Egypt bans ride sharing apps Uber and Careem

Egypt bans ride sharing apps Uber and Careem
A court accepted a petition by a lawyer demanding the government stop licensing Uber and Careem activities in Egypt, including their online applications.
2 min read
20 March, 2018
Uber had two million users in Egypt in 2016. [Getty]

Ride sharing apps Uber and Careem have been ordered to cease operations in Egypt, state media reported Tuesday, following a ruling by the country's top administration court.

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

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

Dozens of Egyptian taxi drivers filed a suit a year ago against the two companies arguing that they were illegally using private cars as taxis and that they were registered as a call centre and an internet company.

The lawyer representing taxi driver Khaled al-Gamal told AFP 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 told AFP.

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

Uber's representatives could not be reached immediately for comment.

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.

Careem, a start-up headquartered in the United Arab Emirates, operates in the Middle East and Asia.

Uber had two million users in Egypt in 2016, giving jobs to 60,000 drivers.

Last year Uber announced a $20 million investment in its new support centre in Cairo to shore up its commitment to Egypt amid national economic reforms.