New regulatory framework for the ride-hailing sector in the Kingdom
The Public Transport Authority in Saudi Arabia announced the launch of new executive regulations governing ride-hailing services. This step comes as part of the Authority's efforts to develop the transport sector, improve the quality of services provided, and enhance safety standards for both passengers and drivers, in line with the Kingdom's Vision 2030 goals for developing the logistics and transport sector.
Historical background and development context
The ride-sharing sector in Saudi Arabia has witnessed rapid growth over the past decade, with companies like Uber and Careem becoming integral to the urban transport system in major cities. This significant expansion necessitated a robust regulatory framework that keeps pace with technological advancements and ensures the protection of all stakeholders' rights. The new regulations represent an improvement over previous legislation, placing greater emphasis on technical and security aspects, as well as consumer rights, with the aim of creating a modern, reliable, and sustainable transportation environment.
Key features of the regulations: Safety and passenger rights first
The new regulations include a set of stringent requirements aimed at improving service levels. Among the most prominent features is the requirement for all ride-hailing apps to provide an "emergency icon" directly linked to the Ministry of Interior's Unified Security Operations Center (911). This measure allows passengers and drivers to request immediate assistance in emergencies, significantly enhancing their sense of security.
In a move to protect passengers' rights, the regulations stipulate that drivers are not entitled to payment if the vehicle breaks down during the trip or refuses to complete it for unjustified reasons. They also emphasize the protection of passenger data and privacy, prohibiting its use for marketing purposes without explicit consent.
Strict standards for vehicles and drivers
The authority has set precise conditions for vehicles operating in the sector, limiting their operational lifespan to a maximum of eight years from the year of manufacture. Vehicles must be registered as "public transport" and carry a valid comprehensive insurance policy covering passengers. The regulations also require each vehicle to obtain an annual "operating card" after passing the periodic technical inspection.
Regarding drivers, the regulations require each driver to obtain an annual "professional driver's card," have a clean criminal record, and pass the tests set by the authority to ensure their professional competence. The regulations also prohibit smoking inside vehicles and require drivers to wear the approved uniform and maintain personal hygiene and public decency.
Expected impact on the transport sector
These new regulations are expected to have a tangible positive impact locally, increasing user confidence in ride-hailing apps and improving the overall mobility experience. They will also contribute to market regulation, curb unregulated practices, and raise the professional standards of those working in the sector. Regionally, these regulations position the Kingdom among the leading countries in regulating the sharing economy and could serve as a regulatory model for other markets in the region experiencing similar growth in this vital sector.
