E-hailing drivers in Cape Town struggle to obtain operating licenses

E-hailing drivers in the City of Cape Town are raising concerns over the difficulties in obtaining operating licenses, a requirement that determines whether they can legally work without the risk of having their vehicles impounded.

According to Western Cape transport regulations, all e-hailing and metered taxi drivers must possess a valid operating license. However, drivers argue that the application process is flawed, leaving many without proper documentation despite their efforts to comply with the law.

E-Hailing Association Criticizes Vehicle Impoundments

The Western Cape E-hailing Association has strongly criticized the City of Cape Town’s decision to impound vehicles that are operating without licenses.

Omar Parker, a representative from the association, has called for a fairer approach to handling drivers who are yet to receive their licenses.

“We have argued for a progressive approach to be adopted when it comes to impoundment. In other words, if you are found without an operating license, the law should not immediately punish you and take your car. There should be a progressive kind of approach,” said Parker.

Parker emphasized that many drivers are not intentionally breaking the law but are stuck in a bureaucratic backlog that prevents them from obtaining the necessary permits.

Thousands of License Applications Rejected

The Western Cape Mobility Department’s Provincial Regulatory Entity (PRE) is responsible for approving operating licenses for e-hailing and metered taxi services.

Department spokesperson Muneera Allie confirmed that there has been a massive demand for these licenses, with over 14,000 applications submitted.

However, due to regulatory limits, the PRE could only approve 3,354 licenses—leaving the majority of applicants without approval.

“The Western Cape Mobility Department’s Provincial Regulatory Entity received in excess of 14,000 applications requesting authority to provide metered taxi and e-hailing services. The PRE proceeded to approve the full allowed quota of 3,354 new operating licenses on a first-come, first-served basis,” said Allie.

With the quota now reached, the City of Cape Town has announced that no further applications will be supported, effectively closing the door on thousands of drivers who still require licenses.

Impact on E-Hailing Drivers

For e-hailing drivers, this means they face the risk of impoundment every time they take a trip without a valid permit. Many have described the situation as unfair and impractical, given that the demand for services is growing, yet the number of licenses remains restricted.

The City of Cape Town’s decision to enforce strict impoundment policies has made it even more challenging for these drivers to earn a living.

One affected driver, Sipho Mthethwa, shared his frustration:

“I applied for my operating license last year, but I was told that the quota was full. Now, every day I drive, I am afraid my car will be taken away. How are we supposed to work if they don’t give us the licenses we need?”

The Call for Reform

The Western Cape E-hailing Association and other industry stakeholders are now demanding reforms in the licensing process.

Their main concerns include:

• Expanding the license quota to accommodate the growing number of drivers.

• Introducing a phased approach instead of immediate impoundments.

• Implementing a grace period for drivers waiting for licenses.

With Cape Town’s public transport system facing ongoing challenges, e-hailing services play a vital role in ensuring that commuters have access to reliable transport. However, the current licensing crisis threatens the livelihoods of drivers and could lead to increased tensions between operators and authorities.

What Happens Next?

At this stage, it remains unclear whether the City of Cape Town or the Western Cape Mobility Department will consider increasing the number of available licenses.

For now, the 3,354 approved licenses remain the official limit, and thousands of e-hailing drivers will have to continue working under the constant threat of impoundment.

Industry leaders are urging the government to find a compromise that allows drivers to continue working legally while also ensuring that transport regulations are followed.

Until a solution is reached, e-hailing drivers in Cape Town face an uncertain future, where the risk of losing their vehicles is an everyday reality.