Official Update: E-Hailing Services Classified as an ‘Additional Transport Option’ for the Public
Pretoria – The Department of Transport has revealed changes to the relevant legislation, permitting e-hailing services to operate as an “additional transport option” for the public.
For years, app-based e-hailing services encountered opposition from metered taxi operators who argued that these services were functioning unlawfully.
However, on Friday, 12 September 2025, the department issued a statement confirming that it had “gazetted the long-awaited National Land Transport Amendment Act and the Amended Regulations for implementation.”
The department specified that the Act introduces a new service category, namely the e-hailing service, as an additional transport option for travelers.
“It aims to officially recognize and legitimize the new service type that has been deemed illegal by other operators on the streets,” the statement noted.
“The Act requires public transport operators to obtain operating licenses, ensuring that services are sanctioned and secure.
“It also sets regulations for e-hailing services to maintain quality and safety standards.”
The department mentioned that each vehicle must be branded or display a sign identifying it as an e-hailing vehicle.
“Commuters should verify that vehicle and driver information is accessible in the app; if it’s not, they should be cautious,” the department advised.
“App developers who permit users to utilize their applications without an Operating License may face fines of up to R100,000 or a maximum of two years imprisonment.
“All applications must also be registered with the regulators.”
The Act mandates the installation of panic buttons in e-hailing vehicles to enhance commuter safety and facilitate quick emergency responses.
Vehicle owners are charged with ensuring these installations are completed.
The panic button will aid in crime detection and enable rapid action by law enforcement or tracking agencies.
Commuters must also confirm compliance for both the vehicle and driver. Drivers are required to have the necessary documentation for compliance.
The Provincial Regulatory Entity (PRE) offices will oversee compliance during the review of applications before issuing Operating Licenses to drivers.
The department indicated that e-hailing operators must pay a standard application fee when applying for operating licenses.
Other operational costs are outside the scope of the Department of Transport.
App companies are required to register and comply with relevant corporate regulations in South Africa under the Department of Trade, Industry and Competition, and the South African Revenue Services, which may entail additional costs.
The department announced it will host workshops to distribute this information to all operators and officials nationwide starting next week.