A fine of 1600 riyals for employing unauthorized drivers in transportation applications
Introduction to the new executive regulations
In a strategic move aimed at enhancing service quality and ensuring the highest levels of safety and security, the Public Transport Authority in Saudi Arabia has introduced comprehensive regulatory amendments to the executive regulations governing ride-hailing services. These amendments tighten oversight of ride-hailing applications , with the Authority imposing fines of up to 1,600 Saudi Riyals for employing unauthorized drivers. This reflects the commitment of relevant authorities to regulating the sector and protecting the rights of users.
General context and historical background of the guided transport sector
The focus on regulating the ride-hailing sector in Saudi Arabia dates back to the early stages of Vision 2030, which prioritizes digital transformation and Saudization as key pillars. Previously, the taxi sector suffered from disorganization and a lack of regulation. With the entry of global and local ride-hailing apps into the Saudi market, the need arose for a legal framework that guarantees the rights of both passengers and drivers. The Public Transport Authority began implementing a 100% Saudization policy for app-based driver positions years ago, creating hundreds of thousands of job opportunities for Saudi citizens. These new regulations aim to further enhance these efforts by establishing a more organized work environment.
Conditions for practicing the profession legally
Under the updated regulations, a "permit" is defined as the official approval issued by the Authority that qualifies a driver to work in this vital sector. The Authority has mandated that drivers obtain this prior permit and has stipulated three essential and non-negotiable criteria: First, the driver must be a Saudi citizen. Second, they must possess a valid driver's license. Third, they must have a clean criminal record. These conditions are essential for the permit's validity, and it will be automatically and immediately revoked if any of them are violated, ensuring continued efficiency and reliability.
Details of the strict penalties and fines
To ensure full compliance, the updated regulations impose a series of strict, graduated financial penalties. These penalties begin with a fine of 300 riyals for non-compliance with the approved service policy. The penalty escalates to include the suspension of operating companies' licenses for periods ranging from three to nine months. The most serious violation, for which the authority has increased the deterrent, is the failure to cease operations with a driver whose permit has been revoked. The fine for this offense reaches 1,600 riyals for the first offense, along with corrective measures including a warning or immediate service suspension.
The importance and expected impact of the new decisions
Domestically, these amendments contribute to creating a safe and reliable transportation environment, increasing public trust in ride-hailing apps and protecting passengers from potential risks associated with unqualified drivers. They also enhance the stability of the labor market for citizens and prevent unfair competition. Regionally, this step positions the Kingdom at the forefront of Middle Eastern countries in terms of governing the gig economy and regulating smart transportation, setting a benchmark for others to follow. Internationally, these regulations align with major global trends seeking to impose strict oversight on ride-hailing companies to ensure passenger safety, reflecting the Kingdom's commitment to implementing global best practices.
The role of online platforms in enhancing oversight
The amendments also included updating the definition of the Authority's electronic platform to be the sole and approved source for accessing data on establishments, vehicles, and drivers. The Authority mandated that service providers contract only with authorized drivers, and that the contract period not exceed the validity period of the activity license. This ensures ongoing regulatory compliance and real-time digital monitoring, preventing any manipulation or violation of regulations.
