South Africa legalises ride-hailing services after 13-year wait

The amendment comes after a 13-year struggle to update the existing act, which did not account for the rise of ride-hailing services. Previously, these companies operated in a legal grey area, relying on charter permits and metre taxi operating licences that needed to be better  fit for their business model.

The changes mean that regulations will no longer require ride-hailing services to use charter permits and metre taxi operating licences in South Africa.

Streamlining the ride-hailing landscape

The amended act eliminates the need for ride-hailing services to use outdated permits and licences. It also grants the Minister of Transport expanded powers to implement regulations and safety measures specific to ride-hailing operations. Additionally, the process of obtaining operating licences will be streamlined.

This move is expected to reduce conflict between metered taxi drivers and ride-hailing drivers, who have previously clashed due to a lack of clear regulations governing both sectors.

Focus on safety and passenger rights

Former Transport Minister Fikile Mbalula had previously highlighted the significance of these amendments, which not only create a new category of operating licences but also impose obligations on technology providers to prevent illegal operators. 

The amended act also places a responsibility on technology providers like Uber and Bolt to prevent unlicensed operators from using their platforms. Failure to comply could result in fines of up to R100,000.

The legislation also strengthens passenger rights and complaint-handling  procedures, ensuring a more secure and professional experience for ride-hailing users.