South Africa’s transport department has officially gazetted major amendments to the National Land Transport Act, with the changes taking effect from Friday, 12 September 2025.
The amendments follow years of consultation and are designed to close gaps in public transport law exposed by the rise of e-hailing platforms such as Uber and Bolt.
For the first time, the Act formally recognises e-hailing services as part of the regulated public transport sector. This means metered and minibus taxis can no longer dismiss ride-hailing as “illegal”. However, the recognition comes with new obligations for both drivers and platforms.
Operating licences and stricter compliance
E-hailing drivers will now be required to obtain operating licences before they can legally provide services. “This will ensure that services remain authorised and safe,” the department explained.
According to the department, the Provincial Regulatory Entity offices will check compliance before issuing operating licences.
To boost security, all vehicles must display branding or signage identifying their company and be fitted with panic buttons for passengers. “Vehicle owners are responsible for making sure these are installed,” the department said.
“The panic button for commuters will assist with crime detection and enable a rapid response by law enforcement or tracking companies.”
Passengers are also urged to double-check that vehicle and driver details match those displayed in the app. “Commuters are also required to ensure that the vehicle and driver are compliant,” the department added.
Heavy penalties for non-compliance
The legislation introduces severe fines and penalties for e-hailing companies and developers who bypass the law. Any app that allows unlicensed drivers to operate could face fines of up to R100,000 or jail terms of up to two years.
Companies must also be fully registered under the Department of Trade, Industry and Competition and comply with SARS requirements. Additional costs may apply outside the department’s oversight. To guide operators, workshops will be held nationwide from next week.
Limits on where drivers can operate
The new rules also set boundaries on where drivers may legally operate. As transport department spokesperson Collen Msibi explained, operating licences will specify a driver’s area of jurisdiction.
Drivers may accept trips that take passengers outside their operating area, but they are not permitted to pick up new passengers beyond it. For example, a driver licensed in Gauteng can take a trip into Limpopo but must return empty, without payment, unless licensed for that region.
Addressing tensions and public trust
Bolt and Uber dominate South Africa’s ride-hailing industry, but their operations have long been a point of tension with taxi associations. These legislative changes aim to ease some of that friction, though it remains uncertain whether they will succeed.
Beyond compliance, both companies face the challenge of restoring consumer trust. Complaints about deteriorating vehicle standards, inadequate safety features, and weak customer service have dogged the platforms.
Wayne Duvenage, CEO of the Organisation Undoing Tax Abuse, told MyBroadband that service quality should be a top priority. “This has resulted in a less customer-centric experience, vehicles that are tired and a general reduction in attention to detail and all-around professional experience,” Duvenage said.
He also criticised the industry model, noting that drivers are often allowed to work across multiple platforms, with companies prioritising high-volume, low-margin operations. “Apart from the occasional outlier, I certainly don’t get the impression that drivers are trying to exceed one’s service level expectations,” he added.
