Egypt court stops Uber and Careem from operating in country

 

CAIRO: An Egyptian court on Tuesday ordered authorities to revoke the operating licenses of the Uber and Careem ride-hailing services and block their mobile apps and software.

The two services had sparked protests by taxi drivers who complained that their drivers were not required to pay the hefty fees to operate transportation vehicles.

The administrative court in Cairo ruled that it is illegal to use private vehicles as taxis.

Both companies provide smartphone applications that connect passengers with drivers who work as independent contractors.

In a brief statement posted on its Facebook account, Careem said it “hasn’t been notified officially to stop its operations” and was operating normally.

Uber was founded in 2010 in San Francisco, and operates in more than 600 cities across the world. Careem was founded in 2012 in Dubai, and operates in 90 cities in the Middle East and North Africa, Turkey, and Pakistan.

The applications took off in Cairo, a city of 20 million people with near-constant traffic and little parking. The services have recently started offering rides on scooters and tuk-tuks, three-wheeled motorized vehicles that can sometimes squeeze through the gridlock.

The apps are especially popular among women, who face rampant sexual harassment in Egypt, including from some taxi drivers. Cairo’s taxi drivers are also notorious for tampering with their meters or pretending the meters are broken in order to charge higher rates.

In 2016, taxi drivers protested the ride-hailing apps. They have complained that Uber and Careem drivers have an unfair advantage because they do not have to pay the same taxes or fees, or follow the same licensing procedures.

The court accepted a petition by a lawyer demanding the government stop licensing Uber and Careem activities in Egypt, including their online applications, state-owned newspaper Al-Ahram reported on its website.

The lawyer representing taxi drivers, Khaled al-Gamal, told a French wire service that the ruling would have to be implemented by the government even if Careem and Uber appeal.

“They have to stop operations and block their mobile applications on the internet,” he said.

But both companies said their operations have not been officially suspended.

Uber Egypt’s general manager Abdellatif Waked said: “We respect the rulings of the Egyptian judiciary.” But the company would appeal “and continue to be available in Egypt”.

“It is important to clarify that today’s verdict does not mean suspending the operations of Uber in Egypt,” Waked said, adding the firm could not comment on “ongoing legal proceedings”.

Many Egyptians who complain about taxi services, including drivers who refuse to turn on their meters or their air conditioning during the summer heat, had switched to the ride sharing apps.