South Africa’s Department of Transport has enacted the long-awaited National Land Transport Amendment Act, establishing a new, formal category for “e-hailing services” within the public transport framework. The move ends years of regulatory ambiguity for a sector that has often been viewed as operating in a legal grey area, bringing it under direct government oversight.
The new legislation requires all ride-hailing drivers to hold a valid operating licence, aligning them with other public transport operators. The law also introduces a set of quality and security standards that platforms must adhere to, aiming to enhance protection for both passengers and drivers.
The timing of the gazette is critical, coming shortly after a spike in violent attacks against ride-hailing drivers, particularly in Soweto and the province of KwaZulu-Natal. These incidents are widely believed to be linked to ongoing and often violent tensions between drivers for app-based services and operators of traditional minibus taxis.
On August 13, the conflict turned fatal when Siyanda Mvelase, a 27-year-old ride-hailing driver, was shot and his vehicle was set alight near a mall in Soweto. Another driver was targeted in the same incident but managed to escape. The new regulations are seen as a direct attempt to formalise the industry and mitigate such conflicts.
New Rules of the Road
Under the amended act, ride-hailing companies face strict new compliance measures. Key requirements include:
- Licensing and Penalties: App developers who allow drivers without a valid operating licence to use their platform face a fine of up to R100,000 (approximately €5,000) or a potential two-year jail sentence. All ride-hailing apps must now be officially registered with transport regulators.
- Vehicle Identification: The department stated that “each vehicle should be branded or carry a sign indicating it is an e-hailing vehicle” to improve identification and safety. Commuters are advised to verify that the vehicle and driver details match those in the app.
- Mandatory Safety Features: Vehicle owners are now responsible for installing a panic button in their cars. This feature is designed to “assist with crime detection and enable a rapid response by law enforcement or tracking companies,” offering a critical safety line for passengers.
The Path to Compliance
To obtain an operating licence, drivers must apply through their Provincial Regulatory Entity, which will be responsible for ensuring all requirements are met. While a standard application fee will apply, the Department of Transport has clarified that “other operational costs are outside of the Department of Transport’s purview.”
Furthermore, the act will compel ride-hailing companies to register as local entities and comply with South Africa’s company laws, including regulations under the Department of Trade, Industry and Competition, and the South African Revenue Service (SARS).
To facilitate the transition, the department announced it will begin holding workshops this week to inform operators and officials across the country about the new legal framework.