South Africa Mandates Licenses for Ride-Hailing Services

South African President Cyril Ramaphosa has signed an amendment to the National Land Transport Action Law, clearing the way for ride-hailing services like Bolt and Uber to obtain operating licences, just like other public transport providers.

Previously, these ride-hailing companies operated in a legal grey area, using charter permits and metre taxi licences. Now, they must apply for official licences to operate in South Africa.

The President signed three bills into law, including the National Land Transport Action Law. This bill was initially introduced in 2020 but was sent back to the National Assembly for revisions. In 2022, ride-hailing drivers in South Africa protested because many of their vehicles were impounded for lacking proper permits. The new law addresses these issues by allowing drivers to obtain the necessary documentation.

According to a report from MyBroadband, former Transport Minister Fikile Mbalula submitted the amended act in March 2020. Current Transport Minister Sindisiwe Chikunga praised the development, stating that the proposed regulations would be sent to the state’s Law Advisor for certification.

Chikunga noted that the bill updates the National Land Transport Act of 2009 to incorporate recent developments, simplify regulations, and address potential issues. It also includes provisions for non-motorized and accessible transport, showing a commitment to a modern, inclusive, and efficient transport system.

Former Transport Minister Mbalula mentioned that the amendments create a new category of operating licences and require technology providers to prevent illegal operators from using their platforms, with a penalty of R100,000 ($5,428) for non-compliance.

The bill strengthens industry regulations, allowing for licence revocation and suspension for violations. It aims to reduce conflicts between metre taxis and ride-hailing drivers. While the amended Act is not yet public, the bill to amend it is. The enforcement date for these new rules on ride-hailing operators is still to be determined.