For the first time, e-hailing is formally recognised as a distinct mode of public transport, alongside metered taxis and minibuses. The amendment introduces a regulatory framework aimed at enhancing safety, accountability and compliance within the growing sector.
Mandatory Operating Licences and Safety Rules for Uber, Bolt
Under the amended legislation, all public transport operators - including e-hailing platforms - must hold valid operating licences. Without a licence, services will be deemed illegal. This move is designed to ensure that public transport services, regardless of the platform, remain authorised, safe and properly monitored.
The new regulations further mandate minimum safety standards, such as the installation of panic buttons in all e-hailing vehicles. These features are intended to protect both drivers and passengers amid rising concerns over safety and crime in the sector.
The regulations also aim to address the escalating tensions between e-hailing operators and traditional taxi drivers. These tensions recently culminated in violent clashes, including the death of an e-hailing driver in Soweto and a community protest at Maponya Mall, calling for restrictions on taxi drivers in the area.
App developers that allow users to operate without valid licences may face fines of up to R100 000 or imprisonment for up to two years.
All e-hailing vehicles must have a panic button installed.
Drivers must carry all necessary compliance documentation.
All vehicles must comply with road safety laws.
E-hailing operators will be subject to an operating licence fee when applying for an operating licence.
E-hailing vehicles must be visibly branded or carrying a sign indicating it is an e-hailing vehicle.
Vehicle and driver data must be accurate and visible on the app.
“Commuters must verify that vehicle and driver details appear in the app, and if not, should exercise precaution,” the statement read. “Commuters are also required to ensure that the vehicle and driver are compliant. Drivers are required to have the requisite documents to be eligible for compliance.”
Legal, Tax and Compliance Requirements
In addition to transport-specific regulations, e-hailing companies must also register as legal entities in South Africa and comply with relevant business laws under the Department of Trade, Industry and Competition (DTIC), as well as the South African Revenue Services (SARS).
These requirements are expected to incur additional administrative and financial costs for operators. However, the Department has committed to supporting the sector through this transition.
“We will hold workshops to share this information with all operators and officials across the country starting from this week," concluded the Department.
Lungile is the Digital Editor for Startup.Africa, with a knack for storytelling, technology and innovative ideas. Working with Startup.Africa, she takes simple ideas and turns them into amazing stories.
Lungile Msomi
