NEFSA Condemns Illicit E-hailing License Sales in Western Cape

The National e-hailing Federation of South Africa (NEFSA) has strongly condemned the illicit sale of operating licenses for e-hailing drivers, particularly in the Western Cape region. This issue came to light following the recent approval of 1,100 new operating licenses by the Western Cape Provincial Regulatory Entity (PRE), bringing the total number of approved e-hailing drivers in the province to 5,494. These licenses are statutorily required for drivers to operate e-hailing and metered taxi services.

NEFSA's National Convener, Comrade Elijah Lawrence Lekgowane, revealed that certain consultants have exploited the licensing process, selling licenses for exorbitant sums ranging from R30,000 to R40,000. This practice has been described as irregular and unlawful, undermining the system and making it difficult for many drivers to secure the necessary licenses. Lekgowane expressed concern that the situation remains unresolved, with those exploiting the system not being held accountable.

Lekgowane further disclosed that some consultants, who are also members of the City’s Intermodal Transport Planning Committee, have given themselves an unfair advantage. They charge high administration fees, exploiting vulnerable drivers who are already burdened with financial struggles. The statutory fee for applying for an operating license is approximately R600, but consultants are charging additional amounts ranging from R1,500 to R2,500 for their services, effectively becoming unofficial and unregulated outlets for obtaining licenses.

Comrade Omar Parker, the Secretary of the Western Cape e-hailing Association (WCEA) and the National Coordinator of NEFSA, provided more details on the consultancy system. He noted that some consultants have multiple licenses, which they sell publicly for between R30,000 and R40,000. Parker raised suspicions about the fairness of the process, suggesting that there might be collusion between consultants and those with easy access to the intake office. He cited an instance where a consultant publicly boasted about having 14 permits and selling them for R30,000 each.

Parker also highlighted a conflict of interest, as some of these consultants are members of the Western Cape PRE intermodal planning committee. This allows them to prioritize their own applications, while those who apply independently are not considered. Out of the 1,100 new operating licenses, 260 are reserved for renewals, leaving only 840 for new applicants.

NEFSA has also accused e-hailing companies, particularly Uber, of onboarding unlicensed drivers. This has led to the impounding of cars belonging to many union members. The union chief blamed the government for failing to enforce the law on drivers’ onboarding and for defending Uber's unlawful practices. The MEC of Mobility in the Western Cape defended Uber, stating that their practices are not unlawful and are common internationally.

NEFSA further condemned the monopoly that app companies have over data and algorithmic management. Local government authorities, including the City of Cape, have struggled to obtain necessary data from these companies, while impoundments have been used against struggling drivers. This situation highlights the broader issues of regulatory oversight and the need for transparency in the e-hailing industry.