How new Legislation in South Africa favours Uber, Bolt drivers

South Africa has recently enacted new legislation that will significantly impact e-hailing drivers using popular apps like Uber and Bolt.

President Cyril Ramaphosa signed the amended National Land Transport Act (NLTA) into law, enabling e-hailing drivers to apply for operating licenses similar to other forms of public transport services in the country.

“This Bill amends the National Land Transport Act of 2009 to bring it up to date with developments since the implementation and simplifies various provisions or solves problems that have arisen since the implementation; and makes provisions for non-motorized and accessible transport,” said Sindisiwe Chikunga, Minister of Transport.

The changes represent a major victory for Uber and Bolt in South Africa, resolving a longstanding issue that has persisted for more than 13 years. Under the new law, e-hailing apps will no longer be required to use charter permits and meter taxi operating licenses.

More so, former Transport Minister Fikile Mbalula, who first introduced the amendments in March 2020, highlighted that the revised legislation defines a new category of operating license and introduces new obligations for e-hailing services to prevent illegal operators on their platforms, with penalties of up to R100,000 for non-compliance.

Furthermore, provincial regulators are now empowered to withdraw or suspend licenses if operators breach the NLTA or the Roads Act.

One of the key benefits of these changes is the potential reduction in tensions between metered taxi and ride-hailing drivers, a long-standing issue that has occasionally erupted into violence. Taxi owners have often accused Uber and Bolt drivers of taking their business.

In Soweto, these tensions have led to violent clashes, with instances of e-hailing drivers’ cars being torched. To address these challenges, the police and provincial government had to intervene to define operating territories for both parties.

The South African E-hailing Partners Council has criticized the lack of regulation in the industry, emphasizing the urgent need for the NLTA amendments to be implemented.

“The Transport Amendment Bill should have been signed into law by now to address the e-hailing legitimacy question,” the council stated.

A provisional report by the Competition Commission in February 2020 revealed that 79% of ride-hailing operators in South Africa were operating without valid licenses, highlighting the necessity of the amended NLTA for better regulation of the sector and increased legitimacy for drivers.

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