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Green light for Uber, Bolt in COVID-19 Taxi Relief Fund

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 28 Jan 2022

Local e-hailing firms have welcomed the Department of Transport’s move to include e-hailing drivers in the COVID-19 Taxi Relief Fund (TRF), noting the move recognises them as being an essential part of SA’s transport sector.

The fund offers a once-off payment for qualifying drivers that experienced loss of income during the various COVID-19-related lockdowns in 2020 and 2021.

Earlier this month, transport minister Fikile Mbalula announced a R1.1 billion fund, to assist drivers of minibus taxis, cab operators and e-hailing services whose businesses were affected by the COVID-19 pandemic and ongoing national lockdowns.

He pointed out that an estimated 227 000 taxi operators would each receive once-off relief to the value of R5 000.

“We welcome government’s inclusion of eligible e-hailing drivers in the R1.135 billion relief fund, as it highlights government’s recognition of e-hailing as an important mode of transport in South Africa, and that the platform stands separate from the likes of bus companies and other private transport businesses,” says Andrew Ihsaan Gasnolar, head of public policy for Southern Africa at Bolt.

The Department of Transport has been struggling to raise COVID-19 relief funds for the industry since the onset of the pandemic. This saw disgruntled Uber and Bolt drivers and operators lobbying government and creating a petition on Change.org.

In the petition, the ride-hailing operators and drivers complained they had been side-lined in the funding allocation, adding that as independent contractors, they contribute to SA’s economy through value-added tax and rightfully deserve a share of the disaster relief funds.

Andrew Ihsaan Gasnolar, head of public policy for Southern Africa at Bolt.
Andrew Ihsaan Gasnolar, head of public policy for Southern Africa at Bolt.

When this fell on deaf ears, they took their protest to the offices of the Gauteng Public Transport and Roads Infrastructure in Johannesburg.

“We welcome the introduction of the TRF by the South African government. This will assist the transport industry to recover from COVID-19’s devastating impact and we encourage qualifying e-hailing drivers to apply,” Mpho Sebelebele, head of communications at Uber South Africa, told ITWeb.

In order to qualify for the fund, e-hailing drivers must meet a set of criteria: they must be South African citizens or permanent residents, must be in possession of a valid operating licence, be registered as a taxpayer with the South African Revenue Services and possess a valid professional driving permit.

It is not clear what percentage of e-hailing drivers will qualify for the fund.

“Bolt drivers are micro-entrepreneurs and we do not have sight into how many drivers are registered taxpayers with SARS, and we therefore cannot estimate how many of them qualify,” notes Gasnolar.

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