New law aims to crack the whip on chaos in the transport industry

As tensions between the taxi industry and e-hailing operators continue to escalate, South Africa is preparing to implement a landmark regulatory shift.

The National Land Transport Amendment Act (NLTA), which comes into effect in just a week, seeks to formally regulate e-hailing services, promote fairness in the transport sector, strengthen commuter safety, and curb the violent clashes that have increasingly unsettled communities across the country.

Earlier this month, the country saw violent clashes between e-hailing drivers and taxi operators. In Soweto, an e-hailing driver was shot dead, his car set on fire, and two others were injured outside Maponya Mall, sparking widespread protests. 

Last Wednesday, in KwaDabeka, KwaZulu-Natal, two e-hailing drivers were shot and attacked by taxi operators after being confronted and told to leave the area.

During the confrontation, gunfire erupted, leaving one driver narrowly unharmed while the other was assaulted. Police later arrested 15 people, including taxi drivers and owners, and confiscated 12 firearms during follow-up operations.

The next day, the Benoni Taxi Association (BTA) halted all taxi operations in Benoni, Ekurhuleni, leaving commuters scrambling for alternative transport. The BTA cited the impoundment of minibus taxis, claiming the vehicles were being unfairly targeted for operating without licenses.

It has taken 13 years for the NLTA Bill to finally become law. Initially passed by Parliament in 2020, the Bill was sent back by the President after concerns over its constitutionality, prompting further revisions before it was signed into an Act.

Under the new Act, public transport operators, including taxi and e-hailing services, are to have operating licenses. This ensures that services remain authorised and safe. Additionally, the Act sets rules for e-hailing services to maintain quality and security. 

Speaking to The Star, National Transport Department spokesperson Collen Msibi explained that the Act applies to the entire land transport sector, covering minibus taxis, metered taxis, and e-hailing operators.

He said the amendments introduce clearer rules for each group, particularly by formally recognising e-hailing services and streamlining the licensing process. 

According to Msibi, these changes are expected to reduce tensions between operators, improve commuter safety, and provide long-overdue regulation for the e-hailing industry.

Msibi added that each vehicle will also be branded or carry a sign saying it is an e-hailing vehicle. Its operating license will also lay out the geographical area in which it operates. 

“If an e-hailer is operating in Tshwane and transports someone from Limpopo, the expectation is that they must drop off the passenger and return to the area where they are registered. Though it is a door-to-door service, it becomes a problem when an e-hailer picks up a different passenger from a different location on the way back. That’s when the issues of competition arise.”

Msibi added that law enforcement will monitor compliance, with MECs empowered to seize unlicensed or unroadworthy vehicles, including taxis, and non-compliant app operators facing penalties.

“Law enforcement agencies will monitor compliance, and MECs can designate impoundment zones where vehicles without licenses or those that are unroadworthy can be seized. App developers who enable unlicensed operations risk fines of up to R100,000 or two years in jail,” he said.

Msibi also states that the new Act now requires panic buttons to be installed in vehicles to help keep commuters safe and provide quick emergency response.

“Most tracker companies offer panic button options. Vehicle owners are responsible for making sure these are installed. The Department will hold workshops to share this information with all operators and officials across the country. 

“The panic button for commuters will go a long way in assisting with crime detection and enabling a rapid response by law enforcement or private security from tracking companies. Commuters are also required to ensure that the vehicle and driver are compliant,” said Msibi.

He added that drivers must present the required documents to qualify for compliance, with the Provincial Regulatory Entity (PRE) verifying all applications before issuing operating licenses. 

Msibi stressed that oversaturation in the market must be avoided, as it hampers industry growth. To manage this, cities' integrated transport plans will guide the demand and supply of services and advise provincial PRE offices to issue only the necessary number of operating licenses within each jurisdiction.

Law enforcement agencies are geared and empowered to tackle all acts of criminality. 

He noted that the National and Provincial Joint Committees are already on high alert, with the government ready to mediate disputes between conflicting parties as needed.

Msibi emphasised that the Act empowers MECs or relevant regulatory bodies to suspend operating licences, shut down routes, or close taxi ranks during periods of violence or unrest when mediation efforts are unsuccessful, along with allowing for the seizure of cars and the imposition of fines for violations. The NLTA also gives authorised officials the authority to carry out enforcement tasks.

In another development, Gauteng MEC for Transport Kedibone Diale-Tlabela recently disclosed plans for the province to develop its own e-hailing platform amid rising tensions. 

However, ActionSA has expressed concern, noting that while the initiative is intended to enhance commuter safety and formalise the sector, there is a risk it could become merely a publicity exercise, diverting attention from the African National Congress (ANC) government’s ongoing shortcomings in the transport sector.

“The provincial government, under ANC leadership, has repeatedly squandered public funds on grand integrated transport projects that have delivered little to no benefit for commuters, hence the escalating traffic congestion on our roads exacerbated by dysfunctional traffic lights and, of late, the tragic loss of an e-hailing driver’s life.”

ActionSA further stated that Gauteng residents have yet to see any benefits from the Smart Mobility 2030 initiative, which was designed to create a connected, integrated, and efficient transport system using smart technology to reduce congestion and improve road safety. 

The party stated that the plan included the Transport Authority of Gauteng (TAG) to coordinate transport planning and implementation between the provincial government and municipalities, as well as a centralised Command and Control Hub, the Transport Management Centre (TMC), aimed at modernising transport services through digital transformation with a focus on safety and reliability.

“Promised integration between Rea Vaya, taxis and other public transport modes has never materialised, leaving commuters stranded, unsafe and in traffic chaos. Nor has the Integrated Rapid Public Transport Network (IRPTN) seen the light of day, over a decade after its ‘development’,” the party revealed.

The Star

masabata.mkwananzi@inl.co.za