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Uber takes issue with proposed legislation

Staff Writer
By Staff Writer, ITWeb
Johannesburg, 21 Aug 2018
Uber is asking the National Transport Ministry to consider delaying proposed changes to legislation.
Uber is asking the National Transport Ministry to consider delaying proposed changes to legislation.

Ride e-hailing taxi service Uber has voiced its concerns about some of the clauses in the proposed amendments to the National Land Transport Act 2009.

It has specifically take issue with regards to ride-sharing companies being fined heavily for their drivers not having hard-to-obtain permits.

While the company says it supports the process of updating the legislation to reflect the profound shifts technology is driving across all sectors and industries, including transportation, the company is asking the National Transport Ministry to address certain issues.

The main concern is with clause 66(7) of the proposed amendments, which instructs e-hailing operators to deny access to their systems to any driver who doesn't have the necessary operating licence.

Failure to do this can result in the ride-sharing company having to pay a fine of up to R100 000. Drivers are also subject to the fine, as well as two years imprisonment.

Uber says its drivers are facing massive delays in getting their permits from their local authority, or are simply not able to do so.

Uber says this is affecting all cities in SA where it operates: Johannesburg, Pretoria, Cape Town, Durban and Port Elizabeth.

This has been a particular issue in Cape Town. GroundUp reported in June that the City of Cape Town is not issuing licences to Uber drivers fast enough, resulting in a backlog of applications and many drivers being forced to drive around without an operating licence.

"The permit-issuing systems and processes of many of SA'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," says Alon Lits, GM for Uber in Sub-Saharan Africa.

Uber currently has over 12 000 active drivers in SA.

"We estimate that if the backlog and delays around the current system for issuing operating licences 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 says the majority of its drivers have applied for their operating licences, but most have not received these permits due to lengthy delays by the municipalities.

"In fact, in some cities, the municipalities have simply stopped issuing operating licences to e-hailing drivers altogether," says Uber.

Therefore, the company has proposed that the implementation of this clause, as well as any sanctions against drivers, are delayed until the current challenges being experienced by public transport operators applying for operating licences are resolved.

Alternatively, Uber has requested that the transport minister includes a clause in the amendments that allows drivers to operate legally if they have submitted fully compliant applications and are in possession of receipts, but where the operating licence has not yet been issued by the municipality.

There are two other clauses Uber has expressed concern about.

The first is a requirement that all e-hailing vehicles involved in transporting passengers will need to have special markings to identify them. Lits says the company's drivers are still experiencing high levels of intimidation and Uber is concerned that having identification markers on vehicles will increase targeted attacks.

The second pertains to licensing authorities that have the power to define the locations or zones in which e-hailing vehicles are allowed to operate.

"This provision does not take into consideration the changes in the ways in which both metered taxis and e-hailing vehicles operate today; the legislation needs to recognise and reflect these changes rather than limiting the ability of drivers to pursue fare opportunities that are closest to their immediate location, wherever that may be," says Uber.

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