SOUTH AFRICA – The South African president, Cyril Rumaphosa, has amended the National Land Transport Action Law to enable Bolt, Uber, and other ride-hailing platforms to apply for operating licenses like other public transport service providers in the country.
Previously, these companies operated in a regulatory grey area, relying on charter permits and metre taxi operating licenses. Now, the road is clear: ride-hailing operators in the country must apply for licences to operate in South Africa.
The president signed three bills into law, including the National Land Transport Action Law, which was initially brought to his desk in 2020 but returned to the National Assembly for reconsideration.
In 2022, ride-hailing drivers across South Africa went on many strikes as most of their vehicles were impounded because they lacked the necessary permits. The new bill will address these concerns by enabling access to needed documentation.
Transport Minister Sindisiwe Chukunga pointed out that the bill updates the National Land Transport Act of 2009 to reflect recent developments, simplify provisions, and address issues that may arise because of its implementation.
It also includes provisions for non-motorized and accessible transport, reflecting a commitment to a modern, inclusive, and efficient transport system.
Former transport minister Mbalula noted in a report that the amendments create a new category of operating licenses and require technology providers to prevent illegal operators from using their platforms, with an R100,000 (US$5,428) penalty fee for noncompliance.
The bill strengthens industry rules, allows for license revocation and suspension for violations, and addresses public concerns. These changes aim to reduce conflict between metered taxis and ride-hailing drivers.
The signed and amended Act has yet to be made public, but the bill to amend it is. It remains to be seen when these amendments will be enforced on ride-hailing operators.
The inability to secure operating licenses has been a significant issue for e-hailing drivers, leading to tensions with metered taxi drivers.
These conflicts have sometimes resulted in violence, with incidents of e-hailing vehicles being torched in Soweto. The new regulations are expected to mitigate such conflicts by clarifying the legal framework and reducing the presence of rogue operators.
The amendments also empower provincial regulatory entities to withdraw or suspend licenses if operators contravene the NLTA or the Roads Act.
Additionally, the act includes provisions for handling public complaints, ensuring passenger treatment standards, and implementing vehicle colour coding. These measures are intended to improve the overall safety and quality of e-hailing services.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
