TGA seeks public feedback on taxi brokerage app licensing terms, conditions

Logo of The Transport General Authority (TGA)

Transport General Authority (TGA) put up the draft terms and conditions for licensing taxi brokers through mobile apps for public opinion poll via the National Competitiveness Center’s (NCC) Istitlaa e-platform until July 12.

TGA seeks to raise the quality of taxi services through applications by organizing and supervising market activity, while raising operational efficiency, to achieve the highest standards and safety requirements within the Kingdom. The authority is keen to create an appropriate environment in line with the economic and social development objectives of Saudi Vision 2030.

Terms stipulate that businesses cannot broker for taxis on mobile apps without obtaining a license, which must be renewed upon expiry, cancellation or suspension. The licensee’s ability to deliver taxi services is limited to those licensed to engage in public or family fares.

To acquire a license, the entity has to file a request with TGA, obtain a commercial register for its taxi business and secure a trademark registration certificate for the app in case the brand name differs from the legal one.

Each business will also be required to submit a SAR 250,000 financial guarantee, a social security certificate as well as a Zakat and income certificate.

In addition, applicants must present their taxi guidance systems which should be linked and integrated with TGA’s technical system and all e-systems specified by the authority. They should also name their service providers, contact addresses and working hours.

They will also need to demonstrate its competency to provide taxi app brokerage services, which could be achieved through business history or an overview of its capabilities over the past five years.

In case of violations, penalties may include a fine ranging from SAR 500 to SAR 5,000. Entities reserve the right, within 60 days from the date of violation filing, to object before a relevant committee.