by A taxi system study, conducted by Global South Research, focused on Lusaka’s taxi ecosystem based on surveys conducted with 320 taxi drivers and 418 passengers in the month of May 2025. The research sheds light on the critical role taxis have in the Zambian urban economy and daily life as they were conducted via street intercepts and computer-assisted interviews in different urban centers.
Lusaka taxis are used by close to 80 percent of its population which goes on to demonstrate that public taxis are not considered a luxury service but an obligatory service, and not only for leisure. Taxis are akin to the city’s circulatory system, facilitating commuters to go to work and complete various tasks. A delicate economic balance is evident alongside the high usage: affordable fares for passengers ensures sustainable income for drivers too.
Taxi work serves as the primary occupation for most drivers. A majority of 66% work full-time and accumulate between 60 to 80 hours every week. With an average income of ZMW5,500, taxi driving provides a reasonable livelihood. This figure is also on par with the national average salary. The equilibrium of the system’s sustainability is at risk, however. Raising fares may result in loss of passengers, while lowering fees compromises driver retention.
Data on price sensitivity shows the balancing act: if fares were raised by 10%, nearly 67% of users would stop travelling. But with a 10% reduction in fares, only 31% of users are encouraged to travel more. This imbalance suggests that passengers are largely sticklers for discounts, further complicating matters regarding pricing flexibility.
It is also worth noting that the study chronicles temporal market dynamics. Peak periods of demand coincide with peak fares, often around ZMW60 for common routes, like Manda Hill to the Inter-City terminal. During the midday slump, fares tend to fall significantly, providing an opportunity for budget-minded passengers while giving a much-deserved break for drivers, important considering their grueling, long weekly hours.
Above all, the research underscores that the taxi market symbolizes something deeper; it demonstrates a system of mutual appreciation between the labour and commute users. It flourishes in the absence of stringent control, illustrating how a responsive, demand-driven approach can meet urban employment and mobility needs.
What We Think: This study underscores the importance of urban transport as it often goes unnoticed and effortlessly nurtures economic productivity and social integration. The Lusaka taxi system illustrates resilience and interdependence between the providers and users of the service and between affordability and income. Zambian policymakers and digital entrepreneurs need to look at this grassroots market as they venture into digital policies and market reforms. Innovations in the future, like the introduction of ride-hailing services or fuel subsidies, must ensure that this delicate equilibrium is not disrupted even though it is very functional.
