South Africa Puts Uber and Bolt in Check With Strict New Transport Law

 

For years, Uber and Bolt drivers in South Africa operated in a legal grey zone. Traditional taxi associations called them illegal. Policymakers looked the other way while commuters embraced the convenience. The result was conflict, safety concerns, and uncertainty for thousands of drivers making a living on these platforms.

That landscape has now shifted. South Africa’s amended National Land Transport Act (NLTA) has officially recognized e-hailing as part of the public transport system, bringing it under the same regulatory umbrella as metered taxis and buses. The move introduces strict licensing requirements, vehicle standards, and platform accountability, marking the most significant change to the country’s ride-hailing ecosystem since Uber entered in 2013.

What the law demands

The law does more than simply acknowledge ride-hailing. It rewrites the rules of the game:

• Licensing is mandatory: Every driver must obtain an operating license before picking up passengers. These licenses are tied to specific geographic areas, meaning drivers cannot legally operate outside their approved zones.

• Vehicles must meet new standards: All cars must be roadworthy, branded with e-hailing signage, and fitted with panic buttons to protect both drivers and passengers.

• Platforms face accountability: Companies like Uber and Bolt must ensure that only licensed drivers operate on their apps. If they fail, they face fines of up to R100,000 or even jail terms for executives.

• Identity verification: Drivers must upload up-to-date photos and documents that match their app profiles, while passengers are encouraged to double-check these details before boarding.

Why government says it matters

Authorities argue that the new rules bring clarity to a sector plagued by disputes and violence. Traditional taxi operators often clashed with e-hailing drivers, sometimes fatally, because of overlapping territories and lack of legal recognition. By setting operating zones and requiring licenses, the government hopes to reduce friction and level the playing field.

Safety is another major driver. South Africa has faced high rates of violent crime targeting commuters and drivers. Mandatory panic buttons, stricter background checks, and branding are intended to give both sides more protection.

The challenges ahead

While the law looks comprehensive on paper, its rollout raises tough questions:

• Licensing bottlenecks: Provincial Regulatory Entities already face backlogs. Adding thousands of new e-hailing applications could slow down approvals, leaving drivers in limbo.

• Cost burden: Compliance comes with expenses, panic buttons, signage, insurance, vehicle checks. For drivers already squeezed by high commissions and fuel prices, these costs may push margins to the breaking point.

• Enforcement gaps: South Africa’s provinces have different levels of capacity. Uneven enforcement could leave some regions heavily regulated while others remain lax, undermining fairness.

• Impact on fares: Higher costs usually flow to consumers. If fares rise, passengers could face tougher choices between convenience and affordability.

The bigger picture

This law is part of a global shift. Cities from London to Lagos have been rethinking how to regulate e-hailing platforms that disrupted traditional transport industries without clear frameworks. South Africa’s approach is stricter than some markets, with heavy penalties for non-compliance, but it also provides long-awaited legitimacy for drivers who have spent years operating in uncertainty.

Whether it leads to a safer, more reliable industry or simply drives up fares will depend on how the government enforces the law and how platforms share the burden with drivers. For now, South Africa has drawn a clear line: Uber and Bolt are no longer outsiders in the transport sector. They are officially part of it, and that means playing by the rules.