Read the following article and answer the questions that follow: Uber in South Africa There was a time, in the early days of motorised transport, when cars were not allowed to drive faster than 6.4 km per hour and commercial motor vehicles were not allowed on public roads unless someone carrying a red flag walked in front of it. Therese were among a series of draconian laws enacted in Britain and parts of the USA from the mid-1860s, reportedly backed by railroad barons who were scared of the competition posed by the new founded road locomotives. Some 150 years later, a similar battle played itself out on the streets of South African cities. This time, the disruptor was the ride-hailing smartphone application, Uber, and the part of the rail barons was played by the traditional metered-taxi industry. Uber launched in South Africa in 2012 and has since redefined the traditional model for taxi operators. Uber (a software development organization) has experienced explosive growth around the world since it was founded in San Francisco in the USA in 2009. In February 2018, it was valued at US $ 72 billion. Despite consumer willingness to use the service, Uber has run into obstacles in a number of its markets, both in developed and developing countries. The South African metered taxi companies and taxi operators coordinated protest marches and called on the government to clamp down on Uber, which was accused of flouting the laws that regulate public transport. Uber drivers were also intimidated by other metered taxi drivers claiming that Uber was stealing their business and operating illegally.

Questions:1 3.2 Critically discuss the factors that Uber would have considered when deciding to enter the South African market. (12)