Big changes for Uber and Bolt in South Africa coming as soon as next month
The Department of Transport is getting ready to implement new laws in South Africa that will fundamentally change how e-hailing operators like Uber and Bolt operate in the country.
Addressing the media on the outcomes of an economic cluster briefing by the Portfolio Committee on Transport, chairperson Donald Selamolela outlined progress on the new laws.
According to Selamolela, the new legislation is currently being translated into a second official language before being gazetted for implementation “within two months,” with October set as a likely window.
The changes are coming through the National Land Transport Amendment (NLTA) Act, which the committee chair said has been in the works for over a decade.
It was assented to by President Cyril Ramaphosa in 2024, but has not yet commenced or been operationalised.
Under this legislation, e-hailing drivers will no longer need to use charter permits and meter taxi operating licenses and will instead receive an official e-hailing operating license.
Vehicles will also carry or be branded with a sign indicating they are e-hailing vehicles, and their licenses will indicate the geographic areas in which they are approved to operate.
Drivers will be vetted and subject to criminal record checks under the new regulations, and a professional driving permit will also be required.
Along with these regulations, the legislation has new security requirements for e-hailing drivers and their vehicles.
This includes needing a panic button and drivers ensuring their profile photo is up to date for accurate client identification.
Should drivers fail to adhere to these new regulations, they could incur a two-year prison sentence or a financial penalty of up to R100,000.
According to Selamolela, regulators are also empowered to withdraw or suspend licenses as needed when an operator is found to be violating the NLTA.
“The minister approved the NLTA in March this year, and the legislation is currently being translated into a second official language ahead of its being gazetted for implementation, which is currently slated for October,” he said.
Escalating violence
Selamolela said that the urgency to implement the new laws comes in the wake of escalating violence between e-hailing operators and the taxi industry.
The laws are being implemented to better regulate the e-hailing industry, following a substantial increase in violence against e-hailing drivers in Soweto and KwaZulu-Natal.
The government hopes that it will ease tensions between the services and the taxi industry.
The violence hit a peak in a recent incident at Maponya Mall, which was just the most recent in a long string of incidents of violence between taxi drivers and e-hailing platforms.
On 13 August, one e-hailing driver was shot dead, while two others were left injured outside the mall, while vehicles were also set alight by the perpetrators.
While the taxi organisations disavowed and denied any links to criminality, they have long been accused of trying to monopolise transport in the areas where e-hailing services operate.
Despite being the primary mode of transport for millions of South Africans, taxis are renowned for extreme violence towards competitors and have been accused 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,” Selamolela said.
One of the reasons for the conflict was the concerns of the Soweto Taxi Association, which took issue with individuals without credentials posing as e-hailing drivers to make a commission, frequently at uncompetitive rates.
The South African National Taxi Council (Santaco) echoed this sentiment and noted that the NLTA is essential in the current situation where unregulated operators have become commonplace.
However, Selamolela warned that, while the new Act will help reduce violence, it won’t prevent the natural evolution of the transport industry.
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