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  • April 2021 (Revised January 2022)
  • Supplement
  • HBS Case Collection

SA Taxi: A Vehicle for Empowerment? (B)

By: Nien-he Hsieh, Dilyana Karadzhova Botha and F. Christopher Eaglin
  • Format:Print
  • | Language:English
  • | Pages:6
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Abstract

SA Taxi was a vertically integrated business that operated in South Africa’s distinctive taxi industry. Despite being plagued by violence, informal structures, unsafe road practices and lack of government support, the taxi industry had grown to become South Africa’s most common mode of public transport. SA Taxi was one of the largest companies entirely focused on serving the taxi industry. In addition to vehicle financing services, it offered insurance products, refurbishment services, and retail capabilities.
SA Taxi served a mainly black-owned industry whose main participants—taxi owners, drivers, and commuters—had been historically disadvantaged. SA Taxi CEO Terry Kier understood that his company was already creating substantial impact for these constituents through financial inclusion, job creation and skills development but he knew that SA Taxi needed to do more to enhance its sustainability as well as that of the industry. By 2018, following multiple engagements with industry representatives, Kier saw an ownership deal that benefited the industry as SA Taxi’s next strategic move.
Although there was an alignment among the company’s leadership on the need for and purpose of the deal, the transaction itself was far from clear. After consulting with internal and external stakeholders, Kier landed on three deal options. Kier and the company’s founders needed to agree on the best path forward.

Keywords

Corporate Accountability; Ownership; Ownership Stake; Business and Stakeholder Relations; Equality and Inequality; Race; Situation or Environment; Transportation Industry; South Africa; Africa

Citation

Hsieh, Nien-he, Dilyana Karadzhova Botha, and F. Christopher Eaglin. "SA Taxi: A Vehicle for Empowerment? (B)." Harvard Business School Supplement 321-141, April 2021. (Revised January 2022.)
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About The Author

Nien-he Hsieh

General Management
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Related Work

    • April 2021 (Revised January 2022)
    • Faculty Research

    SA Taxi: A Vehicle for Empowerment? (B)

    By: Nien-he Hsieh, Dilyana Karadzhova Botha and F. Christopher Eaglin
Related Work
  • SA Taxi: A Vehicle for Empowerment? (B) By: Nien-he Hsieh, Dilyana Karadzhova Botha and F. Christopher Eaglin
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