Page 25 - drive a2b march 2020 web

Here is how the Competition of the National Land Transport The Commission recommends
Commission recommends Act (NLTA). The NLTA also requires an overhaul of the issuing of
changing the metered taxi metered taxi vehicles to be operating licences, including the
industry, so it can better compete equipped with a sealed meter to removal of restrictions on how
with the likes of Uber. determine the payable fare. many taxis may be registered in a
specific area.
The commission said that this
REMOVAL OF AREA rigid approach prevents taxi “This would mean that operators
RESTRICTIONS FOR operators from responding to will still be required to apply for
METERED TAXIS supply and demand. It wants roadworthy permits, but their
___________________________ that sort of price regulation to operating licence applications will
The commission found that be removed from the legislation, not be denied based on supply
metered taxis are subject to area which it believes will promote and demand.”
restrictions, while the e-hailing competition and lead to lower In addition, the Commission
services operate anywhere. For fares recommends that regulators
instance, taxi operators may be increase their capacity, and
limited to one municipality, while A COMPLETE OVERHAUL finalise pending applications
e-hailing drivers in Gauteng can OF THE TAXI-LICENCE “expeditiously”.
operate between the Tshwane, REGIME
Johannesburg, and Ekurhuleni ___________________________
regions. GOVERNMENT SHOULD
The commission found big INTERVENE TO
The commission wants all area backlogs in the approval of HELP CREATE A
restrictions to be lifted, so that operating licences at various NATIONAL TAXI BODY
once a taxi service is licensed, provincial regulators for the taxi ___________________________
it can operate anywhere in the industry.
country. The commission wants
While SA law requires all licences government to assist the industry
But some areas like airports to be finalised within 60 days, in to establish a national association
should still have restrictions the City of Johannesburg alone of metered taxis.
in place to help deal with there is a backlog of nearly 7 000
congestion, it says. applications (including minibus “Metered taxi associations
taxi applications) dating back to are empowered to represent
The department of transport 2007. the interest of the industry. A
previously argued against the formalised structure for metered
removal of area restrictions, “This has led to a significant taxis will assist with consultations
arguing that it was a valuable tool proportion of e-hailing operators with the government and advance
to assist in avoiding conflict in the and metered taxi operators their interests in the industry in
industry. operating without valid operating light of the digitisation of the
licences, and thus operating market.”
NO PRICE REGULATION illegally,” says the commission.
FOR METERED TAXIS According to the report, between
___________________________ 35% and 55% of Uber drivers are
operating without a valid licence,
Currently, taxi fares are
theoretically regulated in terms compared to 70% and 95% for
Bolt.

DRIVE A2B magazine · March 2020 25