The local e-hailing industry has welcomed the City of Cape Town’s decision to lift the temporary prohibition on applications for new operating licences, noting it will help create more e-hailing jobs in the Western Cape.
In February 2021, the City of Cape Town imposed a moratorium on the metered-taxi operating licences, with the intention to ensure the long-term sustainability of the industry.
This, after the provincial government was concerned about an over-supply of metered-taxis in the city. From 2015 to January 2021, the number of metered-taxi operating licences increased from 685 to 4 300.
This week, the city announced the lifting of the moratorium, noting the Western Cape Provincial Regulatory Entity (PRE) will soon announce how and when operators can apply for new metered-taxi operating licences.
The metered-taxi industry includes vehicle drivers operating from a rank, base or an e-hailing platform.
Ofentse Mokwena, head of public policy for Uber South Africa, comments: “We want to thank the persistent efforts of drivers, as well as the mayor, relevant counsellors, the transport and urban development authority, and the minister of transport for the Western Cape.
"This is a positive step for the industry and the economy, as it will open up new earning opportunities, while providing convenient and reliable options for riders across Cape Town. With the current unprecedented economic climate, we believe this move will open doors for more e-hailing drivers to make a respectable living for themselves and their families.”
The Urban Mobility Directorate conducted a survey in the latter part of 2022 to determine the demand for and supply of metered-taxi services across the city.
Customers and operators participated, and e-hailing platforms assisted the city with additional information. This method determines the number of operating licences that can be supported based on the current demand for these services from the public, according to the city.
The National Land Transport Act requires that the city follows a clear and transparent process to decide on supporting new operating licences to be issued by the PRE. This supply-and-demand method has now been established and will guide the city going forward, until such time as legislative changes allow for a more market-based determination, it says.
“I welcome the end of this moratorium. It is good news for the market, and good news for the e-hailing industry, which supports thousands of entrepreneurs and their families,” says Cape Town mayor Geordin Hill-Lewis.
“On taking office, it was a focus of mine to end the moratorium well ahead of the initial December 2023 timeframe. The city’s work has included completing an inventory of all metered-taxi operating licences in the system, developing a method of determining demand for metered taxi-services and establishing a forum for engagement with the industry.”
The PRE will soon announce the next steps and the process to be followed by those wanting to apply for metered-taxi operating licences and the documents needed to do so, notes the city.
The entity is responsible for receiving applications and the issuing of public transport operating licences.
According to Uber and Bolt, the move will pave the way for the first step towards creating a regulatory framework for the e-hailing industry.
E-hailing drivers and operators have for years been calling for the regulation of the industry, noting it will create a conducive environment for healthier working conditions and fair wages.
“We look forward to working with the city to build on this important first step in building distinct and conducive regulatory measures that enable drivers and passengers across the city to benefit from the services on our platform,” explains Andrew Ihsaan Gasnolar, Bolt head of public policy for East and Southern Africa.
“As we await a further announcement from PRE on the next steps, we are optimistic that the outcome will be fruitful and will showcase support to the driver community and to the thousands across the city that rely on our services.”
Bolt will continue to work closely with the City of Cape Town to continue to create a better working framework for drivers, adds Ihsaan Gasnolar.
Mokwena points out: “We [Uber] are pro-regulation and open to engaging with regulators to find ways for drivers to easily obtain economic opportunities, while being compliant. We have demonstrated this with the City of Cape Town by supporting their surveys, collaborating and providing relevant information to inform their decisions.”
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