The heat is getting intense. Anytime soon, car-hailing companies (such as Uber, Bolt and others) in South Africa and in Nigeria’s most populated city, Lagos, may be in for a tougher set of laws which will regulate their operations.
‘‘UBER, Taxify, BOLT and others will be regulated by Government.
These amendments seek to provide for e-hailing services regulation, also to empower provinces to undertake new contracts which was absent in the principal Act.
Will explain more on this tomorrow,’’ Media Liaison to South Africa’s Minister of Transport |Mr Fix✔@MbalulaFikile announced in a short tweet.
Under South Africa’s National Land Transport Amendment Bill, which has been passed in parliament and sent to South Africa’s president for assent, drivers on car-hailing platforms like Uber and Bolt who do not have operating licences may incur a fine as much as R100 000 ($6000) for those platforms (Uber, Bolt and others).
In Nigerian, under a new set of regulations, which should have been in place from March 1, 2020 (but for some intense lobbying) drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.
In Ghana, from Uber to Bolt to Yango, drivers who rely on ride-hailing to sustain their livelihood would start paying a mandatory GHC 60 ($11) annual fees for ride-hailing platforms in the country, in addition to their cars undergoing roadworthy tests every six months.
Here Are The New Regulations In Details
South Africa
- Under Section 66A of the Amendment Bill, e-hailing services are now expressly mandated to protect consumers using their platforms. According to the new law, e-hailing or technology-enabled ride-hailing companies must — (a) have the facility to estimate fares and distances, taking into account distance and time, and must communicate the estimate to passengers in advance electronically; (b) communicate the final fare to the passenger or passengers at the conclusion of the trip electronically, and (c) provide the prescribed details of the driver of the vehicle to the passenger or passengers electronically.
- Where a person conducts a business providing an e-hailing software application, that person — (a) may not permit an operator to use that application for a vehicle for which the operator does not hold a valid operating licence or permit for the vehicle, or whose operating licence or permit has lapsed or been cancelled, and (b) must disconnect the e-hailing application immediately and keep it disconnected until a valid operating licence has been obtained for the vehicle.
- Consequently,operating an e-hailing service without the proper operating license or permit could result in a fine not exceeding R100 000 or a period of imprisonment not exceeding two years.
- The law also empowers provincial regulatory authorities in South Africa to withdraw or suspend an operating licence from an operator which has contravened the National Land Transport Act or the Roads Traffic Act.
Nigeria: Lagos
Although Nigeria as a country is still silent on regulating the activities of ride-hailing companies, Lagos, the most populated city in the country is reportedly mulling a set of local regulations targeting car-hailing companies operating within the city. As reported by local news media:
- Under the proposed new regulations, drivers on ride-hailing platforms are required to have LASDRI card and a driver badge issued by the Department of Public Transport and Commuter Services of the Ministry of Transport.
- The vehicles on such platforms must also have permits issued by the Lagos State Motor Vehicle Administration Agency and be fitted with a tag to be issued by the said department of transport.
- The new regulations will also mandate third-party operators like Uber and Bolt to pay N10 million naira ($27k) and an annual renewal fee of N5 million ($13.5k) if they have less than 1000 drivers.
- Third-party operators that have more than 1000 drivers will pay N25 million ($67.8k) licensing fee and N10 million annual renewal fee.
- Operators who directly own their cars and employ their drivers will pay only the license fee of N5 million if such operators have below 50 drivers.
- Those who have more than 50 drivers will pay N10 million for the operating license.
- Under the new regulation, the state government will also earn 10% on the fee of each trip.
The new regulation (if it ever comes into effect) is coming on the heels of the Lagos state government ban on commercial tricycles and motorcycles, popularly known as okada from operating in six local governments — Apapa, Eti-Osa, Ikeja, Lagos Island, Lagos Mainland and Surulere.
This is also followed by allegations of clamped down on Uber and Bolt drivers, over demand on hackney permits and Lagos State Drivers’ Institute license and news of introduction of government-backed e-taxi livery, Eko Cab.
Ghana
In Ghana, drivers who rely on ride-hailing to sustain their livelihood would start paying a mandatory GHC 60 ($11) annual fees for ride-hailing platforms in the country, in addition to their cars undergoing roadworthy tests every six months. Ghana’s Driver and Vehicle Licensing Authority (DVLA), which imposed the GH¢60 ($11) annual fee noted that the guidelines will cover the current ride-hailing platforms like Uber, Bolt, and Yango and will also cover companies who intend to operate ride-hailing platforms in Ghana in the future.
- The fee is being imposed as part of new guidelines introduced by the Ministry of Transport, National Road Safety Commission, and the MTTD of Ghana Police Service.
- In addition to the annual fee, owners of vehicles who use ride-hailing platforms will have to obtain a registration certificate at the Digital Transport Center at DVLA’s Headquarters in Cantonments for “verification and authentication.”
- The DVLA also stated that ride-hailing cars must undergo roadworthy examinations and certifications every six months, making it twice a year roadworthy renewal.
- Under the new guidelines, only vehicle owners can be represented by for purposes of such examinations and certifications. The representative must however go along with a duly signed Power of Attorney document as well as a valid national ID document.
- Thereafter, a special sticker will be issued to vehicles that have completed this process to be pasted “on the windscreen at all times.”
- On the other hand, drivers would have to be present at the Digital Transport Center themselves for their verification and authentication.
“Unlike in the case of the vehicle owner, the driver must be physically present for this activity…..Drivers must ensure that, at all times, they possess a valid Driver’s Licence,” Ghana’s Driver and Vehicle Licensing Authority (DVLA) noted in a statement.
- The Authority also added that companies that operate the digital transport platforms must only work with drivers who have been verified by the DVLA.
“Once you are signed on, only verified and approved vehicles and drivers must be enrolled on your platform…The DVLA data system becomes the only valid source for verifying the authenticity of a driver’s license or a vehicle’s registration. Submit quarterly reports in the form as agreed with the Authority.”
The Bottom Line
Regulating ride-hailing companies such as Uber, Bolt and others in Africa is a step in the right direction provided such regulations only serve to establish a standard framework for the operations of those companies, and not to impose excessive levies and taxes or create monopolies to discourage innovation as it presently appears to be the case in the city of Lagos, Nigeria.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer.
He could be contacted at udohrapulu@gmail.com