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South Africa transport bill Uber and Bolt regulation: The recently passed National Transport Act amendment bill gives South African transport minister, Sindisiwe Chikunga powers to set prices for ride-hailing operators in the country.
He will be able to set ride-hailing prices, rather than leaving it up to the companies, including Bolt and Uber.
South Africa Transport Bill Uber and Bolt Regulation
President Cyril Ramaphosa signed the National Land Transport Act 5 into law last week. This development ends a 13-year wait for the updated Bill.
It also puts the regulation in line with digital economy advancements since its implementation.
This change in the ride-hailing industry is welcomed in the country. Melithemba Mnguni from the E-Hailing Partners Council highlighted that the new development is long overdue.
He also expressed that it tackles important issues like pricing, safety, and communication between operators and platforms.
Mnguni pointed out that operators have felt underpaid and that the market is too crowded.
While platforms didn’t want the minister to set prices, operators think this change will better address their needs. Mnguni hopes the new pricing system will include their input.
South Africa Transport Bill Uber and Bolt Regulation Expands Minister of Transports Reach
Sindisiwe Chikunga, South Africa’s Minister of Transport, said, “This Bill amends the National Land Transport Act of 2009. It brings the act up to date with developments since the implementation.”
“It also simplifies various provisions or solves problems that have arisen since the implementation, and makes provisions for non-motorized and accessible transport.”
Also Read: South Africa Introduces Law to Regulate Ride-Hailing Services
The amendments expanded Chikunga’s powers to implement new regulations and safety measures while streamlining the administrative side of processing operating licenses.
Previously, these ride-hailing companies, such as Bolt and Uber, operated in a legal gray area.
They relied on charter permits and meter taxi operating licenses that needed to be a better fit for their business model.
However, under the new regulations, ride-hailing service providers will no longer be required to apply for and use charter permits and meter taxi operating licenses.
Ride-Hailing Platforms Response To The New Amendment
According to MyBroadband, Bolt chairperson of the Ekurhuleni e-hailing association, Kenny Moretsele highlighted the potential challenge that could arise from the amended regulations.
He said, “The price regulation aspects of the bill are unclear and vague. We are still going to suffer from the same trend of price dumping in the industry.”
He went on to note that the Act legalizes the operations of e-hailers in South Africa and recognizes them as transport companies. This is opposed to tech companies, which they were previously registered as.
