The Western Cape has officially reached its yearly cap for operating licences for metered taxis and e-hailing services such as Uber and Bolt, having received an overwhelming 14,000 applications. Consequently, no further applications will be supported, according to a report by Eyewitness News (EWN).

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Muneera Allie, a representative of the Western Cape Mobility Department, stated that the province had set a quota of approximately 3,300 new operating licences this year, allocated on a first-come, first-served basis. Of the total applications submitted, 3,354 were approved—the maximum allowed under the quota.

“Since the quota has been filled, the City of Cape Town has announced that no additional operating licence applications will be entertained,” Allie explained.

Regulatory Requirements and Consequences

In accordance with the National Land Traffic Act, anyone intending to transport passengers for profit—such as taxi and e-hailing drivers—must hold a valid operating licence. Those who fail to comply risk fines and vehicle impoundments if caught transporting passengers without the required documentation.

Allie also mentioned that while the city will continue to review the demand for additional metered taxi and e-hailing licences periodically, any new issuances must align with the sustainable growth of the public transport network. This approach ensures that infrastructure capacity is taken into account before approving further applications.

Although applications are still being accepted, applicants have been informed that licences will not be issued until further approvals are granted.

Uber and Bolt Industry Backlash

The Western Cape E-hailing Association has raised concerns regarding the government’s handling of the licensing process. According to general secretary Omar Parker, many e-hailing drivers remain unable to work due to delays in permit issuance, despite following the required procedures. Meanwhile, vehicle impoundments continue, adding to the frustration of operators.

“The city is generating significant revenue from this process, yet permits are not being released,” Parker stated. “They claim they’ve reached capacity, but they still accept applications while simultaneously impounding vehicles.”

The association has called for a more lenient approach to enforcement. “We believe impoundment should not be an immediate penalty for those found without a valid licence. A more progressive approach should be considered,” Parker added.

A National Concern

The issue in the Western Cape mirrors recent events in Gauteng, where authorities faced a severe backlog in processing e-hailing licences. Towards the end of 2024, the Tshwane Metro Police Department impounded numerous vehicles due to a lack of proper documentation. However, many drivers were unable to obtain their licences because the Gauteng Department of Roads and Transport had accumulated a backlog of 21,000 applications, of which only 9,000 had been processed.

This prompted legal action from e-hailing operators. One such case involved the company Wanatu, which successfully obtained an urgent interdict against the Tshwane Metro Police Department to halt impoundments until licensing processes resumed. Additionally, Wanatu took legal steps against the Gauteng Department of Roads and Transport to push for the completion of pending applications.

As similar challenges arise in the Western Cape, e-hailing drivers and industry representatives continue to demand a more efficient and fair licensing system that prevents unnecessary disruptions to their livelihoods.