Uber registration opens door for e-hailing operating licences

It’s good news for drivers using Uber in need of e-hailing operating licences in South Africa. They can now take an important step towards legalising their operations, following Uber’s confirmation that it has been officially registered as a service provider under the National Land Transport Act (NLTA).

However, Uber is quick explain that its compliance doesn’t automatically guarantee e-hailing operating licences for its drives. Instead, its registration means they can now apply under the new regulations. Each operator must still comply with all rules for transporting passengers in their province.

E-HAILING OPERATING LICENCES

Moreover, Uber says it will provide region-specific guidance through its Driver app, explaining local requirements and providing supporting documents drivers need. As ever, the process begins with drivers obtaining the necessary affiliation or confirmation from Uber. The application is made for the vehicle providing the service, rather a general registration for the driver.

Drivers should check their specific provincial authority’s requirements before submitting an application. In the Western Cape, for example, applications for metered-taxi and e-hailing operating licences must be submitted in person.

OTHER NLTA RULES

Interestingly, other new rules of the NLTA say e-hailing vehicles must be identifiable through appropriate branding. However, this is clearly not the case for most Uber operators, while Bolt and InDrive are already compliant here. There is also a roadworthiness requirement and safety measures inside the vehicle must include a panic button.

Nevertheless, the scale of the challenge facing compliance in the e-hailing industry is still considerable. Many drivers work across more than one platform to make ends meet. Bolt says it has 40 000 drivers, while Uber says it has around 100 000 independent contractors, including its delivery couriers (these are the last verifiable figures we could source).

ILLEGAL E-HAILING OPERATING LICENCES

And how many are operating illegally? Back in 2020, the Competition Commission found nearly 80% of drivers were without the requisite e-hailing operating licences. Sure, that is an old benchmark, but Gauteng authorities have said more recently that the ‘majority’ of e-hailing operators do not have the necessary licences.

As such, Uber’s registration removes one important obstacle for drivers on the platform. But how long will the next step take? Standard e-hailing operating licences are R600 per vehicle in South Africa, with that fee going directly to the Provincial Regulatory Entity (PRE).

But what do you think? Will the e-hailing industry ever get into line and be compliant? Please share your thoughts in the comments section below …