The Regulation of E-hailing Freight Transport Vehicles

Preamble

  • The regulation aims to organize the activity of vehicle guidance for the transportation of goods in a manner that ensures the provision of the best services to beneficiaries, enhances the level of quality and competitiveness, promotes collaborative services and oversight, and creates promising job opportunities for Saudi youth.

Part (I): Introductory Provisions

Article (1):

  • The following terms, whenever stated in this Regulation, shall have the meanings assigned herein, unless the context requires otherwise:

  • 1. Authority: The Transport General Authority

  • 2. President: The President of the Transport General Authority

  • 3. Regulation: E-hailing the freight transport vehicles Regulation

  • 4. Activity : The activity of e-hailing the freight transport vehicles

  • 5. Service : Practicing the activity through a technical system or a call center for the purpose of mediation to transport specific freight in a vehicle for the benefit of a beneficiary.

  • 6. Technical System: A website or an application designed to run on smartphones, computers or any other systems

  • 7. Carrier: Whoever performs the delivery process between the consignor and the consignee in accordance with the provisions of this regulation

  • 8. License : a document issued by the Authority authorizing the entity to practice the activity in accordance with the provisions of this Regulation

  • 9. The individual: every natural or legal person

  • 10. Establishment: Every legal personality that has a legal entity such as institutions and sole corporation

  • 11. Service Provider : The facility licensed to practice the activity by the Authority

  • 12. Person: Any natural person

  • 13. Consignor: The person who delivers the freight

  • 14. Consignee: The person who receives the freight

  • 15. Vehicle: the vehicle registered in the Authority

  • 16. Transport Parties: The Service Provider, Carrier, Consignor, and Consignee.

  • 17. The Beneficiary: The Consignor or the consignee contracted with the service provider.

  • 18. Driver: The natural person driving the vehicle to whom the provisions of this regulation apply

  • 19. Evaluation: Measuring the satisfaction of the beneficiary with the performance and quality of the transportation service provided by the driver and the vehicle if the service is available to the public.

  • 20. Freight: Any substance, commodity, equipment or other things that are not prohibited in the Kingdom of Saudi Arabia.

  • 21. Service Controller: The person or body entrusted to inspect and control violations to ensure compliance with the provisions of this Regulation and take the necessary procedure in the event of breach of any of them.

  • 22. Financial fines: Amounts imposed as a result of violating any of the provisions of this Regulation or the regulations of the Law of Public Transport on Roads.

  • 23. Financial Fees: The financial resources allocated to the Authority in return for issuing / renewing the license, operating cards, drivers’ cards, or any of the other services provided by the Authority.

  • 24. Law of Public Transport on Roads: The Law of Public Transport on Roads of the Kingdom of Saudi Arabia promulgated by the Royal Decree No. (M/25) dated 21/06/1397 H. as amended or updated.

  • 25. Traffic Law and its Executive Regulations: the Traffic Law issued by the Royal Decree No. (M/85) dated 26/10/1428 and its executive regulation, and any amendments thereto.

  • 26. The authority electronic platform: An electronic platform linked to the service provider, that enables the Authority to track vehicles automatically in real time and checking the legal status of the vehicle and the driver (WASL platform)

Article (2)

1- The provisions of this regulation shall apply to the activity of e-hailing the freight transport vehicles, this activity may not be practiced without obtaining a license, or after its expiry or cancellation, or during the period of its suspension.

2- The provisions of this regulation shall not apply to the types of freight determined by the Ministry of Interior and the relevant authorities in coordination with the Authority.

Article (3)

  • 1. The practice of activity is restricted to the establishments

  • 2. The application of the provisions of this regulation shall not prejudice what the licensee who is licensed to carry out the activity of freight transport is obligated to fulfill with the other obligations and conditions required of the driver or vehicle and the carrier in accordance with the regulation regulating the activity of e-hailing the freight transport vehicles, freight forwarding and renting trucks on land roads in force in the Kingdom of Saudi Arabia, and any amendments thereto or any conditions or requirements in any of the regulations issued under the public transport system.

Part (II): Licensing

Article (4)

  • First : In order for the establishment to obtain a license to practice the activity, it shall meet the requirements below :

    • 1. An application submitted by the entity through the Authority’s approved channels.

    • 2. A valid commercial register of the establishment includes the activity.

    • 3. A Trademark registration certificate for the technical system used to carry out the activity

    • 4. A valid social insurance certificate

    • 5. A valid Zakat and Income Certificate (if more than one year has elapsed after issuance of the commercial registration)

    • 6. Availability of the establishment’s technical system, linking and integrating it with the Authority’s electronic platform

    • 7. Appointing a responsible or an authorized person to communicate with the Authority, specifying the means of communication with him, and providing the national address of the establishment

    • 8. A financial guarantee amounting (250,000) two hundred and fifty thousand riyals in the name of the Authority ,with the exception of entrepreneurial businesses or establishments operating business incubators, in these cases, the financial guarantee shall be fulfilled after the elapse of the first year of licensing the establishment.

    • 9. Connection to the electronic systems determined by the Authority.

  • Second: Provided that the establishment fulfills all the conditions and requirements for issuing the license within a maximum period of (90) ninety days from the date of submitting the application, otherwise the application shall be considered null.

  • Third: Subject to what is stated in Paragraph (First) of this Article, the license shall be issued after payment of the financial fees and fines - if any - in the name of the establishment and for a period of three years.

Article (5)

The licensing conditions set forth in items (2,6,8) of clause “First” of Article(4) are inherent in the validity of the license. In the event of violating any of these conditions, the license shall be suspended, and the licensed individual shall not practice the activity until fulfillment of that condition, without prejudice to the Authority's right to impose the financial fine prescribed for that condition.

Article (6)

Taking into account what was stated in Paragraph (First) of Article (4), the license is renewed for a period of three years at the request of the service provider after paying the financial fees and fines - if any, provided that the submission of the renewal application and the fulfillment of all its conditions shall be during the period preceding the license expiration date by (180) one hundred and eighty days; otherwise, the application shall be considered void;

Article (7)

  • Subject to the provisions of paragraph (First) of Article (4), the license may be assigned with the same number and validity date to an assignee, according to the following controls:

  • 1. The Authority’s prior approval of the application of assignment;

  • 2. The validity of Zakat and Tax Certificate

  • 3. The assignee must fulfill all the conditions that must be met by those who are licensed to practice the activity;

  • 4. the license shall be valid upon submitting the application and until completion of the transfer of the license in the name of the assignee;

  • 5. the responsibility of the assignor licensee before the Authority shall continue until the transfer of the license is completed in the name of the assignee;

  • 6. Payment of the financial fines registered on the assignor and the assignee - if any

  • 7. Payment of the fees (if any) ;

  • 8. Not practicing the activity by the assignee until the license is issued in its name.;

  • 9. Fulfill all the conditions of assignment within a period of (90) ninety days from the date of the approval of the Authority and before the expiration of the date of validity of the license, otherwise the application will be considered null;

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