Transaction Capital's SA Taxi employs telematics to drive commuter safety
SA Taxi, which completed an ownership transaction with the South African National Taxi Council (Santaco) in February, said yesterday that the use of technology would have a positive social impact and increase commuter safety.
Chief executive David Hurwitz said that its partnership with Santaco had led to a broadening of their total addressable market and assisted in the creation of new products in new and existing segments of the minibus taxi industry.
“This will not only benefit SA Taxi, but will also be highly beneficial to the minibus taxi industry as a whole. Ultimately, SA Taxi intends to leverage its telematics and rewards programmes data to connect to South Africa’s 250000 minibus taxi operators selling existing finance and insurance, and new products suited to the needs of minibus taxi operators,” Hurwitz said.
SA Taxi, a vertically integrated taxi platform which provided developmental finance, insurance and other services to empower minibus taxi owners in the country, has already partnered with Bridgestone this year through its SA Taxi Rewards to launch a tyre programme to add to the successful fuel rewards programme.
Santaco has a 25percent stake in SA Taxi. In the year to end September, SA Taxi reported a strong growth in earnings, up by 38percent to R519million.
Its loans and advances portfolio grew by 16percent to R10.8billion and its short-term insurance business, SA Taxi Protect, grew gross written premiums by 20percent to R823m, driven by new products and new customer acquisition. SA Taxi’s performance contributed in the group by reporting an overall 18percent growth in headline earnings to R803m.
The group’s core headline earnings per share also increased by 18percent to 131.3c a share.
The group said its balance sheet was ungeared and liquid and its capital strategy remains conservative in the current economic conditions, with undeployed capital of more than R950m. The group declared a total dividend of 61c a share, up by 22percent compared to last year’s 50c.
Hurwitz said Transaction Capital had maintained its record of delivering strong financial results in the past seven- and a-half years since listing on the JSE in 2012.
“SA Taxi and Transaction Capital Risk Services (TCRS) continue to demonstrate resilience as highly defensive businesses able to deliver good commercial returns in poor economic conditions,” he said.
TCRS grew headline earnings by 15percent to R313m.
Looking ahead Hurwitz said the group would continue driving sustainable future earnings growth at similar levels and invest in innovative new opportunities in adjacent segments of their markets, enter new geographic markets, but always within their core competencies and develop new products and distribution strategies to broaden their existing total addressable market.
Transaction Capital’s JSE counter closed 1.88percent higher at R21.73 yesterday.