Big win for Uber, Bolt and other e-hailers in South Africa

South Africa’s e-hailing industry has been boosted by President Cyril Ramaphosa’s signing of two new laws in South Africa.

The National Land Transport Amendment Bill was initially passed by parliament and sent to the President for assent in 2020.

Amid constitutional concerns, Ramaphosa sent the Bill back to the National Assembly for reconsideration.

The revised Bill amends the National Land Transport Act, 2009, by inserting and amending specific definitions and providing for non-motorised and accessible transport.

“The amendments bring the Principal Act up to date with new developments and provide for certain powers of provinces and municipalities to conclude contracts for public transport services,” said the Presidency.

“It further expands the powers of the Minister to make regulations and introduce safety measures.”

The National Land Transport Amendment Act can be found below (mobile users click here):

Ashif Black, Business Development Specialist for Africa at inDrive, said that the move is a massive win for the industry, as it brings long-awaited clarity and formal recognition to e-hailing services.

inDrive (F.K.A. inDriver) has been operating in South Africa since 2019.

“This new law not only clarifies how our business operates but also reinforces our commitment to safety and reliability for our users. We are committed to working hand-in-hand with authorities to ensure a smooth transition,” said Black.

The Boll will also require e-hailing drivers to apply for national operating licences for their services like minibus taxis. In the past, drivers needed to apply for charter permits and meter-taxi operating licences.

As reported by News24, Bolt’s acting head of regulatory and policy in Africa, Weyinmi Aghadiuno, said the law was a major development to deal with the problems facing the e-hailing industry. 

Uber also said that the law’s signing was a step in the right direction, especially in recognising that e-hailing is different from other forms of transport.

Furthermore, the legislation signed by the President goes beyond e-hailing.

The President also signed the Economic Regulation of Transport Bill, which will create a Transport Economic Regulator that will regulate prices in the transport sector, investigate complaints, and monitor and enforce compliance.

“The Bill further seeks to establish a single regulatory body to focus on the economic regulation of the transport industry,” said the Presidency.

The Economic Regulation of Transport Bill can be found below (mobile users can click here):

Question marks

That said, questions remain, particularly over how the new regulations will affect pricing for riders and whether they will have a positive impact on drivers’ earnings.

The industry is awaiting detailed guidelines to understand the full scope of the changes.

“We are ready to collaborate with national, provincial, and local authorities to facilitate compliance and support the rollout,” said Black.

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