Cape Town Lifts Metered-Taxi Licence Moratorium

For residents and visitors alike, reliable public transport is the lifeblood of any bustling city. In Cape Town, a significant announcement from the Western Cape Department of Transport and Public Works and the City of Cape Town signals a new era for the metered-taxi industry. After a period of careful assessment, the moratorium on new applications for metered-taxi operating licences has officially been lifted, paving the way for a more robust and regulated transport sector. This move promises to not only revitalise the industry but also enhance service delivery for commuters across the Mother City.

The moratorium, which was put in place in February 2021 at the City's request, served a crucial purpose: to allow for a comprehensive evaluation of the demand and supply dynamics within Cape Town's metered-taxi market. This rigorous two-year study, developed by the City, has now concluded, providing a clear roadmap for sustainable growth. The findings are significant: there is a determined demand for a total of 6,000 metered-taxi operating licences in Cape Town, a figure that includes those operating from traditional ranks, commercial bases, and increasingly, via e-hailing platforms.

Understanding the Demand-and-Supply Methodology

The core of this strategic decision lies in the City of Cape Town's meticulous demand-and-supply methodology. This sophisticated approach was designed to ensure the long-term viability of the metered-taxi industry, striking a delicate balance between meeting commuter demand and preventing an over-supply of operators that could destabilise the market. The ultimate goal is a sustainable industry where operators can thrive, and passengers can consistently access safe, reliable, and legal metered-taxi services.

Key insights from this comprehensive study include:

• A confirmed demand for 6,000 metered-taxi operating licences throughout Cape Town.
• Identification of 2,646 currently legal metered-taxi operators holding valid operating licences.
• Recognition of up to 711 metered-taxi operating licences that have lapsed or expired.
• The availability of a substantial balance of 2,643 additional, brand-new operating licences for new entrants.

This phased approach to lifting the moratorium ensures a smooth transition, prioritising existing operators while simultaneously opening doors for fresh talent and investment in the industry.

The Two-Phase Rollout: A Clear Path Forward

To manage the influx of applications efficiently and practically, the lifting of the moratorium is being executed in two distinct phases. This structured approach aims to provide clarity for all applicants, whether they are long-standing operators or aspiring new drivers.

Phase One: Renewing Lapsed Operating Licences

This initial phase is specifically designed for the holders of the 711 metered-taxi operating licences that have previously expired. It offers a vital window of opportunity for these operators to regularise their status and continue contributing to Cape Town's transport network.

Application Period: Monday, 13 February 2023 to Tuesday, 28 February 2023.

Key Process Details for Lapsed Licences:

• The Provincial Regulatory Entity (PRE) will directly notify holders of the 711 non-renewed licences via SMS, encouraging them to apply for new licences.
• Operators who anticipate difficulty meeting the Tuesday, 28 February 2023 deadline may submit a written request for an extension to the PRE, accompanied by a clear motivation for the delay.
• For those uncertain about their licence status, the PRE can be contacted directly via email at [email protected] or by phone at 021 483 0241 to verify if their name appears on the list of expired licences. This proactive step can save considerable time and effort.
• The base address from which the operator intends to operate must be situated within the City of Cape Town's metropolitan boundary. This ensures that the licences are issued for services within the defined urban area.
• Operators intending to operate from a residential base are permitted to apply for one metered-taxi operating licence. This caters to individual entrepreneurs.
• For those operating from a commercial base, there is an allowance to apply for a maximum of five metered-taxi operating licences, supporting larger operations and small businesses.
• Applicants operating from an informal residential dwelling or backyard must secure a letter from their sub-council or local ward councillor confirming the informal residential address. This crucial step validates the operational base for regulatory purposes.
• Foreign nationals must possess the necessary residency and work permits, which must remain valid for a minimum of 18 months from the date of application. This ensures compliance with immigration and labour laws.
• A significant streamlining measure: operators are no longer required to obtain a letter of provisional support from the City of Cape Town before lodging their applications. All applications are now submitted directly to the PRE.
• Applications can be conveniently submitted via email to [email protected].
• Alternatively, physical applications can be handed in at the Vangate Shared Service Centre, located at the corner of Bosduif and Volstruis Streets in Bridgetown, Athlone.
• Important financial note: Cash payments are explicitly no longer accepted for application fees. Applicants should prepare to make payments via alternative, traceable methods.

Phase Two: New Entrants and Additional Licences

Following the renewal window for lapsed licences, the second phase opens the door wide for new entrants to the metered-taxi industry, as well as for existing operators looking to expand their fleet. This phase represents a substantial opportunity for entrepreneurs to join a regulated and growing sector.

Application Period: Applications open on Wednesday, 1 March 2023, and will continue until the available licences are allocated.

Key Process Details for New Licences:

• A total of 2,643 new operating licences are available, offering a significant expansion of the metered-taxi fleet in Cape Town.
• As with lapsed renewals, the base address of operation must fall within the City's metropolitan boundaries.
• One metered-taxi operating licence is permitted per residential base.
• A maximum of five metered-taxi operating licences can be applied for by those operating from a commercial base.
• A letter from the sub-council or local ward councillor is required for applicants operating from an informal residential dwelling or backyard.
• Foreign nationals must present residency and work permits valid for at least 18 months from the date of application.
• The simplified application process means no provisional support letter from the City is required; applications go directly to the PRE.
• Email submissions are accepted at [email protected].
• Physical applications can be submitted at the Vangate Shared Service Centre in Bridgetown, Athlone.
• Crucially, cash payments for application fees are not accepted.

