Imminent Crackdown on On-Demand Delivery and Ride-Hailing Services in SA

South African authorities are gearing up for a significant regulatory operation that could have profound implications for the on-demand delivery and ride-hailing industry. Employment and Labour Minister Nomakhozana Meth announced plans for an impending crackdown targeting sectors considered high-risk for illegal employment and safety violations.

This development follows direct inquiries from IFP MP Liezl van der Merwe, reflecting tactics reminiscent of recent governmental interventions in the restaurant industry, spotlighting illegal workers. Minister Meth confirmed these "high-impact and joined blitz inspections" will focus on problematic sectors, indicating that the delivery and ride-hailing services are among those in the crosshairs.

With periodic sweeps planned around November and December, the effort aims to mitigate the hiring of undocumented foreigners—a situation exacerbated by fraud within the Department of Home Affairs which enables illegal acquisition of South African documentation.

Hein Jonker from the Motorcycle Safety Institute of South Africa emphasized a pressing issue of rider training and licencing. There is concern that some foreign operators might be using foreign licences obtained under less stringent requirements to work on South African roads. This not only leads to job displacement of local and legally permitted workers but also contributes to perilous driving behavior, threatening road safety for everyone.

Drivers and riders in these industries are often under tremendous pressure to fulfill rapid deliveries, a predicacy that could encourage unsafe practices. To improve safety and compliance, enforcement of road law—with checks like roadblocks—has been suggested as a method to assure all drivers possess valid South African licences.

Spar, through its national PR manager Mpudi Maubane, assured that their recruitment protocols for Spar2U riders are thorough, fulfilling all legal stipulations and placing emphasis on the vetting of foreign national drivers. New recruits are subjected to skill assessments and a pairing with experienced drivers to bolster on-road safety.

Similarly, Mr D and Uber defend their practices, attesting that their respective drivers are rigorously assessed and must uphold valid licences to operate. These compliances are integral to their operational ethos, highlighting the dichotomy between industry standards and the concerns being flagged by the South African government.

As the crackdown looms, companies within the sector are highlighting their preparedness and commitment to legal compliancy, even as governmental scrutiny intensifies. The outcome of this initiative could ultimately reform a vital sector of South Africa's economy and improve road safety standards for operators and the general public alike.