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The metered-taxi industry, which includes drivers operating from a rank, base or an e-hailing platform, has grown significantly since 2014 when applications for new operating licences were accepted again.

During this time, new technology has emerged, making this type of service very attractive and convenient for commuters. Thus, we have seen thousands of operators or drivers joining e-hailing platforms as cellphone applications made it easier for them to respond to passenger demand and needs.

However, it became evident over the past 18 months or so, that an over-supply of metered-taxis is threatening the sustainability of the industry in Cape Town.

The situation has become dire due to Covid-19. We have noted a significant drop in passenger demand since the pandemic emerged in South Africa in March 2020:

• tourist numbers have dropped significantly
• many commuters who made use of metered-taxi services are now working from home, or prefer their private vehicles; and
• fewer people are travelling after hours to bars and restaurants and places of entertainment, given the health and safety concerns related to the pandemic, and the restrictions imposed by the National Government over the past 11 months

‘It is important to note that the metered-taxi industry is also concerned about an over-supply of metered-taxis in Cape Town.

‘The industry tabled a request for a moratorium on new applications for operating licences at the Western Cape Provincial Transport Lekgotla on 15 October 2020; and also did so at the National Taxi Lekgotla in Boksburg on 29 and 30 October 2020,’ said the City’s Mayoral Committee Member for Transport, Alderman Felicity Purchase.

In 2017, at the Competition Commission’s inquiry into land-based public passenger transport, traditional metered-taxi operators, as well as e-hailing operators, submitted at hearings held in Cape Town that the number of operating licences needed to be limited so that supply and demand are aligned, subject to a reasonable waiting time for passengers and reasonable working hours for the drivers.

Earlier today, the City, as the Planning Authority for transport in Cape Town, has informed the Western Cape Provincial Regulatory Entity (PRE) that the City is imposing a moratorium on new applications for metered-taxi operating licences.

‘The moratorium will not prevent new e-hailing platform providers to establish businesses in Cape Town. Metered-taxi drivers who are already in possession of operating licences can sign up or join any existing or new e-hailing platforms or subscribe and operate on multiple platforms, if they so wish,’ said Alderman Purchase.

Also, metered-taxi operators, who are in possession of valid operating licence(s) will not be affected by the moratorium.

The moratorium will be in effect until 31 December 2023.

The moratorium will also allow the City of Cape Town to:

• undertake an inventory of all metered-taxi operating licences in the system;
• develop a method to determine the demand for metered-taxi services which will govern support for new metered-taxi operating licences in future;
• review and update relevant by-laws, policies, statutory plans and strategies related to the metered-taxi industry; and
• establish a metered-taxi inter-modal planning subcommittee (IPC) as an umbrella body or forum for engagement with the industry.

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