E-Hailing Industry: A License to Loot or a New Era of Regulation?
The recent signing of the amended National Land Transport Act into law has sparked mixed reactions in the e-hailing industry. While some see it as a long-overdue step towards regulation and legitimacy, others fear it may lead to further exploitation of drivers and passengers alike.
A License to Loot?
Critics argue that the Act’s provision for the minister of transport to regulate pricing in the sector may lead to a free-for-all, with e-hailing companies interpreting the law to suit their own interests. This could result in price dumping, further eroding the already precarious income of drivers.
A New Era of Regulation?
Proponents of the Act, on the other hand, believe it marks a significant step towards formalising the industry and ensuring operators comply with legal standards. This, in turn, could lead to improved service delivery and a more inclusive transport system.
Drivers’ Concerns
For e-hailing drivers, the Act’s signing is a double-edged sword. While it recognizes them as independent operators, it also opens the door for price regulation, which could lead to further exploitation. "In the past, e-hailing vehicles were considered metered taxis or shuttle services, so now we are recognised as independent operators," says Kenny Moretsele, Bolt operator and chairperson of the Ekurhuleni E-hailing Association. "But the biggest concern I have is section four of the Act, which gives the minister of transport authority to regulate pricing in the sector. This section does not provide clear guidelines on what she is supposed to do to determine the prices."
Aghadiuno’s Take
Weyinmi Aghadiuno, acting head of regulatory and policy at Bolt Africa, welcomes the signing of the Act, saying it will "positively impact the ride-hailing industry in South Africa" and "formalise the industry, ensuring operators comply with legal standards, thereby improving the overall quality and enhancing service delivery in the transport sector."
Ramaphosa’s Legacy
The signing of the Act into law is a significant step in the legacy of President Cyril Ramaphosa, who has faced criticism for his handling of the e-hailing industry. The Act’s signing is seen as a response to the concerns of e-hailing drivers and operators, who have been demanding regulation and legitimacy for years.
The Road Ahead
As the regulations are submitted to the Office of the State Law Advisor for certification, the industry waits with bated breath to see how the Act will be implemented. Will it lead to a more regulated and legitimate industry, or will it pave the way for further exploitation? Only time will tell.
