RIYADH — The Transport General Authority (TGA) has warned that it may block delivery applications used by restaurants and online retailers that rely on manual dispatching methods or unlicensed vehicles. The authority stressed that violators will be subject to penalties, including the suspension of app operations, vehicle impoundment, and the deportation of drivers.
In a circular addressed to the Federation of Saudi Chambers and reviewed by Okaz newspaper, the TGA stated that a number of businesses—particularly online stores, retailers, restaurants, and supermarkets—are providing delivery services through mobile applications or manual dispatching systems without obtaining the required licenses or complying with regulations governing transport, postal services, and freight brokerage activities.
The authority further warned that delivery applications operating without the necessary licenses will be blocked. It clarified that companies selling their own products through online platforms and delivering them using either company-owned vehicles or third-party vehicles are required to obtain the appropriate vehicle licenses in accordance with the nature of their activities or engage licensed transportation providers. In addition, companies selling products they do not own must secure a “Delivery of Orders” license, along with all required licenses for the vehicles used in the delivery process.
The TGA noted that businesses engaged in electronic brokerage for the transportation of goods, without displaying or selling products themselves, must obtain an “Electronic Brokerage for Transporting Goods” license and comply with all associated regulatory requirements. It called on such establishments to regularize their status and adhere to sector regulations in order to avoid penalties and legal consequences.
The authority classified businesses into three categories. The first category includes companies that sell their own products through an online platform and deliver them using either company-owned vehicles or vehicles operated by contracted transportation providers. While these businesses are not required to obtain a license for the platform itself, the vehicles used to transport goods must hold the appropriate licenses based on the nature of the activity (light or heavy transport) if they are company-owned, or the company must contract with transportation firms licensed by the TGA.
Source: Saudi Gazette