In a significant regulatory move aimed at enhancing safety and transparency in one of the Kingdom's fastest-growing sectors, the Saudi Public Transport Authority announced substantial amendments to the regulations governing delivery services. These updates, which were presented for public discussion via the "Istilaa" platform, are intended to address several negative practices that have recently plagued the sector and establish a new era of reliability and protection for the rights of all stakeholders.
General context and growth of the delivery sector
In line with global trends and its Vision 2030 initiative supporting digital transformation, Saudi Arabia has witnessed a surge in the use of delivery apps. This growth accelerated significantly during and after the COVID-19 pandemic, with these apps becoming an integral part of daily life for millions. However, this rapid expansion has not been without its challenges. Several issues have emerged, including the use of fake accounts by drivers, discrepancies between driver or vehicle data and that registered in the app, and growing concerns about customer data privacy and safety.
Key features of the new organizations
The updated regulations included a set of strict controls and severe penalties to address these challenges, most notably:
- Full refund right: The amendments grant the customer the right to a full refund if the actual driver's identity or vehicle specifications differ from the information displayed in the application. This measure enhances the accountability of companies and service providers and ensures a safe and reliable user experience.
- Privacy protection and number blocking: The new regulations require apps to block customers' phone numbers from drivers, restricting communication between the two parties to calls and messages made through the app itself. This measure aims to protect user privacy and prevent any unwanted contact or harassment after the delivery is complete.
- Facial recognition identity verification: To block anonymous or fake accounts, the regulation mandates the activation of “Face Verification” technology to confirm the driver’s identity before starting work, with mandatory linking to the “Nafath” platform for Saudi drivers to ensure the conformity of official data.
- Data transparency: Applications must now display clear customer data, including at a minimum the driver's full name, personal photo, vehicle type, and license plate data, immediately upon acceptance of the application.
Importance and expected impact
These regulations are of paramount importance on several levels. Locally , they are expected to boost trust in digital services and encourage more users to rely on safe delivery apps. They also contribute to regulating and professionalizing the gig economy, thus improving the working environment for committed drivers. Regionally , the Kingdom is positioning itself as a leader in regulating this vital sector, and these regulations could serve as a benchmark for other countries in the region facing similar challenges. This move not only benefits consumers but also enhances the attractiveness of the Saudi market for serious investments in the technology and logistics sector, aligning with the sustainable development goals of Vision 2030.
