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Cape Town - Plans are in place to introduce an 'e-hailing' by-law in Cape Town amid the controversy over the legality of internet ride-sharing service Uber in that city, according to Western Cape Premier Helen Zille.
Over 200 Uber cars have been impounded by traffic officials in Cape Town this year because partner drivers of the service don't have metered taxi permits.
Uber has said its drivers have applied for the permits but not a single licence has been awarded this year from the Western Cape provincial government.
Subsequently, Helen Zille has waded into the debate and its complexities in her 'Inside Government' newsletter on Monday.
"Uber's e-hailing service 'does not fall into any of the categories of the National Land Transport Act', as an official explained to me this week. It is also not provided for in the Integrated Transport Plan. And any process to regularise the e-hailing service must follow the requirements of the Promotion of Administrative Justice Act," wrote Zille.
"When it comes to public transport operators, it is not so simple. Government cannot evade responsibility for safety, which includes roadworthiness, passenger insurance and third parties. If, for example, the vehicle does not have a valid operating licence, passengers cannot claim from the Road Accident Fund in the event of a crash.
"This situation creates a crisis for government. Officials must act within the law. But the law doesn’t envisage or cater for e-hailing services. The result is government paralysis," Zille said.
Zille further explained other complexities regarding regulation and awarding licences.
"Moreover, regulation of the taxi industry in South Africa has proved to be one of the examples of market failure. Competition is more often resolved by violence than consumer choice. There have been 15 murders (and many more injuries) in the past year relating to taxi conflicts in an overtraded industry. And the current situation of overtrading can only be resolved by market displacement, which usually results in escalating violence. Furthermore, the law prohibits the issuing of additional licences in an overtraded market," wrote Zille.
Zille went on to say that national and local government are, however, starting to put together an e-hailing law and by-law.
"The City has also started the process of compiling a by-law to create a legal framework for the e-hailing industry, while the National Government has started the process of amending Section 66 of the National Land Transport Act, to make e-hailing taxis a sub-category of metered taxis," said Zille.
Zille also said that on Thursday July 9 there will be a meeting of the Provincial Regulating Entity, "where all the verified Uber licence applications supported by the City will be considered".
In her newsletter, Zille also praised the Uber service.
"It has proved to be a 'cool', safe, cheap and efficient service. Young people love it, and many parents (including me) sleep better at night knowing that their kids will 'Uber home' rather than take risks after a night out," Zille wrote.
Regulatory conundrum
Rival taxi bodies in India, France and South Africa have protested that Uber undercuts them while remaining exempt from regulations such as insurance, driver education and accountability.
Uber South Africa, though, has said that it aims to provide consumer choice.
"Uber is having a positive impact on Cape Town by creating more economic opportunity for drivers, providing more choice for consumers, reducing congestion and drinking and driving. Importantly, Uber brings huge benefits to the small operator looking to enter the market, empowering them through technology to grow a small business in a way that they couldn't before," the company said.
In light of its regulatory problems in Cape Town, Uber last week launched an online petition that drummed up support for the service and which notched up over 13 000 signatures.
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