The Saudi Transport General Authority (TGA) has announced the suspension of new licenses for motorcycles delivering orders through mobile applications, pending the release of new regulations. This decision was confirmed by Saleh Al-Zuwayed, spokesman for the authority.
End of Experimental Regulatory Phase
According to Al-Zuwayed, companies providing delivery services via motorcycles initially obtained licenses during an experimental regulatory phase. However, this phase has now ended, as reported by Al-Eqtisadiah newspaper.
Crackdown on Unlicensed Delivery Drivers
Security authorities in Riyadh have recently arrested several delivery bike drivers for lacking proper work permits or violating traffic safety regulations.
Expansion of Delivery Services Post-Pandemic
The outbreak of the COVID-19 pandemic led to a significant surge in delivery services across Saudi Arabia via electronic platforms. This sector has become a key area for investment, job creation, and business expansion.
Growth of the Light Freight Transport Sector
Al-Zuwayed highlighted that the light freight transport sector saw a growth of 38% in the first quarter of 2024 compared to the same period in 2023. This growth was accompanied by a rise in the use of motorcycles for delivery services.
Currently, there are 300 licenses issued for light freight transport activity, and 80 companies operate delivery applications in the Kingdom after joining the experimental environment launched by the TGA.
Increase in Commercial Registrations
Commercial registrations in the delivery sector grew by 61% by the end of Q1 2024, reaching 4,700 registrations compared to 2,900 in Q1 2023. Similarly, the application development sector experienced a 45% increase in registrations, totaling 11,423 by the end of the same period.
Conclusion
The suspension of new delivery bike licenses reflects the Saudi government’s efforts to regulate and improve delivery services. This change aims to ensure compliance with safety standards and promote sustainable growth in the booming delivery sector.
