Bad news for people who use Uber and Bolt in Cape Town

The Western Cape Mobility Department will not support any more operating licences for metered taxis and e-hailing services after approving the “full allowed quota” of 3,354 licences, EWN reports.

This was after the department’s Provincial Regulatory Entity (PRE) received more than 14,000 applications. A large portion of these applicants will be unable to operate legally in the province.

Many e-hailing drivers have complained of being unable to obtain operating licences despite following due process.

These drivers are frustrated and unable to work as officials impound the vehicles of drivers operating without a permit.

Western Cape Mobility Department spokesperson Muneera Allie said the province committed to supporting around 3,300 new operating licence applications, which will be judged on a first-come, first-served basis.

“The PRE proceeded to approve the full allowed quota of 3,354 new operating licences on a first-come-first-serve basis,” said Allie.

“As a result of the quota being reached, the City of Cape Town has indicated that no further operating license applications will be supported.”

However, Western Cape E-hailing Association general secretary Omar Parker said the PRE is still accepting applications.

“What is happening is that the city is generating a lot of revenue from this. Permits are not being released,” said Omar.

“They say they’ve reached their ceiling, they’re in excess, and they can’t release any more, but yet applications are still being taken in. On the other hand, the impoundments are still going on.”

Government’s failure to issue operating licences has been a headache for e-hailing drivers, not just in the Western Cape, but also in Gauteng’s metros for several months.

In late January 2025, the E-hailing Partners Council (EPC) warned commuters in Gauteng over planned protest action involving Uber and Bolt drivers over vehicle impoundments.

The EPC described the impoundments as unjust and against the interests of ride-hailing operators.

“We have taken note of the protest/strike organised by operators against the ongoing impoundments,” the EPC said in a January statement.

“This is against a common cause across the e-hailing industry and beyond. The initiative is a genuine effort to stop the impounds in the interest of operators and drivers.”

The issues stemmed from the Gauteng Roads and Transport Department’s failure to issue operating licences, which the EPC said was due to a lack of necessary systems.

The department had a roughly two-year backlog at the time.

“This is despite the department having imposed a moratorium four years ago to fast-track the backlog,” the EPC added.

It said around 21,000 operating licence applications were under consideration by the department, However, the department had only issued around 9,000.

“This shows that e-hailing operators are keen to comply,” the EPC said.

“On the other hand, they are allowing impoundments to take place, yet the lack of compliance is caused by the department.”

Ride-hailing operators have complained about stronghanded enforcement of operating licences in South Africa, which only became compulsory for e-hailing services in June 2024 after President Cyril Ramaphosa signed an amendment to the National Land Transport Act.

The amendment enabled ride-hailing drivers to apply for operating licences like any other public transport officer, instead of having to use charter permits and meter taxi operating licences.

Former transport minister Sindisiwe Chikunga welcomed its signing.

“Now that the President has signed the Amendment Bill, regulations will be submitted to the office of the State Law Advisor for certification and submitted to the minister for approval,” her department said.

“This Bill amends the National Land Transport Act of 2009 to bring it up to date with developments since the implementation and simplifies various provisions or solves problems that have arisen since the implementation; and makes provisions for non-motorized and accessible transport,” added Chikunga.

“The NLTA now reflects our commitment to a modern, inclusive, and efficient transport system.”