivers relative to the number of passengers.
The Twytch app for passengers and drivers will become available in February, said Reddy.
Exactly what drivers want
These driver-centric features may just be able to win over drivers who have been complaining about working conditions under Bolt, inDrive, and Uber.
In September 2024, Cape Town e-hailing drivers took to the streets to demand that South Africa impose more stringent regulations on the industry.
The drivers said they wanted reinstatement for those unfairly removed from platforms, higher pay, and improved safety features.
The Western Cape E-Hailing Association (WCEA) secretary-general, Omar Parker, criticised platforms, saying that drivers are paid little because companies’ commission rates are very high.
One driver on strike said that Uber had taken 42% of the R4,000 he had earned, leaving him with R2,320. He said his fuel expenses for the day were R1,700.
Drivers were also frustrated that e-hailing platforms had not adjusted their fairs despite increasing fuel prices.
The WCEA said it demanded R13.50 per kilometre instead of Uber’s rate of R5 for Uber Go, under R6 for Uber X, and roughly R10 for Uber XL.
Bolt responded to the strike by saying it was opening a driver engagement centre for drivers to discuss these matters.
Uber said it was aware of the protest and committed to maintaining open communication.