Riyadh, Saudi Arabia – In a significant move impacting the burgeoning delivery services sector, the Kingdom's Transport General Authority (TGA) has announced a suspension on the issuance of new licenses for motorcycle riders engaged in delivering orders through online applications. This pause will remain in effect until new regulations are established, as confirmed by Saleh Al-Zuwaid, the official spokesman for the TGA, in an interview with the Arabic daily, Al-Eqtisadiah.
Al-Zuwaid clarified that the only companies currently permitted to operate are those that had previously secured licenses during the experimental regulatory environment phase, which has now concluded. This decision comes as part of the TGA's initiative to refine the framework governing delivery services in the rapidly evolving landscape of e-commerce in Saudi Arabia. Recent reports from Al-Eqtisadiah revealed an increase in the enforcement actions taken by security authorities in Riyadh, who have begun arresting delivery bike drivers to ensure compliance with work permit documentation and traffic safety regulations.
This crackdown underscores the TGA's commitment to enhancing safety and regulation within the sector, which has experienced accelerated growth during the COVID-19 pandemic. The pandemic catalyzed a surge in electronic delivery services across the Kingdom, creating a wealth of investment opportunities and job openings. However, the recent suspension of new delivery bike licenses indicates a shift towards stricter oversight in an industry that has become essential to the daily lives of many Saudis. As the TGA prepares to unveil new regulations, stakeholders in the delivery services industry will be closely watching how these changes will shape the future of motorcycle delivery operations in Saudi Arabia.