High Demand for Metered-Taxi Licenses Exceeds Supply in Western Cape

The Western Cape Mobility Department and City of Cape Town have reported an overwhelming demand for metered-taxi operating licenses in the province. Despite the availability of only a limited number of licenses, the number of applications received has already surpassed the total slots.

Phases of the Application Process

Earlier this year, the Western Cape Provincial Regulatory Entity lifted the moratorium on new metered-taxi operating license applications. The process was divided into two phases. In phase one, 711 expired licenses were eligible for renewal by February 28, 2023. In phase two, which began on March 1, 2023, new applications for 2,643 additional operating licenses were accepted.

Current Scenario

There are currently 6,991 pending applications. While 2,958 have been approved, only 973 licenses have been collected by applicants. However, not all approved applications will result in actual operating licenses due to non-submission of necessary documentation by some applicants within the specified period.

Implications for Prospective Applicants

Given the high demand for licenses and pending applications exceeding available slots, the City and Provincial Regulatory Entity confirm that new applications may not be supported. Additionally, the R300 application fee does not guarantee favorable consideration, as the number of applications already exceeds the available licenses.

Importance of Operating Licenses

The National Land Transport Act requires that all public transport providers have valid operating licenses. Operators without valid licenses risk impounded vehicles or fines. Western Cape Minister of Mobility, Ricardo Mackenzie, stresses the importance of compliance with legal regulations and submitting completed applications.

Councillor Rob Quintas, City’s Mayoral Committee Member for Urban Mobility, acknowledges the metered-taxi industry’s significance as an essential public transport stakeholder. However, prospective operators should consider the high demand for licenses and realize that their applications may not be successful. The City and Provincial Regulatory Entity will reevaluate the situation as the existing licenses are utilized.