South Africa Formalizes eHailing Services with New Transport Legislation

After more than ten years of operating in a legal gray zone, South Africa has officially incorporated eHailing platforms such as Uber and Bolt into its formal public transport system. On September 12, President Cyril Ramaphosa enacted the National Land Transport Amendment Act, marking a significant milestone in the country’s transport sector.

Bringing eHailing into the Legal Fold: What the New Law Entails

This legislation aims to regulate and standardize the eHailing industry, which has long existed in a semi-formal state, often caught between informal operations and legal ambiguity. The law introduces mandatory vehicle branding, eHailing permits linked to specific routes, and safety features like panic buttons. However, these new rules have sparked apprehension among drivers who fear the impact on their income and personal security.

Permit Restrictions and Their Impact on Driver Mobility

One of the most contentious aspects is the requirement that eHailing permits be tied to a driver’s city of residence. For instance, a driver registered in Pretoria can only pick up passengers within Pretoria’s boundaries. Traveling to Johannesburg to pick up fares is prohibited unless the driver returns empty-handed after dropping off a passenger. This restriction has been criticized for limiting operational flexibility and increasing fuel expenses.

Fickson Chauke, an eHailing driver, expressed frustration: “These regulations don’t align with the dynamic nature of technology-driven transport services that customers expect.” The permit application process, managed by municipal authorities, involves fees starting at approximately R300 (around $17), adding to drivers’ financial burdens.

Thobani Zulu echoed these concerns, emphasizing that the geographic limitations undermine the fundamental convenience and efficiency that eHailing services are supposed to provide.

Balancing Compliance with Driver Safety Concerns

Another major point of contention is the mandatory vehicle branding. Drivers using personal vehicles must collaborate with advertising or fleet companies to meet branding requirements, which some already do. However, many drivers feel that visible branding increases their vulnerability, especially in high-risk neighborhoods.

Johannesburg-based driver Qhubani Moyo shared, “While we want to be identifiable, branding my car feels like turning it into a target, especially in certain areas where crime rates are high.”

The National e-Hailing Federation has voiced serious concerns about the safety risks branding poses in townships and informal settlements, where drivers may become targets for criminal activity or conflicts with traditional taxi operators. These fears are grounded in reality: in August 2025, a violent incident at Maponya Mall in Soweto resulted in the death of an eHailing driver, injuries to two others, and the destruction of vehicles, highlighting ongoing tensions between eHailing services and established taxi associations.

Industry Perspectives: Navigating an Outdated Regulatory Approach

The Federation argues that the legislation reflects an antiquated understanding of the transport sector and technological innovation. Vhatuka Mbelengwa, a spokesperson, remarked that the policy discussions are overdue by at least a decade and that many of the proposed measures were suggested years ago but only now being implemented.

Several drivers have also criticized the lack of consultation during the law’s development. Chris Dlozi stated, “We are the primary stakeholders affected by these tech-driven regulations, yet our voices were not included in the decision-making process.”

Uncertainties remain, particularly regarding the mandated panic button feature. Drivers are unclear whether this device will be integrated within the app or installed physically in the vehicle. Emmanuel Mathye pointed out the potential limitations: “If the panic button is linked to a tracker, it could be disabled if a hijacker removes it, rendering it ineffective.”

Additionally, drivers who already operate branded vehicles report ongoing difficulties in obtaining the necessary permits. “We have waited years for permits that never materialized. Now, with new permits introduced, we worry the situation won’t improve,” one driver commented.

Looking Ahead: Industry and Government Collaboration

Uber has acknowledged the new legislation and is currently evaluating its implications. The company has committed to collaborating with government bodies and industry stakeholders to facilitate a smooth transition. Their priority remains ensuring drivers can maintain sustainable earnings while upholding safety and compliance standards, all while delivering reliable service to passengers.

Non-compliance with the new regulations carries significant penalties, with fines reaching up to R100,000 (approximately $5,700), underscoring the government’s intent to enforce the law strictly.