New transport regulations: Individuals and backpacks are banned from delivering orders

The Public Transport Authority in Saudi Arabia has revealed details of the draft executive regulations for the transport of goods by motorcycle, which include radical changes aimed at restructuring this vital sector. The most prominent feature of the draft is restricting this activity to licensed establishments only, effectively prohibiting individuals from operating independently in the field of motorcycle deliveries. This regulatory step seeks to control the market and improve the efficiency of logistics services.

The context of the organization and its economic importance

This regulatory move comes at a time when the app-based delivery sector is experiencing unprecedented growth in the Kingdom, driven by changing consumption patterns and increasing reliance on e-commerce. In the past, this sector has suffered from some disorganization due to the influx of large numbers of undocumented or untrained workers, negatively impacting service quality and road safety. This regulation falls within the objectives of the National Transport and Logistics Strategy, which aims to solidify the Kingdom's position as a global logistics hub and ensure an attractive and secure investment environment.

Strict technical controls: Goodbye to backpacks

In detailing the regulations, the authority put an end to previously prevalent dangerous practices, categorically prohibiting the carrying of goods in backpacks or slung over the rider's shoulder, as this disrupts the balance of the bicycle and threatens the safety of the rider and other road users. Instead, the regulations mandate that establishments install securely closed and properly engineered cargo boxes on the bicycle frame to ensure the safety of the goods being transported and the stability of the vehicle.

Localization and raising professional efficiency

The regulations also addressed the social and economic aspects of Saudization, requiring companies to appoint a Saudi operational supervisor for every 50 motorcycles operating in the sector. This decision is expected to create quality job opportunities for Saudi citizens in management and logistics. The regulations also stipulate that each driver must obtain a "professional driver's card," which requires a clean criminal record, passing professional competency tests, and adhering to the uniform policy and wearing all personal protective equipment such as helmets, gloves, and protective vests.

Expected impact on the local market

This regulation is expected to bring about a significant transformation on the Kingdom's roads, contributing to a reduction in motorcycle-related traffic accidents by limiting the operational lifespan of motorcycles to just four years to ensure a modern fleet. It will also enhance consumer confidence in delivery services through direct digital monitoring, as the draft emphasizes the necessity of linking all operations to the Authority's electronic platform to monitor fleet movement and driver behavior in real time. The requirement to provide comprehensive insurance covering third-party liability is a crucial step in safeguarding the financial and legal rights of all parties.

In conclusion, the authority clarified that licenses will be issued for one year and are renewable, stressing the need to provide a valid localization certificate and pay any financial fines, if any, while granting a grace period of 30 days to renew expired licenses before they are automatically cancelled, which places companies in front of the responsibility of immediate compliance to ensure the continuity of their business.