South Africa’s public transport sector is among the country’s most complex industries to build a business in, shaped by legacy structures, informal operations and an established set of interests that new entrants have to work with rather than around. The technology businesses that have made progress here succeeded by treating those complexities as the problem to solve rather than as obstacles to bypass.
Minibus taxis alone move millions of commuters daily through a largely informal system, which represents both the scale of the opportunity and the reason the sector resists conventional technology approaches.
Data that does not exist has to be created first
Informally operated transport networks frequently have no route, schedule or stop data in any usable form, which means a business building services on top of that network has to collect the underlying data itself before it can build anything, a considerable undertaking that also becomes a genuine competitive asset once done.
Working with incumbents beats attempting to displace them
Established operators and associations control access to the sector, and businesses that position themselves as improving how those operators work have made considerably more progress than those positioned as replacing them, which would require overcoming entrenched interests with far greater local standing.
Digital exclusion among users shapes what can actually be built
A meaningful share of public transport users have limited data access or use basic handsets, which constrains solutions that assume smartphone ubiquity and makes low-data, SMS-capable or offline-tolerant approaches more practical than feature-rich applications.
Hard industries offer durable advantages to those who solve them
The same complexity that makes a sector difficult to enter protects a business that manages it, since the accumulated data, relationships and operational understanding are considerably harder for a later entrant to replicate than they would be in a simpler market.
Frequently asked questions
Why is public transport such a difficult sector for technology businesses?
Because it combines legacy structures, largely informal operations and established interests that control access, none of which respond to conventional technology approaches designed for formalised markets.
What is the first practical obstacle in building for informal transport networks?
The absence of usable route, schedule and stop data, which a business generally has to collect itself before building anything, a substantial undertaking that becomes a competitive asset once complete.
Should a new entrant aim to replace established transport operators?
Generally not. Businesses positioned as improving how existing operators work have progressed considerably further than those positioned as replacements, which would require overcoming entrenched local interests.
How does digital exclusion affect what can be built?
Significantly. Limited data access and basic handsets among many users make low-data, SMS-capable or offline-tolerant solutions more practical than applications assuming smartphone ubiquity.
Is there an advantage to entering a particularly difficult industry?
Yes. The complexity that makes entry hard also protects a business that solves it, since accumulated data, relationships and operational knowledge are far harder for later entrants to replicate.
Further reading
Originally published in August 2017. Updated September 2026 and rewritten in house voice, drawing the original case study into general lessons about entering structurally difficult industries.
