The City of Cape Town has informed the Western Cape Provincial Regulatory Entity (PRE) that the moratorium on new applications for metered-taxi operating licences can be lifted. It is anticipated that the PRE will soon announce how and when operators can apply for new metered-taxi operating licences. The PRE is responsible for receiving applications and the issuing of public transport operating licences. Read more below:

‘I welcome the end of this moratorium, it is good news for the market, and good news for the e-hailing industry, which supports thousands of entrepreneurs and their families. On taking office, it was a focus of mine to end the moratorium well ahead of the initial December 2023 timeframe. The City’s work has included completing an inventory of all metered-taxi operating licences in the system; developing a method of determining demand for metered taxi-services; and establishing a forum for engagement with the industry,’ said Mayor Geordin Hill-Lewis.

‘I made a commitment last year that the City would conclude its demand-and-supply method for metered-taxi services, including those operators making use of e-hailing platforms, by the first quarter of 2023.

‘I’m delighted to announce that we have met this deadline with two months to spare. We have informed the PRE that the moratorium on applications for new operating licences for metered-taxi services is now lifted. It is now for the PRE to announce the next steps, namely the process to be followed by those wanting to apply for metered-taxi operating licences; and the documents needed to do so,’ said the City’s Mayoral Committee Member for Urban Mobility, Councillor Rob Quintas.

The City’s Urban Mobility Directorate conducted a survey in the latter part of 2022 to determine the demand for and supply of metered-taxi services across the City. Customers and operators participated, and e-hailing platforms assisted the City with additional information. This method determines the number of operating licences that can be supported based on the current demand for these services from the public.

The National Land Transport Act requires that the City follows a clear and transparent process to decide on supporting new operating licences to be issued by the PRE. This supply-and-demand method has now been established and will guide the City going forward, until such time as legislative changes allow for a more market-based determination.

The moratorium was imposed by the PRE in February 2021, on request of the City of Cape Town as the Planning Authority for Transport in Cape Town. This followed the industry tabling several requests for a moratorium on new applications for operating licences.

‘I believe the lifting of the moratorium will be welcomed by the men and women who want to provide public transport services with metered-taxis and through e-hailing. A healthy metered-taxi industry has the ability to sustain thousands of households with an income. We are proud that we can support these opportunities through the PRE, while also ensuring the long-term sustainability of the industry in the interest of operators, and all of the Capetonians and visitors making use of their services,’ said Councillor Quintas.

Source: City Of Cape Town