South African e-hailing drivers threaten mass action over unjust impoundment of vehicles

Ejike Kanife
There has been an explosion of unlicensed e-hailing operators across the country
Drivers shutdown Uber and Bolt apps in KwaZulu-Natal over safety, commission and promos

Uber and Bolt drivers in South Africa, under the aegis of the National E-Hailing Federation of South Africa (NEFSA), have threatened a mass action nationwide over several vices by the government which include unfair impoundment of e-hailing vehicles and excessive fines imposed on drivers who are yet to be licensed as operators.

According to a statement signed by the federation’s spokesperson, Tella Masakale, and seen by Technext, there has been an explosion of unlicensed e-hailing operators across the country. This explosion was caused by corruption in government offices responsible for licensing, and their reluctance to implement the provisions of the National Land Transport Act (NLTA) as amended and its related regulations.

This has led to a severe delay in the licensing process, However, the same authorities have resorted to impounding vehicles, including those belonging to drivers who have applied for operational licenses, and imposing excessive fines on them.

The National E-Hailing Federation of South Africa (NEFSA), representing e-hailing organizations from seven frustrated provinces with others pending affiliation, unequivocally stands in solidarity with all actions against unfair impoundments, excessive fines, and the gross inefficiency of the government in resolving and implementing the National Land Transport Act (NLTA) as amended and its related regulations,” the statement reads.

South African e-hailing drivers threaten mass action over unjust impoundment of vehicles
NEFSA National Convener

The South African e-hailing licence for drivers

The South African transportation laws provide that e-hailing drivers obtain operating licences However, a 2020 report by South Africa’s Competition Commission found that approximately 79 per cent of e-hailing operators in the country were operating without valid operating licenses. This highlights the challenges faced by the industry regarding the issuance of operating licenses.

This is despite the fact that applications for operating licences have continued to surge despite the imposition of various moratoria on new applications leading to a freeze on new operating licenses to prevent market saturation.

The increased demand and intermittent bans on license issuance led to several protests, particularly in the Cape Metro-pole region. This forced the Western Cape Government to announce the availability of 2,643 new operating licenses in 2023. However, following the deluge of applications, the government imposed another freeze on new applications in 2024 with the excuse of clearing the backlog.

South African e-hailing drivers threaten mass action over unjust impoundment of vehicles

The e-hailing drivers federation claims this is the same story nationwide. The federation accuses the government of still impounding unlicensed vehicles and imposing hefty fines on drivers, even though the government remains the major reason why they have been unlicensed.

Furthermore, many applicants have reported receiving generic rejection messages without detailed explanations as to why they were rejected. This lack of transparency has discouraged many operators from applying for permits due to negative publicity and stigma surrounding the process.

This reality has led to frustration among drivers, forcing them to believe the government is weaponising the system to continue making money off impounded vehicles.

Impoundments continue unabated to feed the coffers of the City. The same trend has become evident in other provinces… The weaponizing of a system fraught with inefficiency and institutionalized corruption. It is abundantly clear that the entire process of granting operating licenses and the resultant impoundments have been weaponized against vulnerable operators/drivers nationally,” the statement reads.

Uber, Bolt, and others accused of exploiting the situation

The drivers also accused ride-hailing apps like Uber and Bolt of exploiting the licensing situation to pad up their share of drivers. The federation said despite the inability of the government to license drivers, the app companies have continued to onboard new drivers regardless of whether they were permitted by law to operate.

The drivers said this is only possible because the government has allowed it in its tendency to look away from the infractions of the app companies.

This trend continues while app companies were allowed by the government to flood their platforms with operators who are not fully compliant just for app companies to retain their market shares in a highly competitive and growing market overshadowed by unfair competition that has impacted negatively driver earnings,” the statement reads.

The federation thus wonders why the law has only consistently been enforced on operators with impunity through impoundments whilst app companies are allowed to operate at will, using operators without operating licenses.

The drivers’ federation argued that the government’s failure to implement the NLTA and its regulations to its full extent has not only hindered industry growth, it has also exposed hardworking South Africans to exploitation by unregulated, internationally owned transport app companies. These companies, it says, continue to oppress local operators, evade taxes, and drain the economy while government officials turn a blind eye—either through sheer incompetence or collusion.

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Uber and Bolt

The drivers are therefore demanding the immediate issuance of operating licenses to meet the demand of legitimate e-hailing operators. They are also demanding an end to unfair impoundments and excessive fines, which serve only to cripple the livelihoods of compliant operators. Furthermore, they want swift action against corruption within municipal transport offices that delay permits while non-compliant operators thrive.

The drivers are also calling for the regulation of international transport app companies like Uber and Bolt to prevent further economic exploitation of South African workers. Finally, they want a full and fair implementation of the NLTA, ensuring formalization, empowerment, and sustainable growth within the e-hailing sector.

Should the government fail to take urgent action to address our concerns, we will be left with no choice but to escalate our resistance and initiate a national protracted programme of mass action to bring sanity to the industry. The government cannot continue to ignore the struggles of thousands of operators and disadvantaged non-compliant operators who provide an essential service to millions of South Africans. The time for action is now,” the statement concludes.

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