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Uber and Bolt Risk Shutting Down in South Africa Over Licence Chaos

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Government Deadline Looms as Major E-Hailing Platforms Fail to Register Under New Transport Laws

Johannesburg – South Africa’s beloved e-hailing platforms, including global giants Uber and Bolt, are facing an existential crisis. With just one month remaining before a government-imposed compliance deadline expires, neither major platform has completed the mandatory registration process required by new national legislationleaving them at serious risk of being declared illegal operators.

The clock is ticking on the National Land Transport Amendment Act, introduced to regulate the fast-growing e-hailing industry, improve safety for passengers and drivers, and address long-standing tensions between e-hailing services and the traditional taxi industry. The rules officially came into effect in September 2025, with a 180-day compliance period granted to allow drivers and platforms to adapt.

That grace period ends in just four weeksand the industry is nowhere near ready.

What the New Law Requires

The National Land Transport Amendment Act introduces sweeping changes to how e-hailing platforms operate in South Africa. The new regulations mandate that:

  • All e-hailing platforms (including Uber and Bolt) must register with authorities

  • Proper vehicle branding must be displayed on all e-hailing vehicles

  • Panic buttons must be installed in every vehicle for driver and passenger safety

  • Operating licenses must be secured for both drivers and the platforms themselves

  • Provincial registration is required, with platforms needing to appear in official databases maintained across all nine provinces

The regulations were designed with multiple objectives: ensuring passenger safety, creating accountability, levelling the playing field with metered taxis, and addressing ongoing conflicts between e-hailing operators and the traditional taxi industry.

The 180-Day Countdown

When the rules took effect in September 2025, the government announced a 180-day compliance period to allow drivers to apply for licenses and meet the new requirements. At the time, National Spokesperson Collen Msibi emphasised the Department’s commitment to a fair and regulated environment for all public transport operators.

But as the deadline approaches, the reality is stark. Media reports indicate that none of the major e-hailing platforms have completed the registration process.

Msibi’s warning from last year now carries urgent weight:

“Without a registered app, no operator will be able to convert to an e-hailing operating licence or apply for a new e-hailing operating licence. This means after 180 days, those who have not converted will automatically become illegal operators.”

He further explained the practical consequences: “Providers who are not registered with the NPTR will not appear in the databases maintained by the provincial regulators in the nine provinces. Consequently, this will impact e-hailing operators seeking to apply for an operating license at the provincial level using their digital platforms.”

What “Illegal Operator” Status Would Mean

If Uber, Bolt, and other platforms fail to register before the deadline, the consequences would be severe:

  • Platforms would be operating unlawfully, potentially facing fines, legal action, or shutdown orders

  • Drivers could not legally obtain operating licenses, as their platforms would not appear in provincial databases

  • Thousands of drivers could lose their livelihoods overnight

  • Millions of passengers would lose access to popular, affordable transport options

  • The traditional taxi industry would be left as the primary informal public transport alternative

The potential shutdown would ripple across South Africa’s economy, affecting everyone from daily commuters to tourists, restaurant owners to event organisers.

Why Hasn’t Registration Happened?

The reasons behind the failure to register remain complex and multifaceted:

Platform Challenges:

  • Navigating nine different provincial regulatory systems

  • Technical integration with government databases

  • Uncertainty around specific requirements and interpretations

  • Potential concerns about data sharing and privacy

Government Capacity:

  • Provincial regulators may lack resources to process applications efficiently

  • Unclear communication between national and provincial authorities

  • Potential backlogs as the deadline approaches

Industry Confusion:

  • Drivers uncertain about their individual responsibilities

  • Conflicting information about requirements

  • Fear of engaging with complex bureaucratic processes

The Broader Context: Safety and Tensions

The introduction of these regulations was not arbitrary. The e-hailing industry in South Africa has faced persistent challenges:

  • Safety concerns: Multiple high-profile incidents, including the recent murder of Bolt driver Isaac Satlat, have highlighted dangers faced by drivers and passengers

  • Taxi industry tensions: Violent conflicts between e-hailing operators and traditional taxi associations have erupted in various cities

  • Regulatory gaps: The industry grew rapidly without a dedicated legal framework, creating enforcement challenges

  • Passenger protection: Limited recourse for passengers in disputes or safety incidents

The government’s push for regulation aims to address these issues systematically, but the implementation has proven far more challenging than anticipated.

Voices from the Industry

Drivers, who find themselves caught between platform requirements and government regulations, have expressed anxiety about the future.

“I’ve been driving for Uber for five years. It’s how I feed my family,” said one Johannesburg-based driver who asked to remain anonymous. “Now I don’t know if I’ll have a job next month. The platforms aren’t telling us anything clear, and the government processes are confusing. I feel like I’m going to lose everything through no fault of my own.”

Industry analysts warn that a sudden shutdown would create chaos:

“E-hailing has become integral to South African urban transport,” said transport analyst Thabo Mokoena. “Removing these platforms overnight would leave millions stranded and thousands unemployed. It’s not a simple enforcement matterit’s a potential economic and social crisis.”

What Happens Next?

With just one month remaining, several scenarios could unfold:

Scenario 1: Last-Minute Registration
Platforms and government work urgently to complete registration before the deadline, possibly with simplified processes or temporary exemptions.

Scenario 2: Extension Granted
Government acknowledges implementation challenges and extends the compliance period to avoid mass disruption.

Scenario 3: Partial Enforcement
Authorities focus enforcement on the most serious violations while allowing continued operation during negotiations.

Scenario 4: Shutdown
Deadline passes without compliance, and authorities begin enforcement actions against non-registered platforms.

Government’s Position

Thus far, government officials have maintained a firm stance on the requirements, emphasising that the regulations exist to protect the public and create a fair transport environment.

The Department of Transport has been contacted for comment on the current registration status and whether any extension is being considered. This article will be updated with any response received.

The Human Cost of Regulatory Chaos

Behind the policy debates and legal technicalities are real people:

  • Drivers who have invested in vehicles and built livelihoods around e-hailing platforms

  • Passengers who rely on affordable, convenient transport for work, study, and daily life

  • Families dependent on income from the e-hailing economy

  • Communities where e-hailing has created economic opportunities

The murder of Isaac Satlat, whose accused killers abandoned bail this week, serves as a tragic reminder of why safety regulations matter. Yet the path to implementation must be navigated carefully to avoid unintended harm to the very people the regulations aim to protect.

Looking Ahead

The next 30 days will be critical for South Africa’s e-hailing industry. All eyes are on Uber, Bolt, government regulators, and provincial authorities as the deadline approaches.

For millions of South Africans who open their apps daily to request a ride, the familiar interface may soon display a very different messageif it works at all.

The question remains: Will common sense prevail with a workable solution, or will South Africa’s transport landscape face its biggest disruption in decades?

 

{Source: IOL}

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