National Land Transport Act Amendment good for platform riders

The competition between e-hailing and taxi operators in terms of territory and customers has brought about nationwide tensions, signalling the need to address and regulate ride-hailing services in South Africa. In 2023, violent clashes erupted at the Maponya Mall in Soweto, with e-hailing drivers facing significant damage and injuries by their taxi competitors. 

Fortunately, after a 13 year wait, President Cyril Ramaphosa recently signed the amended National Land Transport Act into law, along with two other bills. The amended Act removes the requirement for ride-hailing companies to acquire meter taxi operating licenses and charter permits, which were obstacles that affected their operations. This amendment paves the way for ride-hailing operators, including Uber and Bolt, to earn operating licenses, thereby aligning them with public transport providers. 

Initial Response

Transport Minister Sindisiwe Chikunga welcomed the amendment, and emphasised that it brings the required updates to cater to recent developments in the transportation sector as it simplifies provisions and accounts for issues that have occurred since the implementation of the Act in 2009. The Bill also includes provisions for non-motorised and accessible transport and strengthens regulations in case of violations and more. 

Bolt and Uber also welcomed the changes: Bolt’s acting head of regulatory and policy in Africa, Wyinmi Aghadiuno, stated that the amendment was a “significant development” to tackling challenges within the e-hailing industry. He also mentioned Bolt’s willingness to work closely with the authorities to ensure the continuation of safe and reliable transportation to South Africans. Uber also called the law “a step in the right direction”. 

Lingering Doubts

However, there has been lingering confusion on whether these new developments will reduce tensions within the industry, since there is the possibility that e-hailing drivers may continue to face alienation from their counterparts. E-hailing drivers have previously spoken out against the possible targeting of e-hailing services for noncompliance regulations. Western Cape e-hailing association member Siyabonga Hlabisa also said that there is an expectation that the rollout of operating licensed would be without any backlogs or issues, which drivers have experienced before. Regardless, drivers are ready to welcome the introduction of the licenses, as it allows them to officially become part of the transport sector.