Legislative Update: Regulation of Ride-Hailing and Smart Transport Services in Jordan (2025)

Introduction 

The Jordanian Cabinet, chaired by Prime Minister Jaafar Hassan, has approved the Regulation for Organizing Passenger Transport Using Smart Applications for 2025. This regulation introduces a comprehensive framework for ride-hailing (hail-riding) commercial activities, such as Uber, Careem, and local smart transport operators, aligning the sector with Jordan’s digital economy and investment goals. 

The reform seeks to modernize the legal environment for app-based ride services, encourage competition, and attract both local and foreign investment into the growing smart transport market. 

Key Features of the 2025 Regulation 

1. Market Access for Ride-Hailing Companies

• The ban on new licenses under the previous regime has been lifted. 
• Ride-hailing companies (hail-riding operators) may now apply for licenses, opening the sector to local startups and international platforms. 

2. Unified Bank Guarantee

All licensed companies, including ride-hailing operators, must provide a JOD 100,000 bank guarantee, ensuring financial capacity and seriousness. 

3. Competition and Consumer Benefits

• Increased competition among ride-hailing apps is expected to improve pricing, service quality, and operational efficiency. 
• The regulation provides clear legal pathways to combat unlicensed or informal hail-riding activities. 

4. Safety and Operational Standards for Hail-Riding Vehicles

• Vehicle age limited to 7 years from manufacture. 
• Mandatory electronic tracking systems and official decals. 

Drivers (“captains”) must: 

1. Be under 65 years of age. 
2. Hold a valid driving license for at least 3 years. 
3. Complete a certified training course through company training centers. 
4. Be medically fit, of good conduct, and own the vehicle (or have a close relative as owner). 
5. Data Protection and Regulatory Oversight

Ride-hailing companies must: 

1. Install self-monitoring systems in vehicles. 
2. Submit fare and commission structures for regulatory approval. 
3. Sign binding agreements for data sharing and electronic integration with the Transport Regulatory Authority. 
4. Comply with the Personal Data Protection Law and the Cybersecurity Law, ensuring safety and confidentiality of user data. 

6. Accessibility and Social Responsibility

Ride-hailing platforms must dedicate vehicles for persons with disabilities, provide promotional packages, and maintain complaint management systems.  Companies must operate training centers to continuously qualify drivers. 

7. Insurance Obligations

All hail-riding vehicles must be insured with coverage beyond mandatory minimums, specifically tailored to smart transport services. 

8. Transition Period

Existing ride-hailing operators have six months from the regulation’s effective date to comply with the new requirements. 

9. Taxi Office Integration 

The regulation also introduces flexibility for traditional taxi offices: 

1. Taxi offices entering the hail-riding sector are exempt from the JOD 100,000 capital requirement. 
2. They are also exempt from the execution bond requirement. 
3. This integration aims to create a level playing field between ride-hailing companies and licensed taxi operators. 
4. Enforcement Against Unlicensed Ride-Hailing Apps 

The Telecommunications Regulatory Commission (TRC), in coordination with the Transport Regulatory Authority, will block unlicensed ride-hailing applications or websites that operate without authorization. 

Strategic Implications for Investors 

1. Market Growth: The legal framework opens Jordan’s ride-hailing sector to new players, offering opportunities for both local startups and global brands. 
2. Compliance Duties: Investors must carefully align with safety, data protection, and operational standards. 
3. Consumer Trust: Enhanced regulation improves passenger confidence, supporting sector growth. 
4. Economic Impact: The reform is expected to create jobs and stimulate related industries such as automotive services, insurance, and ICT. 

Jaradat Lawyers’ Role 

As one of the leading law firms in Jordan, Jaradat Lawyers assists ride-hailing companies, investors, and transport operators in: 

1. Securing licenses for hail-riding commercial activities under the new 2025 framework. 
2. Advising on compliance with safety, insurance, and data protection requirements. 
3. Representing clients before the Transport Regulatory Authority and TRC. 
4. Structuring contracts with drivers, service providers, and regulators. 
5. Supporting international platforms and local operators entering Jordan’s regulated ride-hailing market. 

Conclusion 

The 2025 Regulation on Smart Transport and Ride-Hailing marks a significant evolution in Jordan’s transport law, providing a legal framework that balances innovation, investment, safety, and consumer rights. By formally licensing hail-riding commercial activities, Jordan is paving the way for expanded competition, new investment opportunities, and integration of technology into public transport. 

For foreign investors, app-based transport platforms, and local operators, early compliance and strategic licensing are essential to capitalize on the opportunities created by this new regime.