Al-Zuwayed clarified that businesses offering motorbike delivery services had earlier received licenses under an experimental regulatory phase, This period has now ended, though, indicating a move towards a more permanent regulated system, This choice reflects Saudi Arabia 's growing need for delivery services, especially in relation to and during the COVID-19 epidemic, which saw a surge in delivery platforms and notable corporate expansion in this sector.

Security authorities' stated issues are a main cause of this stop in new permits. Recently detained several delivery motorcycle drivers in Riyadh were either lacking proper work permits or broke traffic laws. This crackdown has underlined the need of tougher rules to guarantee the legality and safety of these services, which forces the TGA to review the current delivery application and motorbike usage policy.

Driven by increasing reliance on electronic platforms for food, grocery, and retail deliveries, the COVID-19 epidemic produced a significant spike in delivery services throughout Saudi Arabia, Along with creating a lot of employment in the delivery industry, this fast development created major chances for companies and investors, The number of motorbikes running in the light goods transportation sector expanded alongside the demand for delivery services.

Al-Zuwayed claims that the activity of light goods transportation services rose by 38% in the first quarter of 2024 as opposed to the same time in 2023, This development shows the increased reliance on motorbikes for quick and effective delivery services, which has driven up the quantity of businesses and licenses in this industry. Eighty Saudi Arabian enterprises run under delivery applications under licenses awarded during the testing stage right now. By the first quarter of 2024, the TGA issued about three hundred official licenses for light goods movement.

The business of delivery services has grown to be rather important for Saudi Arabia. With 4,700 registrations, up from 2,900 in the same time in 2023, commercial registrations in the light goods transport business showed a 61% rise by the end of the first quarter of this year, The application development sector reflects this expansion as well; by the end of the first quarter, commercial registrations rose 45% and now stand at 11,424,000. This suggests not just an increase in demand for delivery services but also a development of companies and technologies enabling these ones.

The Saudi government's larger endeavor to control and simplify the growing delivery sector includes the choice to stop issuing fresh permits. The fast development of delivery systems makes it more crucial to make sure the businesses and people engaged are running under a legal framework that gives compliance with traffic rules, safety, and efficiency first priority, The forthcoming rules are supposed to give the industry a better framework and guarantee that it keeps expanding in a sustainable and under control.

With an eye on safety and legal compliance, the TGA's next actions will be developing more all-encompassing rules that meet the demands of the light goods movement, These rules will probably cover matters including operating guidelines for businesses employing motorbikes for deliveries, traffic safety, and work licenses, Companies will be allowed to apply for new licenses once the new framework is in place, therefore assuring that the sector of delivery services can keep expanding while upholding strict criteria of safety and efficiency.

The halt on new motorbike licenses shows the Saudi government's will to enhance the regulatory environment for a quickly expanding sector, These forthcoming rules will be very important in determining the direction of the industry as the nation keeps adjusting to the needs of modern delivery services, therefore guaranteeing its sustainability and safety for all those engaged.

Saudi Arabia stops issuing new licenses for motorcycle deliveries

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