The new National Transport Act amendment bill now allows the Transport Minister Sindisiwe Chikunga to set ride-hailing prices, a job that used to be up to the platforms.
Following reactions to the new act being passed, operators in the ride-hailing industry are happy about this change. Melithemba Mnguni from the E-Hailing Partners Council said the updates were long overdue and tackled important issues like pricing, safety, and communication between operators and platforms.
Mnguni pointed out that operators have felt underpaid and that the market is too crowded. While platforms didn’t want the minister to set prices, operators thought this change would better address their needs.
Minister Mnguni hopes the new pricing system will include their input.
However, some aren’t so optimistic, according to a Bolt operator, Kenny Moretsele, head of the Ekurhuleni e-hailing association, worries that the bill’s price regulation rules are still unclear and might lead to issues like price dumping.
President Ramaphosa signed the amended act into law after thirteen years, finally bringing e-hailing services into the fold. The Department of Transport is pleased and will now work on getting the regulations approved.
These new rules will make it easier for ride-hailing services to operate, removing the need for charter permits and meter taxi licenses.
Notably, the changes also give Minister Chikunga more power to create new regulations and safety measures while streamlining the process of getting operating licenses. Recall that the industry’s struggle to get these licenses has been a long-standing issue.
