If you’re a driver or car owner in South Africa, the new e-hailing rules probably felt like a gut punch. Paperwork. Licences. Panic buttons. Area restrictions. It’s a lot to deal with. And honestly, it feels like it defeats the whole point of ridesharing.
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Summary of legislation change
If you haven’t caught up with the latest updates, here’s a quick breakdown.
The Department of Transport has amended the National Land Transport Act and regulations, officially recognising e-hailing and setting minimum operating and safety standards for both vehicles and drivers.
Some of the key changes include:
- Operating licences: You’ll need one issued in the exact area where you want to work.
- Vehicle branding: Your car must show signage for the service you drive with.
- Panic button: Mandatory for safety.
- Area restrictions: You can only pick up passengers in the areas your permit allows.
Ride-hailing already came with plenty of red tape. These new laws pile on even more, and add higher costs and fewer opportunities for drivers.
Challenges drivers face with this new legislation
Many drivers say these changes take the country backwards, undermining the disruption and innovation ridesharing technology like Uber and Bolt brought to transport.
As a driver, you’re now facing:
- Higher running costs: Licences, panic buttons, vehicle branding, they all add up.
- Reduced earning opportunities: Area restrictions limit where you can operate thereby reducing your earnings. You can drop a passenger outside that area, but you’re required to drive back to your permitted area to get your next passenger.
- Increased risk: Tension between traditional taxis and ridesharing drivers has sometimes turned deadly. Branding your vehicle can make you an easier target.
These rules make driving more complicated, more expensive, and riskier than before.
Why should you look at alternatives
At Tarlen, we see every change in transport rules as a chance to rethink how your car earns, and what that could look like in the years ahead.
It’s a chance to step off the hamster wheel and plan a business that’s more resilient. One that can survive changing laws and still put money in your pocket.
Your car can continue working for you despite the new legislation. That’s why we’re diving into practical e-hailing alternatives car owners can explore today.
Practical e-hailing alternatives South Africa car owners can explore
Managed e-hailing fleet
Instead of driving yourself, you can lease your car to a professional e-hailing fleet. You get paid while someone else drives, cleans, and maintains your vehicle.
Best for: Entrepreneurs with multiple cars or people looking to invest in a hands-off business.
| Pros | Cons | |
|---|---|---|
|
1. |
Hands off for car owners. |
Income is shared with the management company |
|
2. |
The cars are managed by professionals. |
Less control over how your cars are used. |
Car rental + chauffeur service
Many small rental businesses offer cars with vetted drivers. You supply the vehicle, they supply the driver.
Best for: Car owners who want stable income without having to drive themselves.
| Pros | Cons | |
|---|---|---|
|
1. |
Predictable and reliable income. |
Dependent on a third-party operator. |
|
2. |
You’re not the one driving. |
Less flexibility over how the business runs. |
|
3. |
More time for other priorities while your car earns |
|
Peer-to-peer carsharing (P2P)
This is the closest thing to letting your car “work while you sleep”. List your car on a platform like Tarlen. You set availability, vetted renters book it, and you earn while they rent it.
Best for: Owners who want passive income from idle cars without being behind the wheel.
| Pros | Cons | |
|---|---|---|
|
1. |
Passive income. You don’t need to drive. |
Wear and tear from frequent use. |
|
2. |
Scalable. You can add more cars as your income grows. |
Requires commercial insurance, as private insurance doesn’t cover carsharing. |
|
3. |
Flexible scheduling, you control when your car is available |
|
|
4. |
No operating license required. |
|
How to start a carsharing business on Tarlen
With Tarlen, all you need to get started is your car and the right commercial insurance. No operating licence or special branding required. Here’s how to start your carsharing business:
- Commercial insurance: Get a policy that covers car hire.
- Sign up: Create your host profile and list your car or reach out to the team and get help listing your car..
- Set availability: Choose the availability that fits your life.
- Accept requests: When renters see your car, they’ll send a message or booking request. Talk to them and accept the request.
- Prepare your car: Clean it and take photos before and after each rental to document the condition.
- Earn and grow: Track bookings, adjust pricing, improve your listings, and consider adding more cars.
Final note
Regulations can feel like a wall, but sometimes, walls have doors that lead to better opportunities.
If you’re tired of nightly e-hailing shifts or worried about rising compliance costs and safety, it’s time to step through that door.
Your car can still earn for you, and smarter than ever. With Tarlen, you can turn idle time into income. Start today, take control of your car, and build a business that works for you.
Final note
Q: Is e-hailing still legal?
Yes, but only if you follow the new licence and safety rules.
Q: Does carsharing count as e-hailing?
No. Carsharing is a rental model. You still need the right commercial insurance, but it’s not regulated like passenger transport.
Q: Where do I apply for an operating licence?
Through your Provincial Regulatory Entity. Each province has its own process.
Q: What do I need to start my carsharing business?
You’ll need a vehicle that meets Tarlen’s eligibility criteria and a commercial insurance policy that covers car hire.
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