The Role of the Provincial Regulatory Entity (PRE)

The Provincial Regulatory Entity (PRE) plays a pivotal role throughout this entire process. As the designated body responsible for receiving operating licence applications and issuing public transport operating licences, the PRE will guide applicants through the required documentation and procedures. It is imperative that applicants understand that an application will only be considered complete once all necessary supporting documentation has been submitted. Any missing documents will lead to delays or rejection, so thorough preparation is key.

Impact and Opportunity for Cape Town

Councillor Rob Quintas, the City’s Mayoral Committee Member for Urban Mobility, highlighted the positive implications of this development. He stated, “I encourage those whose operating licences have lapsed to make use of the opportunity to apply for a new metered-taxi operating licence within the stipulated timeframes. Once this time has lapsed, the process will be open to new entrants to the metered-taxi industry who want to apply for metered-taxi operating licences.”

This move is indeed excellent news for the market and for aspiring entrepreneurs. The availability of 2,643 new spaces presents a substantial chance for individuals and businesses to formalise their operations and contribute to Cape Town's economy. The inclusive nature of this opportunity means it is available to all operators, irrespective of whether they operate as traditional metered-taxi drivers or utilise an e-hailing platform. This recognition of the evolving transport landscape ensures that the regulatory framework remains relevant and adaptable.

The lifting of the moratorium is not merely a bureaucratic adjustment; it is a strategic step towards building a more efficient, reliable, and accessible public transport system in Cape Town. By increasing the number of legal operators, the City aims to reduce illegal operations, enhance passenger safety, and provide more choices for commuters. For operators, it means greater legitimacy, access to formal markets, and the ability to grow their businesses within a supportive regulatory environment.

Frequently Asked Questions (FAQs)

What is a metered-taxi operating licence?

A metered-taxi operating licence is a legal document issued by the Provincial Regulatory Entity (PRE) that authorises an individual or entity to operate a metered-taxi service within a specified area, in this case, Cape Town. It ensures that operators meet certain standards for safety, vehicle fitness, and professional conduct, providing a layer of protection for both drivers and passengers.

Why was there a moratorium on new licences?

The moratorium, implemented in February 2021, was a temporary halt on new licence applications. Its purpose was to allow the City of Cape Town to conduct a thorough demand-and-supply study. This study aimed to accurately assess the current needs of the city's transport sector and determine the optimal number of metered-taxi licences required to create a sustainable and efficient industry, preventing both over-supply and under-supply.

How many new licences are available for application?

Following the demand-and-supply study, there is a confirmed demand for a total of 6,000 metered-taxi operating licences. Currently, 2,646 are valid. For new entrants, there are 2,643 additional or new operating licences available for application starting from 1 March 2023.

Can I apply if my previous metered-taxi licence expired?

Yes, absolutely. The first phase of the lifting of the moratorium specifically targets holders of the 711 lapsed metered-taxi operating licences. They have a dedicated window from 13 February to 28 February 2023 to apply for a new licence in lieu of their expired one. It's crucial to act within this timeframe.

What is the difference between a residential and a commercial base for applications?

A 'residential base' refers to an operator working from their home address. If operating from a residential base, an applicant can only apply for one metered-taxi operating licence. A 'commercial base' refers to an operator working from a dedicated business premises. Operators from a commercial base can apply for a maximum of five metered-taxi operating licences, facilitating larger fleets.

Do e-hailing drivers need this licence?

Yes, the demand-and-supply study and the subsequent allocation of licences apply to all metered-taxi services, regardless of how they are hailed. This includes operators working from a rank, a commercial base, or via an e-hailing platform. If you are an e-hailing driver in Cape Town, you must possess a valid metered-taxi operating licence.

What documents are required for the application?

While the specific list of required supporting documentation is guided by the PRE, applicants should generally prepare identity documents, proof of address (within the metropolitan boundary), vehicle documentation, a valid driver's licence with a Professional Driving Permit (PrDP), and for foreign nationals, valid residency and work permits. For informal residential dwellings, a letter from the sub-council or ward councillor is also necessary. It is highly recommended to contact the PRE or check their official guidelines for a comprehensive list to ensure your application is complete.

Where can I get more information or assistance?

For specific queries regarding your licence status or the application process, you can contact the Provincial Regulatory Entity (PRE) directly. Their email address is [email protected], and their phone number is 021 483 0241. They are the primary contact point for all licensing-related enquiries.

Can I pay the application fee with cash?

No, please note that cash payments are explicitly no longer accepted for application fees. Applicants should arrange for alternative payment methods, such as electronic transfers or card payments, as guided by the PRE.

Conclusion

The lifting of the metered-taxi licence moratorium marks a pivotal moment for Cape Town's transport sector. It signifies a commitment from the City and the Western Cape Department of Transport and Public Works to foster a well-regulated, efficient, and expanded metered-taxi industry. With thousands of new and renewal opportunities available, this is the time for operators, both established and aspiring, to engage with the process, secure their licences, and contribute to the vibrant mobility landscape of Cape Town. By ensuring compliance and participation, we can collectively build a safer and more reliable transport system for all.

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