New laws set to regulate e-hailing industry in SA

New e-hailing regulations require cars to be roadworthy and branded and permits will limit their operations to specific jurisdiction.

Zuko Komisa

South Africa’s Department of Transport is poised to introduce new laws that will significantly change how e-hailing services like Uber and Bolt operate.

The new legislation, part of the National Land Transport Amendment (NLTA) Act, is expected to be gazetted for implementation as early as October.

Key Changes and Penalties

According to Donald Selamolela, chairperson of the Portfolio Committee on Transport, the new regulations aim to bring tighter control to the industry. The legislation, which has been over a decade in the making, will introduce new security requirements for e-hailing drivers and their vehicles. Drivers will be required to have a panic button and keep their profile photos updated for accurate client identification.

Failure to comply with these rules could lead to severe penalties, including a potential two-year prison sentence or a fine of up to R100,000. Furthermore, regulators will have the authority to suspend or revoke an operator’s license for non-compliance.

Tackling Industry Tensions

The new Act is a direct response to escalating violence between e-hailing drivers and the traditional taxi industry. Recent incidents, including a fatal shooting at a Soweto mall, have highlighted the urgent need for a regulatory framework.

Taxi associations, while denying involvement in the violence, have expressed concerns about unregulated individuals posing as e-hailing drivers, which they say undermines the industry. The South African National Taxi Council (Santaco) has voiced its support for the NLTA, seeing it as crucial for resolving the ongoing conflict. The government hopes the new laws will help ease tensions and bring stability to the country’s transport sector.