South Africa Ride-Hailing 80% Cash-Based, Bolt-Ipsos Report

More than 80% of ride-hailing transactions in South Africa are processed in cash, according to a Bolt gig economy report conducted in partnership with research firm Ipsos. The finding highlights a stark contrast with Nigeria, where over 85% of trips are settled through cashless channels, reflecting broader structural differences in how the gig economy operates across the two markets.

Market Structure and Scale

South Africa’s gig economy is valued at $5.03 billion with between 1.8 million and 2 million participants, where ride-hailing and e-commerce each account for 29% of activity, according to the Bolt-Ipsos report. In Nigeria, the market is larger at $5.17 billion supporting about 3 million workers, with ride-hailing representing 24% of gig activity and e-commerce leading at 38%.

Payment System Context

The prevalence of cash in South African ride-hailing reflects broader payment patterns in the country. According to the South African Reserve Bank’s Payments Study Report, cash still accounts for 56% of all consumer transactions by volume. While digital payments are expanding through cards, mobile wallets, and instant payment systems such as PayShap, cash remains deeply entrenched, particularly in informal and low-income segments. However, according to the 2025 State of Consumer Payments in South Africa report by fintech firm Stitch, more than 90% of respondents used payment methods beyond traditional cash and cards in the past year. Despite this broader shift, digital payments have not fully extended into ride-hailing.

Platform Responses and Fintech Partnerships

In Nigeria, platforms revised fare structures following the removal of the fuel subsidy in May 2023 and gave drivers faster access to their earnings, according to the Nigerian version of the Bolt-Ipsos report. These changes have been part of a broader shift toward cashless ride-hailing in the country. In Nigeria, ride-hailing platforms are collaborating with fintechs to offer micro-loans and vehicle financing solutions, expanding drivers’ access to formal banking and digital credit products. Bolt partnered with Advancly to provide in-app micro-loans.

In South Africa, although the South African Reserve Bank published a digital payments roadmap in 2024, ride-hailing remains heavily cash-dependent. However, the report notes that fintech collaborations with local banks are beginning to expand access to instant transfers, micro-loans, and insurance.

Driver Earnings and Income Patterns

The Bolt-Ipsos report surveyed 250 respondents in South Africa across ride-hailing, e-commerce, freelancing, remote work, and micro-task platforms. The survey found that 70% use ride-hailing to supplement other earnings, while 30% depend on it as their primary source of income. More than half earn 50% or less of their total income from the platform.

Although most use it as a supplementary income source, ride-hailing is contributing to improved living standards. Over 90% reported an improvement in their standard of living since joining the platform. Earnings are commonly directed toward essentials, including food, rent, transport, and education, while 32% of respondents cited financial independence as the most valued benefit.

“In South Africa’s current economic climate, ride-hailing is no longer just about mobility. It’s about opportunity,” said Simo Kalajdzic, Senior Operations Manager at Bolt. “Many drivers are using platforms like Bolt to build income streams, support their households, and take control of their financial futures. What we are seeing is the rise of everyday entrepreneurship, where individuals are creating flexible, self-directed livelihoods on their own terms.”

Workforce Demographics

The sector remains heavily male-dominated in both markets. In South Africa, 92% of ride-hailing participants are men and 8% are women, according to the Bolt-Ipsos report. In Nigeria, men account for 96% and women 4%. In Nigeria, a majority of drivers have been active on the platform for more than a year, indicating sustained participation.

Regulatory Framework

On the regulatory front, South Africa’s National Land Transport Amendment Act of 2023 formally recognised ride-hailing operators as part of the public transport system for the first time. The act introduced licensing requirements, safety features such as panic buttons, and standardised fares, representing a step toward greater worker protection.

Industry Innovation

Beyond regulation, platforms are also exploring new ways to reduce operating costs for drivers. In 2025, Uber launched its first fleet of electric vehicles in South Africa.