The Public Transport Authority announced the issuance of a new and comprehensive regulatory framework for the transport of goods using motorized bicycles, in a decisive step aimed at controlling the chaos in the delivery sector and raising the levels of safety and quality in the rapidly growing logistics services in the Kingdom.
Details of the new regulations and financial penalties
The regulations included a precise classification of violations, dividing them into serious and minor offenses to ensure a graduated scale of penalties. The authority imposed substantial fines to deter violators, with the fine for operating without a license reaching 28,800 riyals for large establishments, along with the impounding of the motorcycle for 40 days, while the penalty for individuals for the same violation is 16,800 riyals.
The authority did not stop there, but implemented a escalating mechanism to double fines in the event of a repeat violation within one year, where the penalty can reach five times its basic value when repeated for the fourth time or more, which reflects the seriousness of the concerned authorities in eliminating violations.
Expelling foreigners and publicly shaming violators
In a move considered the strictest of its kind, the regulations stipulate deterrent penalties, including the deportation of any non-Saudi who violates Article 4 of the system, to prevent undocumented or illegal workers from operating in this vital sector. The penalties also include publishing the names of violators in local newspapers at their own expense after the ruling becomes final, to serve as a warning to others.
Broad powers for inspectors and vehicle impoundment
The regulations granted inspectors broad powers to regulate the market, including:
- Vehicles found in violation will be impounded for up to 60 days in advanced repeat offenses.
- License suspension for non-compliant establishments for up to 9 months.
- Closing offending shops or blocking applications and websites completely or partially.
The authority confirmed that the impounded motorcycles will not be released until the impoundment period has ended and all fines and fees due have been paid in full.
Localization and safety standards
In line with the Kingdom's Vision 2030 for Saudization, new regulations mandate that establishments appoint a Saudi operational supervisor for every 50 motorcycles, with a fine of 12,800 riyals imposed on establishments that violate this requirement. Regarding safety, the regulations completely prohibit the transport of passengers or hazardous materials on cargo motorcycles and require the use of secure storage containers to maintain the appropriate temperature for goods, especially food and medicine.
Context of the event and its economic importance
This move by the Public Transport Authority comes in response to the explosive growth in the e-commerce and delivery app sector in Saudi Arabia, which has led to a significant increase in the number of delivery motorcycles on the streets. These regulations aim to address the traffic and security challenges arising from unregulated operations, protect the rights of the end consumer by ensuring the safe and secure delivery of goods, and safeguard customer data privacy, the violation of which is considered a serious offense under the regulations.
