New legislation is coming that will better regulate the e-hailing industry following the substantial uptick of violence in Soweto against e-hailing drivers.
This is according to Transport Minister Barbara Creecy, who recently told the Sunday Times that the National Land Transport Amendment (NLTA) Act would introduce regulations for e-hailing services like Bolt and Uber, and could help ease tensions with the taxi industry.
While this announcement is likely a response to the incident earlier this month at the Maponya Mall in Soweto, which saw an e-hailing driver killed, the NLTA has been on the books for well over a decade and was assented to by President Cyril Ramaphosa in 2024.
Under this legislation, e-hailing drivers will no longer need to use charter permits and meter taxi operating licenses and instead receive an official e-hailing operating license.
Vehicles will also carry or be branded with a sign indicating they are e-hailing vehicles, and their licenses will indicate the geographic areas in which they are approved to operate.
Drivers will be vetted and subject to criminal record checks under the new regulations, and a professional driving permit will also be required.
Creecy noted that this will help ensure there isn’t an oversupply of transport services as well.
Along with these regulations, the legislation has new security requirements for e-hailing drivers and their vehicles.
This includes needing a panic button and drivers ensuring their profile photo is up to date for accurate client identification.
Should drivers fail to adhere to these new regulations, they could incur a two-year prison sentence or a financial penalty of up to R100,000.
Regulators are also empowered to withdraw or suspend licenses as needed when an operator is found to be violating the NLTA.
Creecy approved the NLTA in March, and the legislation is currently being translated into a second official language ahead of its being gazetted for implementation, which is currently slated for October.
Desire for change
The incident at Maponya Mall is merely the most recent in a long string of incidents of violence between taxi drivers and e-hailing platforms.
The desire to resolve this conflict has been one of the primary motivators behind pushing the NLTA Act, hoping the legislation could reduce tensions between the two parties.
One of the reasons for the conflict was the concerns of the Soweto Taxi Association, which took issue with individuals without credentials posing as e-hailing drivers to make a commission, frequently at uncompetitive rates.
The South African National Taxi Council (Santaco) echoed this sentiment and noted that the NLTA is essential in the current situation where unregulated operators have become commonplace.
Creecy has, however, noted that while the new Act will help reduce violence, it won’t prevent that natural evolution of the transport industry.
She said that taxi operators are still a part of the modern world and subject to its changes, meaning they can either change with the times or risk disappearing.
Creecy highlighted that research had found that in the Western Cape, minibus taxis were best suited for finishing the final leg of a commuter’s journey, while long stretches were better suited for rail.
She also said that her department is working with the Western Cape and Gauteng to improve interoperability between the different modes of transport, with Gauteng looking at an integrated ticketing system where one ticket can be used for bus, taxi, and train travel.
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