New Transport Law that Recognises E-Hailing Sparks Industry Backlash
The Department of Transport has officially gazetted the National Land Transport Amendment Act (NLTA), formally recognising e-hailing services such as Uber and Bolt as part of South Africa’s public transport system.
While the move ends years of legal uncertainty, industry representatives warn that the new rules are impractical and could worsen tensions instead of resolving them.
The legislation, signed into law on 12 September after a 13 year wait, places all public transport operators from minibus taxis and metered taxis to e-hailing services under a single regulatory framework.
First passed by Parliament in 2020, the law was sent back by the president over constitutional concerns, revised, and only recently finalised.
According to the Department, the NLTA aims to create clarity, reduce long standing disputes between operators, and improve commuter safety. E-hailing vehicles will now require operating licences, carry visible branding, and operate within designated areas.
Panic buttons will also become mandatory, enabling quick responses from law enforcement or private trackers in emergencies.
App developers face heavy penalties if they allow unlicensed operators to work through their platforms, while MECs have been granted powers to impound non compliant vehicles.
Transport officials argue that the changes will bring long overdue order to the sector. But e-hailing associations say the opposite, describing the regulations as vague, costly, and regressive.
The National E-Hailing Federation of South Africa (NEFSA) has raised particular concern about requirements that drivers return to their pickup zones after dropping off passengers, warning this could undermine efficiency and revive outdated operating models.
NEFSA leaders also criticised the lack of consultation, saying their calls for engagement with the Department dating back to 2024 were largely ignored. They argue that issues such as vehicle branding, vetting, and departmental fees leave unanswered questions about costs and oversight.
Local associations have echoed these concerns. Pretoria West e-hailing warned that mandatory branding and panic buttons could expose drivers to greater risks, while further pushing up costs for both operators and passengers.
Leaders in the sector argue that the government has prioritised appeasing the taxi industry over addressing the realities of e-hailing, and that the new framework could destabilise the industry much like metered taxis before it.
Despite the backlash, the Department has indicated that information workshops will be held across the country to ensure operators and officials are briefed on the new requirements.
The NLTA represents a landmark step in regulating South Africa’s transport landscape. But whether it will ease tensions or create new fault lines between operators remains to be seen.