New transport law imposes R100,000 fine or two years’ jail for illegal E-hailing operators
The Department of Transport has announced that e-hailing app developers who allow unlicensed operators to use their platforms could face fines of up to R100,000 or up to two years in jail.
Image: File
The Department of Transport has announced that e-hailing app developers who allow unlicensed operators to use their platforms could face a fine of at least R100,000 or up to two years in jail.
This comes as part of the newly gazetted National Land Transport Amendment Act, which aims to regulate e-hailing services and improve commuter safety by enforcing strict licensing and compliance rules.
The new regulations also aim to address the long-standing conflicts between e-hailing drivers and the traditional taxi industry clashes that have, over the years, resulted in loss of life.
IOL previously reported that some of the new regulations include the requirement for e-hailing drivers to obtain official operating licenses, mandatory branding of vehicles, and compulsory installation of panic buttons in vehicles to enhance safety for both drivers and passengers.
In a statement released to the media, national spokesperson Collen Msibi said that the app developers who permit users to use their apps without an operating license will face serious consequences.
"App developers who permit users to use their apps without an Operating License risk a fine of up to R100,000 or up to two years in jail. All apps must also be registered with the regulators," Msibi said.
He added that the Department of Transport will be rolling out workshops across the country starting next week to educate operators, app developers, and officials on the new regulations and compliance requirements.
"App companies are required to register and comply with company laws in South Africa under the Department of Trade, Industry and Competition (DTIC) and South African Revenue Services (SARS), and there may be other requirements with costs".
"The Department will hold workshops to share this information with all operators and officials across the country starting from next week".
IOL Business
mthobisi.nozulela@iol.co.za