South Africa’s on-demand delivery services face backlash over poor working conditions, low pay, and safety concerns for drivers.
Unfair Work Practices in South Africa’s Delivery Industry
On-demand delivery services like Uber Eats, Woolies Dash, and Checkers Sixty60 are under fire for allegedly prioritizing profits over the welfare of their drivers. Critics argue that these companies exploit their workforce by classifying them as third-party contractors rather than full-time employees, thereby avoiding key financial obligations such as minimum wage, insurance, and vehicle maintenance costs.
A Race to the Bottom: Drivers Bear the Costs
Rob Handfield-Jones, managing director of Driving.co.za, describes South Africa’s delivery industry as a classic case of big business socializing risk while capitalizing on profits. By hiring riders as independent contractors, these companies shift major expenses—such as fuel, vehicle maintenance, and insurance—onto the drivers themselves.
Instead of earning a stable salary, most delivery drivers are paid on a per-trip commission basis, often leading to extreme financial strain. Some even rent their motorcycles, which significantly reduces their daily earnings.
Handfield-Jones condemns these practices, arguing that drivers are forced to work under dangerous conditions for minimal pay, with little regard for their well-being.
Safety Concerns and High Accident Rates
The Motorcycle Safety Institute founder, Hein Jonker, has echoed these concerns, emphasizing the urgent need for proper training, safety gear, and insurance coverage for delivery riders.
The industry’s per-trip payment model incentivizes reckless driving, as riders rush to complete as many deliveries as possible. This increases the risk of accidents and fatalities, leading to devastating consequences for both drivers and their families.
Handfield-Jones highlights the overwhelming number of injured or deceased riders arriving at trauma units each week. He argues that the true cost of this exploitative system is unfairly shifted onto taxpayers, who ultimately bear the financial burden of emergency medical care, road accidents, and infrastructure damage.
Should SARS Intervene?
Beyond safety concerns, critics believe that South African tax laws are being ignored. According to Handfield-Jones, the South African Revenue Service (SARS) should classify delivery drivers as employees, requiring companies to register them for tax and provide fair wages.
Despite having the legal authority to enforce such protections, SARS has remained passive, possibly due to the assumption that these workers earn too little to make tax enforcement worthwhile.
Is There a Better Way?
Delivery companies argue that their business model would collapse if they had to employ drivers full-time and provide vehicles. However, pathology labs and other industries have successfully implemented in-house delivery teams, proving that fair employment practices are possible.
As public awareness of these exploitative practices grows, pressure is mounting for regulatory changes to protect South Africa’s gig economy workers.
Final Thoughts
The on-demand delivery industry in South Africa is under intense scrutiny for its treatment of workers. While companies like Uber Eats, Woolies Dash, and Checkers Sixty60 benefit from low-cost labor, the burden of their cost-cutting practices falls on drivers, hospitals, and taxpayers.
If regulatory bodies like SARS step in, and public pressure continues to rise, South Africa could see sweeping reforms in the gig economy—ensuring that drivers receive the fair pay, benefits, and safety measures they deserve.
Also read: Zulzi Beats Checkers Sixty60 and Pick n Pay in Grocery Delivery Price Comparison
