South African Government to Control Ride-Hailing Prices

South Africa’s ride-hailing landscape is set for significant changes following the passage of the National Transport Act amendment bill. This new law transfers the authority to set ride-hailing prices from companies like Bolt and Uber to the Transport Minister, Sindisiwe Chikunga. 

President Cyril Ramaphosa signed this amendment into law after a long wait of 13 years to update the regulations to include e-hailing services.

Melithemba Mnguni, Secretary of the E-Hailing Partners Council, expressed excitement about these long-awaited changes in a recent online radio interview. He highlighted that South African ride-hailing operators have struggled with pricing issues that often left them feeling underpaid and oversaturated the market, reducing earnings. 

To address these issues, the council pushed for changes focusing on pricing, safety, and better communication between operators and platforms.

Despite these positive sentiments, not everyone is convinced. Kenny Moretsele, a Bolt operator and Chairperson of the Ekurhuleni E-hailing Association, believes that whether it’s the companies or the government setting the prices, the core issues remain unresolved, especially with unclear aspects of the price regulation in the bill. Moretsele thinks the problem of price dumping in the industry will persist.

In contrast, Mnguni argues that this shift is beneficial. He points out that the e-hailing platforms have historically set prices without bearing any operational costs, which he finds inappropriate. With the transport minister now in charge of pricing, operators hope for a fairer, more inclusive system.

Initially, ride-hailing platforms in South Africa resisted this amendment and even tried to have it scrapped. However, the Department of Transport welcomed its signing into law and outlined the next steps. The Amendment Bill will be submitted to the Office of the State Law Advisor for certification and then to the Minister for approval.

Under the new regulations, ride-hailing services will no longer need to apply for and use charter permits and metre taxi operating licences. Additionally, the transport minister will have the power to implement new regulations and safety measures, simplifying the process for obtaining operating licences.