How about this: riders pay a reasonable monthly membership fee based on distance; 0-15km daily = $X/month, 15-25km daily = $Y/month, etc. Drivers pay nothing. P

How about this: riders pay a reasonable monthly membership fee based on distance; 0-15km daily = $X/month, 15-25km daily = $Y/month, etc. Drivers pay nothing. Payment to the driver works like with Flattr... every month, each rider took m rides totaling n km. Take your cut of the rider's monthly fee and the remainder is divided proportionally across each ride based on some allocation of base amount per ride plus amount per km, and the driver gets paid. This may avoid disintermediation as the price should be more than fair for the rider that they wouldn't want to have to deal with forking over cash (from what I've read about South Africa, I suspect there's a risk of getting robbed which this prevents). And what happens if a rider is sick or has a day off and they need to pair up with another driver? Additionally, look at what AirBNB has done: offer supplemental insurance to cover unfortunate circumstances. Investigate what it would cost to provide some additional insurance to riders and/or drivers such that if they try to go outside the system, they're not covered. I'm not sure what kind of insurance coverage is mandatory for drivers, but if there's something many drivers routinely avoid (eg: they have collision only, but no liability) there's an opportunity to step in and provide something extra. And/or what some auto clubs have: drivers are covered for so many flat tire repairs, jump starts for dead batteries, etc. Leaving the system cuts both drivers and riders off from this coverage. Also, look for ways to partner and offer additional benefits. There's probably some underdog gas/petrol chain which would love to be the exclusive provider and could kick back a small percentage of purchases. Ideally it's kicked back to your company via a reward card and is part of your payment to drivers. Rate drivers on vehicle cleanliness and reliability and now there's an incentive to have a clean, well-maintained vehicle... and you can partner with a chain of mechanics and auto detailers and give your members a 25% discount or whatever you can negotiate. As you're dealing with many low income people, not sure what level of tech you're facing, but you could also provide mobile app notifications or SMS a few minutes before the driver arrives. Finally, if the local government wants to make ride sharing a priority why not partner with them to subsidize the program on a per-rider basis? This may let you offer a cash incentive to riders for signup and/or get 100% of your fees through this subsidization, allowing you to pass through all of the monthly fees to the driver. With whatever other benefits you offer, there's really NO reason for them to leave the program.