Major South African province says no to new Uber and Bolt drivers

The Western Cape province has reached its annual quota for operating licences for metered taxis and e-hailing services after receiving over 14,000 applications.

As such, it won’t support any further operating licence applications, according to an EWN report.

Western Cape Mobility Department representative Muneera Allie said the province agreed to support approximately 3,300 new operating licence applications this year, handled on a first-come, first-serve basis.

Of the over 14,000 applications received, the entity approved the full allowed quota of 3,354 new operating licences.

“As a result of the quota being reached, the City of Cape Town has indicated that no further operating licence applications will be supported,” said Allie.

An operating licence is required under the National Land Traffic Act for anyone who wishes to transport people for financial gain, such as taxis and e-hailing drivers.

Operators caught transporting passengers without necessary licensing stand to be fined and risk having their vehicles impounded.

“The City of Cape Town has confirmed that it will periodically re-assess the demand for new metered taxi and e-hailing licences, and our infrastructure’s capability to accommodate additional operators,” said Allie.

“This approach ensures that any future issuance aligns with the sustainable growth and efficient functioning of our public transport system.”

She noted that applications may still be accepted despite the quota being reached, but that the licences may not be issued within the normal timeframe.

“While applications may be accepted, the Provincial Regulatory Entity has ensured it informs applicants that operating licences may only be issued once approval for additional applications is received,” she said.

Operating licence ordeal

The Western Cape E-hailing Association has decried the provincial government’s statements, noting that despite following due processes, many e-hailing drivers can’t work because they have yet to receive their permits, and those who do risk getting their vehicles taken.

“What is happening is that the city is generating a lot of revenue from this. Permits are not being released,” said general secretary Omar Parker.

“They say they’ve reached their ceiling, they’re in excess, and they can’t release any more, but yet applications are still being taken in. On the other hand, the impoundments are still going on.”

The association seeks a more progressive approach to handling these situations that do not include immediate punishments such as impoundments.

“We have argued for a progressive approach to be adopted when it comes to impoundment, in other words if you are found without an operating license the law should not immediately punish you and take your car, there should be a progressive kind of approach,” he said.

The issue of operating licences in the Western Cape is similar to recent events in Gauteng.

Towards the tail end of 2024, the Tshwane Metro Police Department impounded dozens of e-hailing vehicles after drivers were found to be working without operating licences.

However, the reason many of these individuals didn’t have the correct documentation was that the Gauteng Department of Roads and Transport sat with a two-year backlog of applications.

At the time it had around 21,000 applications to work through, but had only issued approximately 9,000 licences.

The E-hailing Partners Council emphasised that the imbalance between applications and actual issuances showed that e-hailing operators are keen to comply with the law, but are struggling to do so due to inefficiences within government.

The situation in Gauteng eventually reached a point where one e-hailing service, Wanatu, dragged the authorities to court.

It described the actions of Tshwane metro police as unlawful and accused the police of intimidating its drivers.

After a week of legal proceedings, the North Gauteng High Court granted Wanatu and seven co-applicants an urgent interdict prohibiting the Tshwane Metro Police Department from impounding their vehicles until the process of obtaining permits is resumed.

Wanatu subsequently pursued legal action against the Gauteng Department of Roads and Transport, compelling it to process the outstanding permit applications.