E-Hailing Overtakes Vehicle Ownership, Outpaces Fuel Spend

Why It Matters

The trend signals a fundamental re‑balancing of urban mobility costs, pressuring traditional car ownership models and opening revenue opportunities for on‑demand transport platforms. It also highlights ride‑hailing as a financial safety net for gig workers in a constrained labour market.

Key Takeaways

• 58% of surveyed South Africans increased ride‑hailing use year‑on‑year
• 70% of 18‑30‑year‑olds reported higher ride‑hailing usage
• Johannesburg leads with 67% of residents boosting ride‑hailing spend
• Fuel still accounts for 82% of total mobility spend

Pulse Analysis

Ride‑hailing’s acceleration in South Africa reflects a broader global pivot toward flexible, app‑based mobility. While fuel remains the bulk of transportation expenditure, the SpendTrend26 data shows that younger, higher‑earning consumers are prioritizing convenience and time savings over the fixed costs of car ownership. This shift is amplified in metropolitan hubs like Johannesburg, where over two‑thirds of residents report increased ride‑hailing activity, suggesting that urban infrastructure and traffic congestion are further nudging commuters toward on‑demand services.

The financial implications are notable. With fuel payment volumes up 14% year‑on‑year but average spend per card down 7%, consumers appear to be moderating traditional fuel purchases while allocating more discretionary spend to ride‑hailing, especially during peak holiday periods. For providers such as Bolt and Uber, this creates a dual opportunity: capture higher transaction volumes and position their platforms as supplemental income streams for gig workers—70% of whom rely on ride‑hailing for flexible earnings. The data underscores the sector’s role as an informal safety net in a tight labour market, reinforcing its resilience against economic headwinds.

For automakers and insurers, the trend signals a need to rethink product offerings. As ownership costs are weighed against on‑demand alternatives, subscription models, usage‑based insurance, and integrated mobility packages may become more attractive. Meanwhile, policymakers must consider the impact on traffic patterns, emissions, and public transport funding as ride‑hailing embeds itself deeper into daily commutes. The South African case provides a microcosm of how emerging economies can leapfrog traditional car‑centric models toward a diversified mobility ecosystem.