Egypt court bans ride hailing apps, Uber and Careem

Egypt court bans ride hailing apps, Uber and Careem

Egypt court bans ride hailing apps, Uber and Careem

Egyptian cabinet spokesperson Ashraf Sultan said, Wednesday, the government would not suspend Uber and Careem services unless there is a final judicial verdict.

An administrative court in Cairo ruled Tuesday in favor of stopping the services of ride hailing applications, Uber and Careem in Egypt, reported state newspaper al-Ahram on its site. They acted by filing a lawsuit accusing both Uber and Careem of violating Egyptian traffic laws by using private cars for commercial purposes.

The court has accepted a petition asking the government to stop licensing Uber and Careem activities in Egypt, AFP explains.

Drivers of Egypt's white taxi cabs have protested against the two ride-hailing companies, who entered the market in 2014, after they began to lose customers.

Abdellatif Waked, Uber Egypt's general manager said that the San Francisco-based company is one of the largest participants in Egypt's growing economy.

Tuesday's decision was effective immediately, meaning the companies must suspend services pending a final ruling, although the companies have 60 days to appeal, the judicial sources said.

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Careem "affirms the continuation of operations normally and it (Careem) has not been officially notified of ceasing its operations", it said on Twitter.

"We are fully committed to working with the entire sector - including taxis - to improve mobility in Egypt together".

The two companies are yet to officially comment on the development. But the company would appeal "and continue to be available in Egypt".

The San Francisco-based company said previous year it was committed to Egypt despite challenges presented by sweeping economic reforms and record inflation. It has had to make deals with local auto dealerships to provide its drivers with affordable vehicles and adjust its fares to ensure its workers were not hit too hard by inflation.

"Over the last three years, the Government of Egypt, in cooperation with the Ministry of Investment and International Cooperation, and the Ministry of Transportation, started to consult and work with all stakeholders, including Careem and other ride-hailing companies, to develop the best legislative practice and regulatory framework for ride-hailing services in Egypt". It has been forced to quit several countries, such as Denmark and Hungary.

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