/ 21 August 2018

To save jobs, Uber takes on government over law amendments

Uber has borne the wrath of its counterparts and lawmakers in various parts of the world by legally escaping much of the red-tape and institutional costs that traditional taxi companies are required to shoulder.
Uber has suggested that the ministry delay the implementation of clause 66 (7) until the current challenges are resolved. (Reuters)

Ride-hailing firm Uber believes that the transport ministry’s amendments to the National Land Transport Act (NLTA) 2009 could mean the loss of 9 000 job opportunities and negatively impact 27 000 people in the e-hailing services.

The ministry has proposed that clause 66 (7) where e-hailing operators would deny drivers access to their system if they lack an operating licence — a metered taxi operating license is already required by Uber in order for a driver to use the app, however other e-hailing services’ drivers operate with a pending license.

According to the proposal, if an e-hailing company refuses to comply, it and the driver will be liable to pay a R100 000 fine. The driver would also be subject to a two-year prison term.

Uber has over 12 000 active drivers in South Africa, and it believes that this proposal would impact the welfare of its drivers and drivers currently facing delays in receiving their permits from local authorities.

“The permit-issuing systems and processes of many of South Africa’s major municipalities are flawed and this has resulted in massive application backlogs and delays of up to 18 months in the issuing of operating licences,” Alon Lits, general manager for Uber in Sub-Saharan Africa said.

READ MORE: Uber: It’s drivers vs the corporate machine

Uber has suggested that the ministry delay the implementation of clause 66 (7) until the current challenges are resolved.

It has also proposed that the ministry includes a clause in the amendments that allows drivers to operate legally and without an issued license if the drivers have submitted “fully compliant applications and are in the possession of receipts”.

“We estimate that if the backlog and delays around the current system for issuing operating licenses are not resolved before this clause comes into effect, there would be a loss of approximately 9 000 direct job opportunities and consequent negative impact on 27 000 people whose livelihoods depend on the e-hailing industry.”

Uber has also asked the ministry to reconsider how it defines locations or zones in which e-hailing vehicles are allowed to operate.

According to Uber, this provision did not take into consideration the changes in how metered taxis and e-hailing vehicles operate today.

“By reconsidering its proposed amendments to the Act in these ways, the Transport Ministry has the opportunity to demonstrate that it is fully committed to building a fair, equitable and well-run transport operating environment,” Lits concludes, “one that delivers value to all sectors of South African society and contributes to the growth of the country’s economy.”