The Saudi Transport General Authority (TGA) has announced that it will no longer be granting new licenses for motorcycles to deliver orders via mobile applications until new regulations are issued. This decision comes after the experimental regulatory phase for these companies providing delivery services on motorcycles has come to an end. The authority’s spokesman, Saleh Al-Zuwayed, stated that the security authorities have already arrested delivery bike drivers in Riyadh who did not have work permits or were in violation of traffic safety regulations.
The outbreak of the coronavirus pandemic led to a massive expansion of delivery services through electronic platforms in Saudi Arabia. This expansion provided ample opportunities for investments, business growth, and job creation in this flourishing sector. Al-Zuwayed previously reported that the growth of light freight transport activity in the country increased by 38 percent in the first quarter of this year compared to the same period in 2023. There are currently 300 official licenses for light freight transport activity and 80 companies in Saudi Arabia that are involved in delivery applications.
At the end of the first quarter of this year, the number of existing commercial registrations in Saudi Arabia saw a growth of 61 percent, reaching 4700 registrations compared to 2900 in the same quarter of last year. Similarly, the application development activity also experienced a 45 percent growth in commercial registrations, totaling 11,423 registrations by the end of the first quarter of this year. The increase in commercial registrations indicates a growing interest and participation in the delivery services sector through electronic platforms in the country.
The decision to halt the issuance of new licenses for motorcycle delivery services comes as the TGA prepares to introduce new regulations for this sector. These regulations are expected to address issues related to work permits, traffic safety regulations, and licensing requirements for companies providing delivery services on motorcycles. The move aims to ensure compliance with existing laws and regulations while promoting a safe and efficient delivery services ecosystem in Saudi Arabia.
The experiences of delivery bike drivers in Riyadh who were found to be operating without proper permits or in violation of traffic regulations highlight the importance of adhering to legal requirements in the sector. By enforcing regulations and licensing requirements, the TGA aims to create a fair and competitive environment for businesses providing delivery services on motorcycles. This will not only ensure the safety of drivers and customers but also promote transparency and accountability within the sector.
In conclusion, the decision by the TGA to halt the issuance of new licenses for motorcycle delivery services reflects the authority’s commitment to ensuring compliance with regulations and promoting a safe and efficient delivery services sector in Saudi Arabia. The upcoming regulations are expected to address key issues related to work permits, licensing requirements, and traffic safety regulations for companies operating in this sector. By fostering a regulatory environment that promotes transparency and accountability, the TGA aims to support the growth and sustainability of delivery services through electronic platforms in the country.
