Changes coming to Uber and Bolt in South Africa

The recent protest in Soweto, Gauteng, has put pressure on the government to speed up the process of regulating e-hailing services in South Africa.

The protest stemmed from the death of a 27-year-old Uber driver outside Maponya Mall, allegedly due to a dispute between e-hailing and taxi drivers.

Transport Minister Barbara Creecy said the implementation of the National Land Transport Amendment (NLTA) Act will regulate how e-hailing services such as Bolt and Uber will operate in the country.

ALSO READ: Santaco wants South Africans to pray for the taxi industry – Here’s why

Rivalry between Uber and taxis

The rivalry between Uber, Bolt and taxi drivers, especially in big cities such as Johannesburg, has been widely reported. There are areas in which these e-hailing drivers are unofficially restricted from operating in the city, due to the heavy presence of taxis.

Creecy told Sunday Times that the NLTA Act will ease rivalry between the e-hailing services and taxis. However, she emphasised that traditional taxi operators must be prepared for change.

The conflict between taxis and e-hailing services saw an attack that took the life of Mthokozisi Mvelase, and left another e-hailing driver and passenger injured. The community of Soweto brought Maponya Mall to a standstill, citing that the taxi rank operating inside the mall must be closed.

Changes coming to Uber, Bolt

The Act was approved by Creecy in March, and it is currently being translated into a second official language, which is expected to be gazetted for implementation in October.

Once the Act is implemented, the freedom of e-hailing drivers operating anywhere in the country will be limited. 

The Act will require each car operating in the e-hailing sector to be branded or carry a sign indicating it is an e-hailing taxi. Additionally, each car must have an operating licence that stipulates an area in which it operates.   

Creecy said this would help to ensure there was no oversupply of public transport services for a given population of commuters.

ALSO READ: SA e-hailing drivers struggle below minimum wage amid rising costs

Panic buttons and criminal checks

We live in a time when women live in fear for their lives due to incidents such as kidnapping and human trafficking. There have been a number of reported incidents, such as assaults involving e-hailing drivers.

To curb these crimes, the Act will require e-hailing drivers to be vetted and subjected to criminal record checks. This will result in a professional driving permit being required for each driver.

E-hailing cars will have panic buttons, and drivers must ensure their profile on the app includes an up-to-date photo for ease of identification by clients.

Santaco

The South African National Taxi Council (Santaco) previously expressed concerns about the implementation timeline of the Act.

“Santaco is deeply concerned about the continued illegality and lack of regulation in the e-hailing services sector. This situation stems from the delay in finalising and implementing the amended NLTA regulations, more than a year after the Act was amended in May 2024.”

The council said the lack of regulation over the e-hailing sector has created an environment where many drivers are operating without government-authorised permits.

“The current structure of e-hailing platforms does not enforce the requirement for these permits, leading to a flood of unregulated operators within the public transport space.”

Crimes linked to e-hailing

Santaco highlighted that the lack of regulation has caused congestion in the sector and also posed serious threats to commuters.

“There has been a disturbing rise in reports of hijackings, abductions, sexual harassment, and other violent crimes, all linked to the unchecked operation of e-hailing services under the current legal loopholes.”

NOW READ: Forget Uber and Bolt, we may soon have a Gauteng e-hailing service