The e-hailing industry in South Africa is taking a new direction, with new regulations, safety enhanced, and the industry legitimately recognised by the law. Over the years, companies such as Uber, Bolt, and inDrive have been operating in an almost unregulated space. The conflict between taxi drivers and e-hailing drivers led to the issue of the safety of passengers and the driver’s responsibility.
That is where the National Land Transport Amendment Act (NLTA) intervened and introduced new regulations to set clear rules in the industry, standardise operations, and balance the e-hailing market between e-hailing drivers and taxi drivers.
New Regulatory Framework for E-Hailing
The NTLA has now recognised e-hailing services as a legitimate public transport provider. This legal recognition has significant implications. Drivers now need to secure operating licenses from Provincial Regulatory Entities (PREs), which are specific to certain regions. These replace older requirements like charter permits or meter taxi licenses.
Also, cars should have visible e-hailing branding to help passengers easily identify licensed vehicles. This provides visibility and helps to safeguard drivers and passengers, and encourages a professional, regulated industry.
E-Hailing Laws Now Live
The much-anticipated NLTA and its amended regulations came into force on 12 September 2025 after being gazetted on 11 June 2024. The regulations set the rules for e-hailing services and are aimed at improving and maintaining security and quality.
Safety is the Cornerstone of the Regulations
Here are new laws that will benefit both the driver and passengers:
Panic Buttons
Every licensed e-hailing car must now be fitted with a panic button. If drivers feel unsafe during a ride, they will have a direct line to emergency help. This is in response to safety concerns.
Criminal Background Checks
All e-hailing drivers will be subject to criminal vetting. Anyone with a serious offence should be screened out before they get behind the wheel. For passengers, that’s an assurance that the person driving you isn’t hiding a dangerous past.
Up-to-date Driver Profiles
Drivers must keep their app profiles updated, including photos, so you know the face behind the wheel matches the app.
Have a RICA-registered SIM Card
Drivers must not use SIM cards bought informally or on the streets. Every e-hailing driver must use a RICA-registered SIM card. This makes it possible to trace and verify a driver’s identity if anything happens during a trip.
E-hailing Platforms’ Responsibility
The NLTA has indicated that e-hailing platforms are supposed to be accountable. The companies are obligated by law to ensure that all drivers on the network adhere to the new regulations. Failure to adhere to laws may lead to fines or a temporary shutdown.
Timelines and Compliance Challenges
The Department of Transport has given drivers a period of 180 days to comply with the new laws. While this period offers time to adjust, many drivers are worried about the costs involved. That includes: Getting licenses, upgrading vehicles for safety compliance, and installing branding, which can be expensive.
Industry Reactions
The announcement of the new laws has drawn both praise and criticism from people in the e-hailing industry. Passengers generally welcome the improved safety and professionalism; on the other hand, drivers have voiced concerns. Some fear that branded vehicles will make them become targets in high-crime zones, while others worry about the administrative burden they will encounter in complying.
What Happens to Unlicensed or Unsafe Drivers?
The new act brings in harsh penalties. If Uber or Bolt allows drivers without proper licenses to operate on their platforms, the companies face fines of up to R100,000 or even two years in jail for responsible individuals.
Drivers who don’t comply risk having their licenses suspended or revoked. That means fewer unregulated operators slipping through
The NLTA has opportunities and challenges for entrepreneurs. The individuals who will adapt fast will be in a position to be seen as professional, trusted service providers, and they will have a competitive advantage. Finally, a regulated e-hailing sector is beneficial to all, including drivers, passengers, and the transport ecosystem in general.
The Act provides a much-needed framework for clearer and more consistent regulation, which can ease tensions between e-hailing operators and the traditional taxi industry, helping to create a safer, fairer, and more collaborative transportation landscape.
