The SA Transport Ministry has proposed amendments to the National Land Transport Act (NLTA) 2009 that include a number of clauses with specific reference to e-hailing and ridesharing operators.
Uber has voiced some concerns regarding the proposed amendments. Chief amongst these is clause 66(7) of the proposed amendments, which instructs e-hailing operators to deny access to their systems to any driver who doesn’t have the necessary operating licenses. Failure to do this can result in ridesharing and e-hailing companies having to pay a fine of up to R100 000. Drivers are also subject to the fine as well as two years imprisonment which is a great concern for drivers’ welfare.
This according to Alon Lits, general manager for Uber in Sub-Saharan Africa who said, “The permit-issuing systems and processes of many of South Africa’s major municipalities are flawed and this has resulted in massive application backlogs and delays of up to 18 months in the issuing of operating licenses.”
Lits said Uber currently has over 12 000 active drivers in South Africa that are often the breadwinners for their families, and therefore the economic opportunity Uber provides has a direct impact on thousands of people.
“We estimate that if the backlog and delays around the current system for issuing operating licenses are not resolved before this clause comes into effect, there would be a loss of approximately 9 000 direct job opportunities and consequent negative impact on 27 000 people whose livelihoods depend on the e-hailing industry.”
He said that while the majority of Uber drivers have applied for their operating licenses, most have not received these permits due to lengthy delays by municipalities.
Alternatively, Uber has requested that the transport minister includes a clause in the amendments that allows drivers to operate legally if they have submitted fully compliant applications and are in possession of receipts, but where the operating license has not yet been issued by the municipality.
“By reconsidering its proposed amendments to the Act in these ways, the Transport Ministry has the opportunity to demonstrate that it is fully committed to building a fair, equitable and well-run transport operating environment,” ended Lits.
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