President Cyril Ramaphosa recently signed two significant Bills into law, impacting South Africa's transport sector, particularly e-hailing services.
The first, the National Land Transport Amendment Act, mandates operating licences for e-hailing drivers, streamlining the system by replacing charter permits and meter-taxi licences. Violations could result in up to two years' imprisonment or fines up to R100,000. This Act, 13 years in the making, was revised to address constitutional concerns and now empowers provinces and municipalities to manage public transport contracts and expands the transport minister's regulatory authority.
The second, the Economic Regulation of Transport Act, establishes a transport regulator to oversee pricing across various transport modes, including shipping, aviation, rail, and road. This aims to enhance economic growth and public welfare by ensuring an effective and productive transport sector.
Transport Minister Sindisiwe Chikunga lauded the amendments, highlighting that e-hailing operators can now apply for operating licences like other public transport operators, moving away from the interim use of charter permits and meter taxi licences.
Ashif Black, Business Development Specialist for Africa at inDrive, a key player in the space, hails the move as a "massive win" for the industry, bringing long-awaited clarity and formal recognition to e-hailing services.
"We are certainly excited," Black confirms.
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.
The legislation goes beyond just e-hailing. The Economic Regulation of Transport Bill aims to establish a Transport Economic Regulator tasked with regulating fares, investigating complaints, and overseeing compliance across the entire transport sector. This focus on economic growth and a well-functioning transport system is another key aspect of the new bills.
Black highlights inDrive's dedication to both rider and driver well-being. "We're passionate about empowering drivers with flexible earning opportunities while ensuring passengers have access to safe, reliable, and high-quality transportation."
However, questions remain. How will the new regulations affect pricing for riders? Will drivers see a positive impact on their earnings? The industry awaits 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,” Black concludes.
