What is a Transport Business?
A transportation business is any business that has a hand in transporting people or goods. It can also have to do with providing transportation for other business owners who need help linking their products to their actual business.
Transport Business Ideas In South Africa
Best Transport Business Ideas In South Africa:
TAXI BUSINESS
The South African taxi industry has been growing at a rapid rate despite the current challenging economy. Currently, the industry is estimated to be worth an estimated R50 billion in a year and more than 60% of households in South Africa use minibus taxis for their daily transportation.
The taxi business in the country remains profitable even during recessions. As long as there is a need for transportation the demand for minibus taxis will always be there.
METER TAXI BUSINESS
Also, another lucrative transport business to consider in South Africa is a meter taxi business. A meter taxi is a vehicle authorized to carry a maximum of 9 people and they offer valuable transport services to many South Africans.
It is estimated that 10% of the South African taxi Industry constitutes metered taxis. Although there isn’t enough data on the meter taxi operations it is estimated that 20 000 meter taxis are on the road.
The meter taxi business has been negatively affected by the new smartphone-based transport services such as Uber and Bolt.
TRUCKING BUSINESS
Trucks are some of the most important movers of goods between production, storage, and retail in any country thus, there is always a need for trucking businesses in any thriving economy. As such, trucks play an important role in ensuring that the economy runs smoothly.
The transportation of goods is broad, there are so many trucking services you can choose from. You can transport liquid chemicals, food, other vehicles, machinery, construction equipment, and mineral ore to name a few.
It is advisable to purchase multi-purpose equipment that will allow you to transport various goods and provide a variety of services.
UBER OR BOLT DRIVER
Another profitable transportation business is becoming an Uber or Bolt driver. Uber and Bolt provide a platform where drivers and people who need transport can be connected. You can easily sign up on either application and support yourself full-time by driving for Uber or Bolt.
The process is quick and convenient for both the driver and the customers. On average, you can earn up to R8 000 driving for either Bolt or Uber.
Both firms take a certain percentage commission for every ride you make plus you may get driver bonuses and rewards if you qualify.
LONG-DISTANCE BUS SERVICES
People are always traveling to different cities, and provinces, as well as to neighboring countries regularly. Currently, only a few big companies such as Intercape, Autopax, and Unitrans hold more than half of the market share, and a few small players when it comes to long-distance travel.
There is a huge demand for long-distance bus services in South Africa. An estimated 80% of people depend on public transportation such as minibusses, trains, and buses for both long and short-distance travel.
COURIER SERVICES
Setting up a courier company can be a profitable transport services business. Goods are always on the move from small parcels, to large containers being picked up and dropped off all over South Africa. The courier express and parcel sector is estimated to be worth R20 billion.
The major industry players range from multinational companies offering global services to small companies and single individuals with a bakkie or scooter.
Most of the major courier companies in the country are subsidiaries of international companies including Aramex (Aramex South Africa, PostNet), DHL (DHL Express), and FedEx (FedEx Express South Africa) to name a few.
FOOD DELIVERY
Delivering fast food is another transport business that you can consider. Food delivery services have been growing at a rate much faster than the international standard in South Africa.
The food delivery industry has not been fully penetrated with 2 major companies, Mr D Foods and UberEATS representing approximately 90% of the entire South African third-party delivery market.
Mr D Food alone has over 270,000 monthly users who actively make purchases. Many fast food establishments also offer their delivery services but they have not yet met the current demand for fast food deliveries.