Transportation authorities regulate delivery apps: refunds and number blocking
In a move aimed at reorganizing the logistics sector and improving the quality of services provided to users, the Public Transport Authority in Saudi Arabia has released a draft of significant amendments to the executive regulations governing delivery applications through the "Istilaa" platform. These actions are part of the Authority's ongoing efforts to address regulatory gaps that have emerged with the rapid expansion of this vital sector.
Financial guarantees and privacy protection
The most significant aspect of the new amendments is the direct strengthening of consumer rights. The draft law stipulates the customer's right to a full refund if the vehicle specifications or the driver's actual identity differ from the information registered in the application. This measure is clearly aimed at combating the phenomenon of account rentals and operating under false names, thereby increasing reliability and security.
In the context of protecting personal data, the new regulations prohibit drivers from directly accessing customers' phone numbers, restricting communication between the two parties to channels available within the application only. This step represents a significant leap forward in privacy standards and closes the door to any potential harassment or misuse of users' data outside the scope of the service.
Verification and anti-cover-up techniques
The authority did not stop at administrative controls; it also introduced technological solutions as a mandatory element, requiring the activation of facial recognition technology to verify the driver's identity before the start of their daily work. It also emphasized the mandatory technical integration with the "Nafath" platform when registering Saudi drivers, which ensures official identity verification and prevents fraud.
The context of rapid growth and the importance of regulation
This regulatory move comes in response to the tremendous growth witnessed by the delivery sector in the Kingdom over the past few years, particularly after the COVID-19 pandemic, which altered consumer behavior and increased reliance on technology. This rapid expansion was accompanied by some challenges, such as the influx of undocumented workers violating labor regulations, necessitating decisive intervention from the legislature to regulate the market.
These amendments carry significant economic and security dimensions. Economically, they contribute to combating commercial concealment and the informal economy, thus opening up opportunities for citizens to benefit from self-employment in a fair and competitive environment. From a security perspective, the strict verification of drivers' identities enhances community safety and ensures that the relevant authorities are aware of who is providing services within residential neighborhoods.
Deterrent penalties for violators
To ensure compliance, the amendments granted the Violations Review Committee broad powers, including imposing financial fines exceeding 10,000 riyals. Penalties may reach the suspension of the license for a year or its permanent cancellation for establishments that are lax in applying safety and transparency standards, which confirms the Authority’s seriousness in applying the new standards without leniency.
