Uber Sprints to Back South Africa with R5-Billion as Licensing Fight Looms
Uber has announced a bold R5-billion investment push for South Africa over the next three years, positioning the money behind electric mobility plans and expansion of new revenue streams. But the ride-hailing company is also fighting an uncomfortable reality: its e-hailing licence process is still not finalised under South Africa’s updated transport laws.
Uber’s R5-billion pledge meets regulatory strain
The commitment was revealed at the South African Investment Conference on Tuesday, where corporate announcements often spark debate. Critics argue that some companies recycle existing spending plans and label them as “new” investments. Uber’s messaging acknowledged that point by describing the figure as a blend of previously planned spending and additional capital.
Uber’s sub-Saharan Africa GM, Deepesh Thomas, clarified that the pledge includes support for electric vehicle fleet expansion, charging infrastructure, upgrades for merchant hardware, and steps aimed at creating new earnings opportunities through Uber’s platform.
Thomas told TechCentral in an interview that the company is also leaning into new areas that he believes require incremental funding. These include efforts tied to Uber Eats and moves to strengthen participation in township economies, along with the roll-out of Uber Go Electric.
Even so, the timing of the pledge is hard to ignore. Uber is actively engaging government as it seeks regulatory relief over the licensing framework that governs e-hailing. Announcing investment alongside that lobbying strategy effectively sends a message to regulators: Uber wants government to understand the business impact of its rules, and to work with the company rather than against it.
“We’re asking for further support and engagement with the regulators and the transport ministry,” Thomas said, describing Uber’s preference for a cooperative approach. He did not explicitly say the money depends on immediate regulatory approval, but the intent is clear—Uber wants its plans to receive more favourable conditions as it scales.
An “awkward” gap in Uber’s e-hailing licence status
Thomas’ comments highlight the tension at the centre of Uber’s South African position. The company remains unlicensed under the amended National Land Transport Act, even though the compliance deadline passed on 11 March.
In other words, Uber is presenting itself as ready to invest heavily, while its legal footing for continued operations remains under review. This puts the company in a difficult posture during a period when regulators are tightening oversight for e-hailing platforms.
Thomas said Uber applied for its e-hailing platform licence in December, but the process is still incomplete. By comparison, competitors Bolt and Wanatu have already received their licences, making Uber’s delay stand out.
“We believe our licence will be issued imminently, and there have been no challenges from the regulator on this specifically,” Thomas said.
Uber’s licensing is tied to the National Land Transport Amendment Act, which began operating on 12 September 2025 after being published in June 2024. Under this framework, e-hailing platforms must be registered and must comply with a long list of obligations.
These requirements include mandatory vehicle branding, the installation of panic buttons for both drivers and passengers, and geo-restrictions that limit drivers to designated jurisdictions. Developers who allow unlicensed operators on their platforms face penalties, including fines up to R100,000 or possible jail time of up to two years.
The new rules were introduced partly in response to serious attacks on e-hailing drivers, including cases where drivers were killed. Some attackers were linked to metered taxi operators, who accused e-hailing services of operating under different regulatory standards.
Why Uber says the system struggles with volume
Another issue raised by Uber is administrative capacity—specifically, how the conversion and licensing process works after the amended law took effect.
Drivers who held operating licences before the act came into force had to apply to convert them within 180 days, and the regulator is required to respond within 60 days after receiving conversion applications. Thomas argued that regulators have historically struggled to handle the volume of these applications.
But the bigger operational concern, he said, begins after a platform licence is granted. At that point, drivers must also obtain their own individual operating licences. Uber’s concern is that the system may not be able to issue licences quickly enough to match demand—particularly as thousands of drivers seek authorisation under the new rules.
Thomas said tens of thousands of drivers have applied in the past, but only thousands have been approved. In some cities, Uber also pointed to caps on operating licences that can reduce investment confidence. If third parties believe vehicle assets could be impounded or stranded, funding for new vehicles becomes harder to secure.
To tackle these practical problems, Uber has set up a technical task force with the National Public Transport Regulator and the national transport department. Thomas said the company is hearing repeated questions from drivers and the industry, including fears about what happens during police stops.
“What does this mean? If I get stopped by a policeman, will my car get taken away? Am I able to work?” he said.
Scaling Uber Go Electric as demand outpaces supply
While the regulatory situation adds uncertainty, Uber’s investment narrative is anchored heavily in electric mobility.
Part of the R5-billion pledge will support expansion of Uber Go Electric, Uber’s lower-cost electric vehicle service. Thomas said Uber has more than 120 EVs operating in Johannesburg, concentrated in the Sandton–Rosebank corridor.
He added that demand has outstripped supply since the service launched, with Uber receiving additional vehicles and expanding into new corridors on a monthly basis as charging infrastructure improves.
Uber also reported that its two-wheel courier delivery fleet is already fully electric, aligning with Uber’s broader global goal of zero emissions by 2040. Thomas described the demand for Uber Go Electric as encouraging, saying Uber is “pushing quite hard to scale this” as it works through capacity and infrastructure constraints.
Uber stays bullish despite the licence delay
Uber’s message is ultimately a balancing act. The company is urging government to support “smart regulations” that understand the realities on the ground, while also insisting it is investing in South Africa’s future—particularly through EV fleet growth and new platform-led opportunities. With Uber’s licence still pending, the next months may show whether its investment pledge and regulatory engagement translate into faster approvals and smoother scaling for drivers and riders alike.