Transport Authority amendments: Refund of order value and blocking of customer numbers
In a regulatory move aimed at restructuring the growing logistics sector, the Saudi Public Transport Authority has introduced draft amendments to the executive regulations governing the delivery of orders through the "Istilaa" platform. These measures come in response to recent market challenges and to ensure a safe and reliable user experience.
Customer's right to a refund and complete transparency
The new amendments include strict provisions that directly benefit the consumer. The authority has granted customers the right to a full refund if the vehicle specifications or the driver's actual identity differ from the information registered in the application. This step aims to eliminate the phenomenon of rented or anonymous accounts and enhance trust in daily transactions.
The draft also requires delivery applications to immediately disclose all trip data to the beneficiary, which includes, at a minimum: the driver’s full name, mobile number, personal photo, vehicle type and license plate data, to prevent any potential manipulation.
Privacy protection and phone number blocking
In an effort to enhance digital privacy, the new regulations prohibit drivers from directly accessing customers' phone numbers. Instead, communication between the two parties is restricted to channels available within the app only, preventing any potential harassment or misuse of personal data and raising the standards of technical security in this vital sector.
The context of the organization and its economic and security importance
This move by the Public Transport Authority comes in the context of the rapid growth of the e-commerce and delivery app sector in the Kingdom, which is a key pillar of the 2030 Logistics Vision. The past period has witnessed some haphazard practices that necessitated decisive intervention, such as the employment of individuals violating residency regulations or the use of motorcycles in unauthorized ways that threaten traffic safety.
These changes are expected to contribute to:
- Enhancing social security: by verifying the identities of drivers through technical linkage to the “Nafath” platform and activating facial verification technology before starting work.
- Improving the urban landscape: by regulating motorcycle traffic and preventing the exceeding of permitted driving hours.
- Supporting the formal economy: by combating commercial concealment and ensuring fairness in the distribution of orders between individual drivers and companies.
Deterrent penalties for violators
The authority did not merely set controls, but granted the Violations Review Committee broad powers to enforce discipline, including financial fines exceeding 10,000 riyals, suspension of the license for a year, or even its permanent cancellation for establishments that are lax in applying safety and transparency standards, which confirms the seriousness of the concerned authorities in regulating this market.
