Some platforms let the passenger and driver negotiate the fare rather than setting it algorithmically. That changes how a driver should think about which trips to accept, and it changes the vehicle economics too.
This page covers the vehicle requirements and then how a negotiated-fare model works in practice, because accepting low offers to stay busy is the trap it creates.
Driver or Vehicle Requirements at a Glance
What a vehicle generally requires.
- A valid operating licence or authorisation under the National Land Transport Act 5 of 2009
- A current roadworthy certificate and valid vehicle licence
- Registration in the operator’s name, or documented authority to use the vehicle
- Comprehensive insurance covering commercial e-hailing use
- A driver with a valid driver’s licence and professional driving permit (PrDP)
- A vehicle meeting the platform’s year model, type and condition requirements
- Passing the platform’s vehicle inspection
- The seating and door configuration the service class requires
Licence and Eligibility Requirements
Confirm the current vehicle requirements with the platform. Year models, permitted types and condition standards are set by the platform, differ by city and are revised.
Negotiated fares put pricing on you. Where a passenger proposes a fare and the driver accepts or counters, the driver has to know what a trip actually costs before deciding. That is a real advantage for a driver who has done the arithmetic and a disadvantage for one who has not.
Know your cost per kilometre. Fuel, tyres, servicing, insurance, licensing and depreciation, divided across the distance you drive. Any fare below that loses money, and a busy day of below-cost trips is worse than an idle one.
Account for the dead kilometres. The distance to reach the passenger and the distance back from the drop-off point are unpaid, and on a negotiated fare they have to be built into what you accept. A short trip that starts fifteen minutes away is usually not worth taking.
Do not accept low offers to keep the app busy. Utilisation feels productive and below-cost work is not. The driver who declines unprofitable trips earns more over a month than the one who accepts everything.
Vehicle, Inspection and Safety Requirements
Condition standards apply as on any platform — tyres, lights, glass, panels, interior condition and cleanliness — and inspections recur.
Maintenance is a cost per kilometre. Budget servicing, tyres, brakes and suspension proactively, because a breakdown costs the repair plus the earnings lost while the vehicle is off the road.
Roadworthy testing recurs for a vehicle used in public transport. Confirm the frequency with your licensing authority.
Insurance must cover commercial use. A personal motor policy generally excludes e-hailing, which means a claim after an accident while carrying a passenger is likely to be rejected. Declare the use, obtain a policy that covers it, and confirm the excess and whether passengers are covered.
Safety features matter more on a negotiated model. Use the in-app trip sharing and emergency features, keep the trip on the platform, and never agree to complete a trip off the app. An off-platform trip has no record, no insurance position and no support, and it is the arrangement in which drivers are most exposed.
Decline what does not feel right. Declining a trip is always available and it costs a fraction of what an incident costs. Areas, times and passenger behaviour are all legitimate grounds.
Documents, PrDP or Supporting Evidence
What is needed to register the vehicle.
- A valid operating licence or authorisation
- The vehicle registration certificate and current licence disc
- A current roadworthy certificate
- Comprehensive insurance schedule showing e-hailing cover
- A valid driver’s licence and professional driving permit
- A police clearance certificate, where the platform requires it
- A letter of authority from the owner, where the driver is not the owner
- Proof of identity and the right to work in South Africa
- Banking details in the operator’s own name
Registration or Application Process
The operating licence is the legal requirement, not the platform’s. The National Land Transport Act requires the applicable operating licence or authorisation for a public transport service, issued through the provincial regulatory entity. Platform registration is not a substitute, and operating without it exposes the vehicle to impoundment. Confirm the current requirements with your provincial regulatory entity.
Register directly with the platform — registration is free and nobody legitimate charges to activate an account.
Work out your cost per kilometre before your first trip and write it down. On a negotiated model that number is the whole business, and drivers who have not calculated it accept work that loses money without knowing.
Keep records of trips, earnings and expenses. Income from e-hailing is taxable and must be declared to SARS, and expenses actually incurred in producing that income are deductible — but only with records. Registering as a provisional taxpayer may apply.
- Confirm the current vehicle requirements with the platform
- Calculate your cost per kilometre before your first trip
- Build unpaid pickup and return distance into what you accept
- Decline trips priced below your cost — busy is not profitable
- Treat short trips with a long pickup as usually not worth taking
- Keep every trip on the platform — never agree to go off-app
- Use in-app trip sharing and emergency features
- Decline any trip that does not feel right
- Budget maintenance per kilometre and do it proactively
- Keep records — the income is taxable and expenses are deductible
Frequently Asked Questions
How does a negotiated fare model change things?
It puts pricing on the driver. You need to know your cost per kilometre before deciding, which is an advantage if you have calculated it and a trap if you have not.
Should I accept low offers to stay busy?
No. Utilisation feels productive and below-cost work is not. Declining unprofitable trips earns more over a month than accepting everything.
What about the distance to the passenger?
It is unpaid and has to be built into what you accept. A short trip starting fifteen minutes away is usually not worth taking.
Why keep trips on the platform?
An off-platform trip has no record, no insurance position and no support. It is the arrangement in which drivers are most exposed.
Vehicle requirements, platform terms, operating licence rules and tax obligations are set by the platform, the provincial regulatory entities and SARS, and are revised. Confirm current requirements with each.