E-COMMERCE REGULATORY FRAMEWORK AND CHALLENGES OF RIDE HAILING BUSINESS ON SECURITY AND PAYMENT PROCESSING METHODS IN ADDIS ABABA

Abstract

E-commerce legal framework needs are a must to be built while access to and quality of Internet services have to be improved to fill the gaps in absence of online marketing platforms as well as to build confidence contributing to the key limitations in the ride hailing division. The objective of this study was to assess the existing e-commerce regulatory framework and challenges of ride hailing business on security and payment processing methods. Proper e-commerce law would create feasible environment. The drafted policy and manuals to launch e-commerce, draw lessons from the experience of Australia and India, particularly empirical findings show the connection of independent variables in security and payment processing methods getting articulated in the regulatory acts with priority. This fundamentally described these are basic measures taken to prevent misconducts. To achieve objective of this research, a descriptive and thematic methods were designed for quantitative and qualitative approaches respectively. The target populations of the research were ride hailing drivers found in selected sub cities of Addis Ababa, administration officers from Ride and Seregela TNCs and Addis Ababa Transport Bureau which are experts and has good understanding of the matter taken as key informants. The data was collected using structured questionnaire and semi structured interview which contained items that measure the existing regulatory framework and challenges of ride hailing business in relation to security and payment processing methods. After permission granted, the questionnaires were distributed to the respondents by telegram using Google forms links. Cronbach’s Alpha reliability test was used to test the internal consistency of the instrument. After the data collection, the collected data was entered into SPSS software version 20. This research revealed that the legislative requirement gaps detected in the e-commerce regulatory framework issues and ride hailing challenges related to security and payment processing methods which were mainly from the interviewees, are wrapped into three parts as matters of data presentation (security), issues of data availability/accessibility (Security/Payment processing methods) and capability of registered evidence consumption for reference (safety/security/ payment processing methods). From the collected data an analysis is deducted to address these matters which will provide wider acceptance in the accounting system, and also playing important role in promotion of the ride hailing business as well as the digital economy sector. Observed gaps in the legislative work believed to reduce security issues and payment processing methods which need to be further discussed. Issuance of e-receipts and their uses for future reference deprived of supporting legislative is another gap in the payment processing methods that is found to has an impact as a legal matter since its acceptance is low and considered as violation of a regulation in the accounting system, standing without supporting proclamation or law falling under safety concerns. In the studied organizations it was observed that the booking applications send automated e-mails containing e-receipts making the system exposed to legal breach. It’s advised that the required technical security and readiness are required to flourish the ride hailing business, these includes matters such as infrastructure, containing to form regulatory specifications and standards to be met and use of connectivity under service level agreements with the service provider. There also should be a need for regulatory requirements fulfillment in regard to systems and applications security.