E-hailing industry ready for increased operating licences in Cape Town

On Wednesday the e-hailing industry will start applying for more operating licences in Cape Town. Picture: File

On Wednesday the e-hailing industry will start applying for more operating licences in Cape Town. Picture: File

Published Feb 26, 2023

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While the e-hailing industry has welcomed the lifting of the moratorium on the issuing of the operating licenses, concerns have been raised about possible retaliation from the minibus drivers.

The City advised the Western Cape Provincial Regulatory Entity (PRE) of the lifting of the moratorium on new applications for metered-taxi operating licences that the City put in place in February 2021. Applications can be made from Wednesday.

Mayco member for Urban Mobility Rob Quintas said 2 643 licences were available for metered-taxis and e-hailing services.

He added there was a demand for 6 000 metered-taxi operating licences in Cape Town.

“The lifting of the moratorium will be executed in two phases. The first phase will allow the holders of some 711 lapsed metered-taxi operating licences to apply for the renewal on Monday, and Tuesday.

“For new entrants to the metered-taxi industry, an additional 2 643 operating licences are available and applications for these licences open on Wednesday.

“There are currently 2 646 legal metered-taxi operators, meaning, 2 646 metered-taxi operators have valid operating licences and are operating legally within the city.”

Uber South Africa’s Ofentse Mokwena said they welcomed the lifting of the moratorium on new applications.

“This is a positive step for the industry and the economy as it will open 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.”

Bolt’s head of public policy for East and Southern Africa Andrew Ihsaan Gasnolar said they were looking forward to working with the City.

“This is an important first step as it will lay the foundations for the City to recognise e-hailing as a distinct and stand-alone mode of transport, and will enable the sector to grow and to both create economic opportunities for thousands of drivers who rely on e-hailing platforms to earn an income as well as to provide an alternative mode of transport for people in Cape Town,” he said.

“We continue to work closely with the City and to ensure drivers can take up the opportunity to apply for the operating licences.”

Gasnolar added that they were optimistic this move will have a positive impact on the mobility sector and enable thousands of people to access earning opportunities in the city.

“Bolt does not wish to replace existing transport models such as the minibuses but instead sees itself supporting the already existing models of transport to either be part of the first or last kilometre of the passenger journey.

“Ride-hailing is a complementary service to other modes of transport, and an important contributor to the shared mobility mix that cities like Cape Town need as we move into the future.”

The Western Cape E-hailing Association Sakhumzi Peter said he hoped their cars would not be impounded as they wait for their permits.

And he also shared that they fear the minibus industry may threaten them.

“An application of an individual will take about three months for the approval and while we wait we stand a chance of being impounded, we don’t know if we are going to be able to prove if we are really waiting for the licences.

“The taxi industry will always be threatened by e-hailing because they feel that if we get the permits we may take over but we are scared when we drop people off near the transport interchanges we may be extorted.”

Last week the South African National Taxi Council (Santaco) planned a protest to halt operations in Cape Town, with the lifting of this moratorium high on their list of grievances. This strike was called off following a meeting with the provincial and City of Cape Town leadership on Tuesday.

Santaco’s Western Cape chairperson Mandla Hermanus said: “Our concern is that current minibus taxi operators are struggling with operating licences. The same thing that is done for the e-hailing providers should be done for us as well.

“Traditionally, our ranks are not close to the entrances at the malls. E-hailing providers are able to capture commuters at the entrances.

“This clearly puts us at a disadvantage. We have also observed that the e-hailing operators are physically touting for passengers and creating ranking spaces at the malls, contrary to the way they are supposed to operate.

“We are unable to quantify the impact in monetary terms but there will be a big impact after this process.”

Weekend Argus