Incoming new models a sign of our commitment: Volvo MD
The brand has faced criticism in recent months for its reduction in dealerships, which has led to speculation of it possibly leaving South Africa at some stage.
Earlier this month, taxi operators killed one e-hailing driver and injured another two outside Maponya Mall, Soweto. This resulted in a major protest from residents.
Speaking with the Sunday Times, Creecy said that the National Land Transport Amendment (NLTA) Act would introduce regulations for e-hailing services like Bolt and Uber, and could help ease rivalry.
The legislation, which was assented to by President Cyril Ramaphosa in 2024, has been on the books for well over a decade.
Under the new legislation, e-hailing drivers will no longer be required to use charter permits and meter taxi operating licences in South Africa. They will receive an official e-hailing operating licence.
Each vehicle will also be branded or carry a sign saying it is an e-hailing vehicle. Its operating licence will also lay out the geographical area in which it operates.
Creecy said the new system will ensure no oversupply of public transport services.
E-hailing drivers will also be vetted and subject to criminal record checks per the new regulations. A professional driving permit will also be required.
Vehicles will need panic buttons, and drivers must ensure their profile photo is up-to-date for client identification.
Failure to comply with the current regulations could carry a penalty of up to two years in prison or a financial penalty of up to R100,000.
Regulators are empowered to withdraw or suspend licences in cases where an operator has contravened the NLTA.
Creecy approved the NLTA Act in March. It is currently being translated into a second official language before being gazetted for implementation, which should be in October.
Big push for change
From the outset, a significant push for the NLTA Act was its ability to reduce tensions between metered taxi and ride-hailing drivers.
The incident outside Maponya Mall is just one of many incidents where violence between e-hailing drivers and taxis has hit South Africa, particularly in Soweto.
The Soweto Taxi Association previously had issues with individuals with no credentials posing as e-hailing drivers to make a commission, which were often at an uncompetitive rate.
The South African National Taxi Council (Santaco) said implementing the NLTA Act is necessary given the current situation, which has led to a proliferation of unregulated operators in the space.
Although Creecy believes the new laws will help reduce violence, she stressed that change was inevitable and coming to the industry.
She noted that taxi operators are still part of the modern world, where you either change with the times or don’t survive.
She noted that research in the Western Cape showed minibus taxis were best suited for the final leg of a commuter’s journey and not long stretches, where rail was better for communities.
The minister said that the department was working with the Western Cape and Gauteng to promote interoperability between the different modes of transport.
She noted that Gauteng has been looking for an integrated ticketing system where one ticket can be used for bus, taxi, and train travel.
Issued on BusinessTech by Luke Fraser | https://businesstech.co.za/news/motoring/835846/big-changes-coming-for-uber-and-bolt-in-south-africa/
