Why South Africa Needs More Time To Get E-Hailing Regulation Right

Why South Africa Needs More Time To Get E-Hailing Regulation Right

South Africa’s e-hailing industry has been waiting years for clearer rules. Now that they are finally here, many drivers and platforms are warning that the clock is ticking too fast.

The national transport department has set an end-March deadline for compliance with new e-hailing regulations. On paper, the rules are meant to bring order, improve safety and level the playing field. In practice, rushed implementation risks doing the opposite.

A Sector That Grew Faster Than The Law

E-hailing expanded rapidly across South African cities long before regulation caught up. As services like Uber and Bolt became part of everyday life, the industry was pulled into long-standing taxi route conflicts, criminal activity and growing safety concerns.

At the same time, drivers found themselves working in a grey zone. They are not salaried employees, but individual operators navigating rising fuel prices, vehicle costs and unstable incomes. Regulation was always necessary, but timing matters.

What The New Rules Actually Require

Under amendments to the National Land Transport Amendment Act, e-hailing drivers and platforms must now meet several new requirements. These include:

• E-hailing specific operating licences issued by provincial regulators

• Platform registration with the National Public Transport Regulator

• Vehicle branding

• Physical panic buttons linked to private security companies

• Heavy penalties for non-compliance, including fines of up to R100 000 or possible jail time for app developers

Bolt has estimated that compliance could cost drivers around R1 000, excluding lost income while applications are processed. For drivers already operating on thin margins, this is not a small amount.

Licensing Backlogs Are The Biggest Red Flag

One of the most worrying issues is the backlog in operating licences. Many drivers have been waiting more than a year for permits issued under the old metered taxi framework. There is no guarantee they will receive new e-hailing licences before the deadline.

Forcing drivers to reapply, repay fees and risk penalties while government systems remain clogged feels deeply unfair. On social media, drivers have been vocal about the anxiety this creates, with many saying they support regulation but fear losing their livelihoods because of paperwork delays they cannot control.

Uneven Provinces Mean Uneven Policing

Another complication is that provinces are responsible for implementation. Some are far more prepared than others. Concerns have also been raised about licence caps in places like the Western Cape and how those limits are calculated.

If one province enforces strictly while another lags behind, the result could be selective policing, confusion and conflict between drivers. In a sector already marked by tension, that is a dangerous mix.

Regulation Should Protect Jobs, Not Destroy Them

No one disputes the need for safer, fairer e-hailing. Passengers want accountability. Drivers want protection from crime and intimidation. Platforms want legal certainty.

But compliance deadlines should reflect reality on the ground. Arrests, vehicle impoundments or fines triggered by administrative delays will not improve safety. They will simply push drivers out of work and deepen unemployment.

The transport department has signalled that timelines can be adjusted if needed. Extending the deadline would not weaken regulation. It would strengthen it by giving provinces, platforms and drivers the chance to comply properly.

Sometimes, getting it right matters more than getting it done fast.

{Source:Tech Central}

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