Uber and Bolt, as well as other e-hailing operators in South Africa, will soon see drastic changes in how they operate in the country.
This is due to the upcoming implementation of a new set of laws by the Department of Transport.
Donald Selamolela, Chairperson of the Portfolio Committee on Transport, recently shared the progress made in implementing the new laws.
He noted that the new legislation is in the process of being translated into a second official language before it is gazetted for implementation.
Selamolela also said that the gazetting is slated for October.
These changes result from the National Land Transport Amendment (NLTA) Act, which he said has been in the works for over ten years.
While the NLTA was assented to by President Cyril Ramaphosa in 2024, it has not yet been commenced or operationalised.
This legislation will allow e-hailing drivers to receive official e-hailing operating licenses rather than the current system, where they must use charter permits and meter taxi operating licenses.
Along with this, vehicles will be required to carry or be branded with a sign denoting that they are an e-hailing vehicle, while their licenses will indicate which geographic area, they are approved to operate in.
Beyond the vehicles, e-hailing drivers will be vetted and subject to criminal record checks under the new regulations.
Security is also a focus of the new legislation, requiring vehicles to be outfitted with features such as a panic button and drivers needing to keep their profile pictures up to date.
Any instance where a driver or platform fails to meet these requirements could result in a two-year prison sentence or a fine of up to R100,000.
Regulators will also be empowered to withdraw or suspend licenses as they see fit if a driver is found to be in breach of the NLTA.
Rising violence
These upcoming laws are urgently needed, according to Selamolela, due to the marked uptick in violence between e-hailing operators and the taxi industry.
This has seen a marked rise in violence against e-hailing drivers in Soweto and KwaZulu-Natal, with the government hoping that the new laws will help ease tensions.
The most recent and severe instance of violence was the incident at the Maponya Mall, which saw an e-hailing driver killed and others injured.
Though the taxi organisations have denied any links to criminal activity, there have long been concerns that they are trying to monopolise transport in the areas where e-hailing services are present.
This monopolisation is driven by the taxi industry’s reputation for extreme violence towards competitors, to the point that some have accused them of terrorism.
“The desire to resolve this conflict has been one of the primary motivators behind pushing the NLTA Act, with the hope that the legislation could reduce tensions between the two parties,” said Selamolela.
One of the triggers for the violence is the concerns the Soweto Taxi Association raised over individuals posing as e-hailing drivers to make a commission.
This is frequently done at uncompetitive rates, and the concern was echoed by the South African National Taxi Council, which also stated that NLTA is essential for resolving this issue.
That said, Selamolela did note that while the new legislation will help reduce violence, it won’t stop the natural evolution of the transport sector.