Editorial: Rethinking ride-hailing beyond fatigue

The government’s plan to begin enforcing working-time limits for cab drivers is a welcome, if overdue, step toward improving road safety.

The proposed legislation, set to give Transport Malta the authority to clamp down on drivers working dangerously long shifts, comes after growing concern that some operators are clocking marathon hours behind the wheel.

But, while necessary, this is only one part of a much bigger problem.

There is no doubt that ride-hailing cabs in Malta have brought about a necessary shift in transport. 

Since gaining ground around 2010, this app-based transport solution has helped break the monopoly of outdated taxi markets, improved safety and accountability  and made it easier for people to get around. The goal, then, should not be to fight ride-hailing but to guide it. And that means tackling the deeper flaws in the system.

At the core of the problem is fragmentation. Various government entities, Transport Malta, JobsPlus, the Department for Industrial and Employment Relations (DIER) and the Commissioner for Revenue are each responsible for different aspects of regulation.

But they rarely operate in real time, let alone in sync. This disjointed oversight has created fertile ground for abuse. We have seen numerous reports highlighting the wide spectrum of irregularity that has been allowed to spread in this industry. 

A simple limit on working hours will not address the root causes of exploitation of vulnerable workers, nor will it restore fairness or safety to a sector that has ballooned without sufficient oversight.

The government has the opportunity to go further, to lead with a holistic, technology-driven reform that can serve as a blueprint for other industries facing similar abuse, such as food delivery and even the broader construction industry.

Consider the facts: third-country nationals are often registered as employees with so-called fleet owners but, in reality, operate under obscure and legally questionable revenue-sharing models.

Times of Malta has reported how this allows fleet owners and drivers to evade national insurance contributions and income tax, while also encouraging drivers to work dangerously long hours.

Meanwhile, cash transactions and unregulated vehicle purchases raise serious concerns about potential money laundering. And, in the midst of it all, ride-hailing platforms exploit fiscal loopholes to undercut fair competitors and siphon profits without paying VAT.

Fixing this requires more than enforcement. It requires integration.

The government should mandate that ride-hailing platforms share real-time trip data with a centralised, online system, accessible by law enforcement, tax authorities, the transport watchdog and labour regulators.

This data would detail drivers, routes, fares and payment methods and enable instant checks on safety, employment classification and revenue declarations.

This is not only technically possible; it is already legislated for at EU level.

In reality, this isn’t just about ride-hailing. Malta needs a model of enforcement that tears down the silos between regulators and enables intelligent, digital governance.

The construction sector is another area plagued by illegal labour, tax evasion through under-declaration and unsafe working conditions.

A unified, real-time compliance model pioneered in transport could be replicated across the economy in high-risk areas. In the face of growing safety concerns, building collapses and relentless reports of worker abuses, now is the time for the government to truly lead by example. 

This moment is an opportunity to move from fragmented enforcement to unified oversight, powered by technology, backed by law and driven by fairness.

Malta can be a pioneer in regulating the gig economy not by patching holes but by rebuilding the system from the ground up.

What’s needed is not just a crackdown on tired drivers. It’s a crackdown on tired systems.