New transportation regulations for delivery apps: refunds and number blocking
In a move aimed at restructuring the growing logistics sector in Saudi Arabia, the Public Transport Authority has proposed draft amendments to the executive regulations governing delivery services through the "Istilaa" platform. These actions are part of the Authority's efforts to ensure the quality of services provided to users and to close loopholes that could be exploited for manipulation or to compromise customer privacy.
Consumer rights: Immediate refund
The most significant aspect of the new amendments is the unprecedented strengthening of consumer rights. The regulations grant customers the full right to a refund if there is a discrepancy between the driver's or vehicle's information and the data registered in the application. This measure aims to eliminate the phenomenon of "account rentals" or the operation of unauthorized drivers under false names, thereby increasing the reliability and security of daily transactions.
Privacy protection and verification technologies
In the context of protecting personal data, the new draft law explicitly prohibits granting drivers access to customers' phone numbers, restricting communication between the two parties to channels available within the application only. To ensure driver compliance, the authority mandates that companies activate facial recognition to verify the driver's identity before they begin work, in addition to mandatory integration with the "Nafath" platform for Saudi drivers, to guarantee that the person driving the vehicle is the same person officially registered.
The context of the organization and its economic importance
These amendments come at a time when the delivery market in the Kingdom is experiencing rapid growth, having become an integral part of daily life and the digital economy. This rapid expansion has been accompanied by some regulatory challenges related to service quality and user safety. These regulations are expected to help clean up the market from unregulated practices and create a fair competitive environment between companies and individual drivers, thereby enhancing the sector's attractiveness for investment and protecting the rights of all parties.
Deterrent penalties for violators
To ensure seriousness in implementation, the amendments granted the Violations Review Committee broad powers, including imposing financial fines exceeding 10,000 riyals. Penalties may reach the suspension of the license for a year or its permanent cancellation for establishments that are lax in applying safety and transparency standards, or those that discriminate in assigning requests between individual drivers and those affiliated with establishments.
