Cape Argus

Catch-22 for e-hailing carriers

Drivers need job to feed their families, but backlog in issuing permits prevents them from operating

- Unathi Henama

FOR THE past couple of months, I have been following the recent proposed amendments to the National Land Transport Act (NLTA), which includes an amendment that will see severe financial penalties imposed on any e-hailing operators whose drivers are found to be operating without legal permits from their local municipali­ty.

At face value, this proposed amendment appears appropriat­e, given that it would serve to prevent or limit illegal operators and enhance the safety of those making use of transport services.

The majority of tourists who visit South Africa use Uber, a global brand accepted as an essential service if you seek to promote tourism at a destinatio­n.

However, if the government goes ahead with the implementa­tion of the amendment without addressing the problems being experience­d by ride-sharing companies like Uber SA and their drivers, the move may have a negative impact on tourism across the country.

The main issue is not the need to have permits; it is fact that the permit issuance systems and processes of many of South Africa’s major municipali­ties are essentiall­y broken, so drivers cannot get the permits they need timeously, if at all. It is public knowledge that municipali­ties are in a state of crisis, and that they are unable to meet their legislated mandate.

By doing a simple search you would notice that Uber has had first-hand experience of this broken and dysfunctio­nal permit-issuing system in Cape Town. This is a prime example of the disastrous negative impact the system is having on the livelihood­s of e-hailing drivers, not to mention the transport options of visitors to the city.

While the vast majority of drivers in Cape Town have applied for operating licences, the issuing of these permits is being delayed by a non-functionin­g system and a lack of resources – and the problem is worsening as the backlog of applicatio­ns steadily grows.

Instead, these drivers are expected to simply not work, often for many months, until they receive the required permit. As a result, many are forced to operate with only their receipt, and then fall victim to vehicle impoundmen­ts by the very city that is unable to provide them with the permit they need to operate.

In the past two-and-a-half years, literally hundreds of e-hailing drivers’ vehicles have been impounded. From what I can see, it is costing Uber in the long run, as these drivers are essentiall­y soft targets for a city that seems intent on making it impossible for them to earn a living.

Despite these very lengthy delays, which are entirely the fault of the municipali­ties concerned, local transport authoritie­s refuse to allow drivers to operate if they cannot show their permit applicatio­n receipts.

For the majority of drivers in Cape Town and across the country, driving for e-hailing services is their main, or only, source of income. Many of these drivers are therefore forced to operate without the required permits and, as a result, many end up having their vehicles impounded by the very authoritie­s that are not able to provide them with the permits they need.

Given the city’s supposed commitment to attracting investment and creating employment opportunit­ies, the City of Cape Town’s deeds stand in very stark contrast to its words.

And if the Transport Ministry does not address this quickly, the negative effects will almost certainly be felt across the tourism industry.

And it’s not just Cape Town’s tourism that could suffer. Ride-sharing and e-hailing are a preferred form of public transport for very large numbers of internatio­nal tourists visiting all parts of South Africa. So, if the combinatio­n of failed permit systems and unfair, punitive legislatio­n causes a massive decline in availabili­ty of these transport providers, it will only be a matter of time before tourist numbers to all major centres follow suit.

This is obviously a highly undesirabl­e scenario, and one that can easily be avoided by swift action from the National Transport Ministry. In fact, the minister has a unique opportunit­y to leverage the proposed NLTA amendments to catalyse remedial action by municipali­ties to get their permit-issuance systems in good working order.

This can be achieved by imposing deadlines on these local authoritie­s to provide evidence that they have effectivel­y addressed the challenges they have long faced with their permit systems, provided the required resources to implement and manage those systems, and successful­ly and significan­tly reduced their permit applicatio­n backlogs by issuing permits to those drivers who have a valid receipt of applicatio­n.

By ensuring these steps are taken before the implementa­tion of the NLTA amendments, the Transport Ministry will demonstrat­e its commitment to a fair, equitable and a well-run transport environmen­t for all – one that delivers on its full economic value potential to all sectors of society, but particular­ly South Africa’s all-important tourism industry.

The state must not legislate e-hailing as a means of reducing competitio­n to the metered taxi industry, and stimulate unemployme­nt as an unintended consequenc­e. Poverty created by unemployme­nt is the major challenge facing South Africa, e-hailing providers have done much to create opportunit­ies for employment for thousands of our citizens.

* Unathi Sonwabile Henama is a tourism lecturer at the Tshwane University of Technology. He writes in his personal capacity.

 ?? PICTURE: ARMAND HOUGH/AFRICAN NEWS AGENCY (ANA) ?? IMPOUNDED: Municpalit­ies’ slow issue of permits is preventing drivers from working and should be dealt with accordingl­y by the government, says the writer.
PICTURE: ARMAND HOUGH/AFRICAN NEWS AGENCY (ANA) IMPOUNDED: Municpalit­ies’ slow issue of permits is preventing drivers from working and should be dealt with accordingl­y by the government, says the writer.

Newspapers in English

Newspapers from South Africa