Regulating E-Commerce Transport Businesses: A Case Study of Uber in South Africa

Abstract

This article contributes to the debate of government regulation versus market self-regulation in South Africa by focusing on the app-based transport business Uber. The article examines the challenges which the government has encountered in developing a regulatory framework for transport app e-hailing business and similar businesses. The author considered some international perspectives in order to unpack how other governments have tackled this challenge. The role of the government is to control the business environment by providing regulations which promote business establishment, free markets, fair competition, and consumer protection. As a result of globalisation and consumer demands, Uber has taken a foothold in South Africa and with it, a new challenge has emerged for the State as a regulator. The challenge is now on government to navigate the complex slippery slope of over or under regulation of e-commerce. This article is underpinned by the Stakeholder theory as its theoretical lens. This article is based on primary and secondary desktop information including existing policy, parliamentary reports, peer reviewed articles, academic books, news reports, government policy documents. The author uses context analysis in order to consider the implications of government regulation on Uber in line with the National Land Transport Amendment Bill. The author examines the proposed Bill to regulate Uber and other application-based transport businesses in South Africa. The paper assesses the role the government should play in proactive regulation by considering the advantage and limitations of this role. Finally, the paper draws on lessons from the international perspective by examining their regulation of Uber and the outcomes of some of their regulatory approaches.