The Saudi Transport General Authority (TGA) has temporarily halted the issuance of new licenses for motorcycles used to deliver orders through mobile apps, pending the release of new regulations. This was confirmed by the authority’s spokesman, Saleh Al-Zuwayed.
Companies that previously obtained licenses to offer delivery services via motorcycles during the experimental regulatory phase will no longer be able to do so, as this phase has now ended, Al-Zuwayed told Al-Eqtisadiah newspaper.
It is worth noting that security authorities in Riyadh have arrested several delivery bike drivers found without work permits or in violation of traffic safety rules.
Following the COVID-19 pandemic, Saudi Arabia saw a significant expansion in delivery services through electronic platforms. This boom created numerous investment and business opportunities, as well as jobs within the rapidly growing sector.
Al-Zuwayed also mentioned that the growth in light freight transport, including motorcycle deliveries, saw a 38 percent increase in the first quarter of this year compared to the same period in 2023. Currently, there are 300 official licenses for light freight transport and 80 companies in Saudi Arabia engaged in delivery app services, having joined the experimental regulatory environment launched by the authority last year.
By the end of the first quarter this year, commercial registrations grew by 61 percent, reaching 4,700, compared to 2,900 in the same quarter last year. Similarly, the application development sector saw a 45 percent rise in commercial registrations, totaling 11,423 by the end of the first quarter.