E-hailing industry welcomes new law

THE e-hailing industry has welcomed the signing of the National Land Transport Amendment (NLTA) Bill by President Cyril Ramaphosa as a “massive win” for the sector.

The signing of the bill into law brought long-awaited clarity and formal recognition to e-hailing services.

Business Development Specialist for Africa at indrive, Ashif Black, said the company was over the moon, adding that the law not only clarified how businesses should operate but also reinforced the commitment to safety and reliability for e-hailing 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 said.

He highlighted 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 users? 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 said.

The signing of the e-hailing National Land Transport Amendment Bill will see the introduction of compulsory operating licences for e-hailing drivers and will ensure that the service is brought in line with the evolving digital economy.

By law, drivers would be required to obtain national operating licences to work, replacing the previous cumbersome system of charter permits and meter taxi licences.

Those found breaching the law will face imprisonment of up to two years or a fine of up to R100 000.

It has taken 13 years for the National Land Transport Amendment Bill to become an act of Parliament. It was originally passed by Parliament in 2020, but after concerns were raised about its constitutionality, the president sent it back to the House for reworking.

Transport Minister Sindisiwe Chikunga welcomed the amendment of the National Land Transport Act, saying it paved the way for e-hailing service operators to apply for operating licences “like any other public transport operator”.

Chikunga said the department had been developing regulations in parallel to the process of finalisation of the NLTA bill by Parliament to address the president’s reservations.