The recent controversy surrounding the impoundment of Uber affiliated taxis in Cape Town has highlighted the need for consumers to be more aware of who they do business with. Uber, an app-based transportation platform headquartered in San Francisco, California, launched in Cape Town last year. The company uses a smartphone application to receive ride requests, and then sends these trip requests to affiliated drivers.

The recent controversy over the impounding of Uber taxis in Cape Town highlights a new compliance challenge likely to surface around mobile apps that connect consumers with service providers, says Tamaryn Tesselaar of TNK Attorneys. “Uber’s popularity in Cape Town has increased exponentially owing to the affordability, user-friendliness and quality of its services. Uber is not a taxi operator however, despite the perception that it is.