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SME ride-hailing drivers at risk as licence deadline looms

by Afhulufhedzeaho Olga Mulaudzi
February 27, 2026
in Business, Top story
Reading Time: 4 mins read
A A
Small Uber and Bolt drivers face income and safety risks as the e-hailing registration deadline approaches. Photo: researchictafrica.net

Small Uber and Bolt drivers face income and safety risks as the e-hailing registration deadline approaches. Photo: researchictafrica.net

Thousands of small ride-hailing operators in South Africa could face business disruption as a key regulatory deadline approaches next month.

Under the National Land Transport Amendment Act, which came into effect in September 2025, all e-hailing platforms must register with the National Public Transport Regulator (NPTR). Companies were given a 180-day transition period to comply, which ends on 11 March 2026. Platforms that fail to complete the process could be declared illegal and prevented from operating.

This directly affects drivers using platforms such as Uber and Bolt, many of whom operate as small independent businesses.

Uber and Bolt drivers are not employees. They are considered independent contractors, meaning they work for themselves. They use the app to access customers but are responsible for their own vehicles, fuel, maintenance, and daily expenses. In practice, many operate as micro-enterprises supporting families.

Government warning on compliance and penalties

Department of Transport spokesperson Collen Msibi previously warned that platforms that fail to convert in time would automatically become illegal operators.

“Without a registered app, no operator will be able to convert to an e-hailing operating licence or apply for a new e-hailing operating licence,” Msibi said. He explained that providers not registered with the NPTR would not appear in provincial databases, which would prevent drivers from legally applying for operating licences.

Ride-Hailing companies respond to regulations

Bolt spokesperson Romaana Sutton said the company welcomes the formal regulation of the sector.

“Bolt is fully committed to aligning with the regulatory framework and collaborating closely with all spheres of government and relevant stakeholders,” Sutton said, adding that the company remains focused on safety and accountability.

Uber also confirmed that it has submitted its application for registration with the NPTR.

“Our focus remains on supporting a smooth and practical transition that protects both rider safety and driver livelihoods,” Uber said. However, neither company has confirmed whether it will complete the process before the deadline.

Voices of small operators on the ground

Siphosethu Nxumalo, an Uber driver and owner of a single-car operation in Soshanguve, said the deadline could make or break his business.

“I depend on Uber for my entire income. I pay for my car instalments, fuel, and support my family with this money. If Uber cannot operate legally after 11 March, I could lose my job overnight,” Nxumalo said.

“It’s not just about me, there are young drivers who rely on this work to feed their families. Completing the registration is complicated and takes time, but without it, our livelihoods are at risk.”

Phathutshedzo Mudau, a Bolt operator in Danville who manages two vehicles and employs one assistant, said the situation is causing real stress for small operators.

“We run this as a small business. Every day we are on the road, earning enough to pay our bills and feed our families. If the platforms are shut down because they haven’t registered, it’s not just lost income, it’s potentially losing the business we built from scratch,” Mudau said.

Expert perspective and SME impact

Mathetha Mokonyama from the Council for Scientific and Industrial Research (CSIR) said compliance would require significant effort from both government and operators.

“The risk of non-compliance is very high because of these regulations,” Mokonyama said, noting that platforms would need substantial resources to meet all requirements.

The new rules require proper licensing, vehicle branding, installation of panic buttons and jurisdiction controls. Failure to comply could result in fines of up to R100,000 or imprisonment of up to two years.

For small operators who depend on daily trips to cover car instalments, fuel, and household expenses, the uncertainty creates financial anxiety. Recent violent incidents involving ride-hailing drivers have also raised safety concerns, reinforcing the government’s argument that stricter regulation is necessary.

With the 11 March deadline approaching, the future of thousands of small e-hailing businesses now depends on whether platforms complete registration in time.

How drivers and SMEs can register

E-hailing drivers and small operators should begin the registration process through the National Public Transport Regulator website. Platforms such as Uber and Bolt have guidance and support for drivers navigating compliance.

Useful links

https://www.transport.gov.za/?page_id=2357

https://www.uber.com/za/en/drive/

https://bolt.eu/en-za/driver/

 

Tags: Independent contractor driversNational Public Transport RegulatorRide-hailing compliance deadlineSMEs in ride-hailingSouth Africa e-hailing regulationUber and Bolt drivers
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Afhulufhedzeaho Olga Mulaudzi

Afhulufhedzeaho Olga Mulaudzi

Afhulufhedzeaho Olga Mulaudzi is a qualified journalist at Vutivi Business News, reporting on small businesses, agriculture, and township entrepreneurship. With a background in radio, print, and digital media, she is passionate about amplifying overlooked voices and telling stories that inform, inspire, and drive meaningful change in communities across South Africa.

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