The Western Cape Provincial Regulatory Entity (PRE) has announced an extra 1,100 operating licences for e-hailing drivers and metered taxi operators in Cape Town.
According to the Western Cape PRE, only 5,494 operating licenses are registered in the city, while applications for such licenses have surpassed 14,000 this year.
In March, the Western Cape Mobility Department representative, Muneera Allie, indicated that the province had only agreed to support around 3,300 of these applications for this year, handling the situation on a first-come, first-served basis.
“As a result of the quota being reached, the City of Cape Town has indicated that no further operating license applications will be supported,” said Allie.
This announced increase in available licenses will therefore come as a relief to e-hailing and metered taxi operators in Cape Town.
The Western Cape E-Hailing Association welcomed this announcement, with its general secretary, Omar Parker, saying it is a step in the right direction.
“We do welcome the announcement, and I think it was long overdue. However, we are cautiously optimistic about the situation. We will see how things play out,” he said.
However, he also indicated that they have raised concerns with the PRE and the city.
This includes concerns around the sudden increase in consultants charging vulnerable e-hailing operations heavy fees to assist them in the application process.
Those currently with expired licenses will need to apply between Thursday, 19 June 2025, and the end of the month, while new applications will open on 1 July 2025.
Licence problems
While the announcement is a step in the right direction, it’s unlikely to solve the broader licensing issues in Cape Town.
One such issue is that while e-hailing drivers follow due process, many can’t work due to not receiving their permits.
“What is happening is that the city is generating a lot of revenue from this. Permits are not being released,” said 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.”
An extra 1,100 licenses will help many drivers, but it still leaves thousands of applications being made and not being answered.
Additionally, those who do drive without a permit risk losing their vehicles due to impoundment.
The Association has been pressing for a more progressive approach to law enforcement, avoiding situations where drivers are immediately punished by losing their vehicles.
“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.
Another concern surrounding licenses is the National Land Transport Amendment Act and its regulations that have yet to be implemented.
Cape Town MMC for urban mobility, Rob Quintas, stated that the Western Cape government would wait until after the act and its regulations were promulgated before announcing anything further for licenses.
The National Land Transport Amendment Act was signed in June 2024 and includes amendments to make operating licences compulsory for e-hailing drivers in South Africa.
The amendments will also allow e-hailing drivers to apply for licences like any other public transport operator rather than being forced to use charter permits and meter taxi operating licences, as is currently the case.
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