New Oversight Phase: Will Ride-Hailing Market Become More Regulated?

New Oversight Phase: Will Ride-Hailing Market Become More Regulated?
New Oversight Phase: Will Ride-Hailing Market Become More Regulated?
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Amman — Jordan’s smart transportation applications market is entering a new phase of regulation, as the Land Transport Regulatory Commission prepares to launch a field inspection campaign today. The move shifts the focus from correcting the status of companies and drivers to testing actual compliance with fares, vehicle licensing and driver permits.
اضافة اعلان
The campaign comes as the commission and licensed companies work to complete the requirements of the 2025 Passenger Transport Regulation through Smart Applications No. 74. Licensed drivers have called for tighter oversight to ensure fair competition and protect their rights, while companies operating in the market believe that curbing unlicensed activity could increase the share of trips received by compliant drivers.

Industry operators say the importance of the new measures goes beyond identifying violations, as their success will depend on achieving sustainable compliance, particularly through combining monitoring and financial penalties with incentives for companies that demonstrate high levels of compliance.

The Land Transport Regulatory Commission recently held an executive meeting with representatives of seven licensed smart-app companies: Uber, Careem, Jeeny, Petra Ride, Gojo, Taxi F and CAB. The parties agreed on measures related to fares, vehicle licensing, driver permits and field inspections.

According to the commission, inspection teams will begin requesting actual rides through the applications today to verify compliance with two conditions: the vehicle must be licensed to operate in the sector, and the driver must hold the required permit.

The commission has established a mechanism linking the number of violations to financial measures against companies. Ten violations in one week involving vehicle licensing or driver permits will result in JD5,000 being deducted from the company’s guarantee, while more than 20 violations in a single week will result in JD10,000 being deducted.

A violation involving the approved fare, meanwhile, will result in JD50,000 being deducted from the company’s JD100,000 guarantee, the commission said.

Oversight of fares has gained additional importance following the commission’s earlier confirmation that the 2025 instructions governing passenger transport through smart applications use the standard taxi fare plus 20% as the applicable tariff. The commission stressed that the 20% is a method for calculating the fare and does not represent a separate new increase.

Drivers: Oversight Protects Compliant Operators

Yousef Abu Odeh, an app-based driver and advocate for drivers’ rights, said licensed drivers view tighter oversight positively.

He noted that the new measures expand responsibility to companies and the extent to which they register drivers who meet the required conditions, rather than focusing solely on individual drivers.

Abu Odeh said there is a need for continuous oversight of companies to ensure compliance and protect the rights of licensed drivers and passengers. Employing drivers without the required permits, he said, puts compliant drivers at an unfair competitive disadvantage, particularly because they bear the costs of obtaining permits and maintaining legal operations.

According to Abu Odeh, drivers’ costs related to licensing procedures can reach around JD600, in his estimate, in addition to an annual JD20 fee. He also called for greater facilities for licensed drivers, reduced financial burdens and a review of the operational age limit for vehicles.

Driver Mahmoud Qweider, meanwhile, said licensing is essential to protect both drivers and passengers, particularly in cases involving accidents or disputes over rights.

However, he pointed to challenges facing some applicants seeking to complete licensing procedures, including requirements related to vehicle age and the number of years a driver has held a license.

Qweider called for a more flexible mechanism that would allow drivers who meet the requirements to work legally through applications. He proposed a unified annual subscription that would allow drivers to operate on more than one application rather than being tied to a single platform.

Companies: Curbing Unlicensed Activity Benefits Compliant Drivers

Mohammad Abu Tayeh, operations manager at Petra Ride, said the company supports inspection campaigns aimed at regulating the market, describing them as beneficial to licensed companies and drivers and helpful in addressing unlicensed activity.

He said the latest measures were coordinated between the Land Transport Regulatory Commission and licensed application companies to regulate the market and protect drivers’ rights. Drivers who meet licensing requirements and bear the associated costs, he added, should benefit from a more regulated market.

Abu Tayeh said reducing the activity of unlicensed operators could increase the share of trips received by licensed drivers and consequently improve their incomes. He noted that his company offers facilities and incentives to licensed drivers, including reduced commission rates on certain trips and other incentives.

He added that several challenges previously facing the sector had been overcome through cooperation between the commission and other authorities, including lifting previous limits on the number of companies and opening licensing to companies willing to meet the requirements without setting a specific numerical limit.

Jeeny, in response to questions from Al-Ghad, welcomed the Land Transport Regulatory Commission’s efforts to regulate the sector. The company said it remains committed to legally approved fares and continues to meet regulatory requirements related to drivers and vehicles.

The company said it had achieved an advanced level of driver licensing and, according to its statement, has the largest number of drivers meeting legal requirements in the market. It stressed that it would continue working to maintain high levels of compliance.

At the same time, Jeeny called for consideration of the impact of fares on passengers, particularly daily users, in order to strike a balance between the sustainability of the sector and keeping services affordable.

The company said clear requirements, their consistent and fair application to all market participants, and a combination of oversight and incentives would strengthen compliance and create a more stable and organized environment for companies and drivers, ultimately improving the quality of services provided to passengers.

It added that incentivizing companies with high levels of compliance would encourage them to continue investing in regulatory compliance and service development.

Jeeny identified the spread of unlicensed applications as one of the main challenges facing market regulation. It said their continued operation creates unfair competition with licensed companies that bear the costs and requirements of compliance, while the absence of regulatory frameworks and complaint-handling mechanisms could pose risks to passengers’ rights.

The company called for stronger coordination between the Land Transport Regulatory Commission and relevant government agencies to take enforcement measures aimed at limiting the operation of unlicensed applications.

The 2025 Passenger Transport Regulation through Smart Applications opened the market to new company licenses after eliminating a provision that had prohibited approval of new licenses. It also unified the bank guarantee required from companies at JD100,000.

The regulation introduced several compliance requirements, including limiting a vehicle’s operational age to seven years from its year of manufacture and requiring vehicles to be equipped with electronic tracking systems.

It also stipulates that service providers must be no older than 65 and must have held a driving license for at least three years, in addition to other requirements related to qualifications, fitness and insurance.

The regulation also requires companies to establish electronic connections and share data with the commission, while setting clear foundations for fares and commissions approved by the commission. Companies must also provide systems for receiving and handling users’ complaints and feedback.

From Penalties to Incentives

The new mechanism is not limited to penalties. The commission plans to publish the names of companies achieving high levels of compliance on its website, along with details of their progress in licensing vehicles and issuing driver permits.

The move is intended to use incentives alongside oversight to encourage companies to complete the process of correcting their regulatory status.

The commission has also allowed companies that exceed 3,000 drivers to make advance payments to register batches of 250 drivers instead of 1,000 per batch, with the aim of facilitating a gradual completion of registration procedures.

The new campaign builds on regulatory efforts launched earlier this year. In May, a commission oversight committee met with representatives of the Ministry of Interior, the Public Security Directorate, the Cybercrime Unit, the Ministry of Local Administration, the Companies Control Department and sector representatives to discuss ways of addressing applications and pages offering passenger transport services outside the licensing framework.

The key test for the new campaign will be reflected in the results of field inspections once they begin—not only in the number of violations recorded, but also in changes in the percentage of licensed vehicles and permitted drivers, the number of fare-related complaints and the extent to which unlicensed activity declines.

The smart-app market is therefore gradually moving from a phase of expanding licensing opportunities and correcting regulatory status to one focused on measuring compliance on the ground.

The extent to which companies respond and the results of the inspection campaigns in the coming period will determine whether the new measures can establish a more organized market that protects the rights of passengers, drivers and companies alike.

Source: Al-Ghad