New law will be a boon for e-hailing companies
● The ride-hailing industry is waiting for landmark legislation that recognises it as a sector distinct from other private transport services to be signed into law.
Bolt’s regional senior public policy manager, Weyinmi Aghadiuno, said the National Land Transport Amendment Bill, which recognises e-hailing services in South African cities, is critical to allowing such platforms to operate uninhibited. Once it is law, challenges such as licensing and other municipal bylaws hindering their operations will be ironed out.
“The law will give recognition to the ehailing sector. Because where we are right now is on borrowed regulation; we are likened to taxi services. All the legislation that governs the sector is borrowed from existing taxi laws,” Aghadiuno said in an interview.
The legislation was first introduced in 2016, but President Cyril Ramaphosa sent it back to parliament in 2021, expressing reservations about its constitutionality. In the main, he was concerned that the bill usurped the powers of municipalities and gave them to the national government and provinces — which is against the constitution.
The bill was revised and passed by parliament on December 7.
“We’ve had the opportunity to attend different sessions to share our proposed amendments throughout the writing of the bill,” Aghadiuno said. “So we have been able to share and give understanding to the department of transport on what the verticals are like, what the e-hailing sector is like, our mode of operations and everything has been explained. This will capture the essence of the gig and e-hailing economies.”
Bolt last year announced plans to invest €500m (about R10bn) over the next two years to add 300,000 drivers and couriers throughout Africa.
The passing of the bill will help the tech company capitalise on its new Bolt Lite offering which it has been piloting in Johannesburg and plans to expand to other South African cities. Bolt Lite offers cheap lastmile, short-distance rides to cash-strapped passengers using the compact Bajaj Qute vehicle.
Bolt Lite provides drivers with an opportunity to tap into the high demand for lowcost rides. The Bajaj is relatively cheap to fuel and maintain.
Aghadiuno said drivers had the added benefit of generating advertising revenue through the branding option added to Bolt Lite.
“Bolt Lite is likened to an economic category on our platform. The whole idea was to reach new markets and expand our user base by offering more affordable options. We wanted to expand and we wanted to do more,” she said.
“So it fills the gap in the e-hailing market, catering to last-mile and first-mile transport needs. For the drivers, they are constantly seeking new ways to increase their earnings, and launching new categories like Bolt Lite is one of those options, especially with the added advantage of branding so they can earn more.”
Asked if the Bajaj was safe and approved for South African roads, Aghadiuno said “the president himself” famously took a ride in the vehicle during a public engagement and endorsed it. The Bajaj carries one passenger at a time over short distances.
“The president has been in it. He’s been driven [around] in the vehicle, so it passes and it qualifies as a vehicle. So, regarding the transition, it has not been treated differently than a regular vehicle. However, I will not say we have not experienced some challenges. Challenges we face would be with licensing of the Bolt Lite category in certain parts of the country, such as Gauteng.”
Aghadiuno said the company was pleased with the initial response in the Johannesburg pilot and ride volumes have been steadily increasing. “Volumes have been growing consistently by 10% each month and we are confident that Bolt Lite will continue to grow in popularity as more riders become aware of the affordable transport option it provides.”
Approached for an update on the status of the bill, presidency spokesperson Vincent Magwenya said it was still being processed.