A Win In Egypt For Careem And Uber

By  |  April 9, 2018

There is jubilation in Cairo for both Careem and Uber after a successful appeal ruling from Egypt’s Court of Urgent Matters. Last month, WeeTracker reported that the two ride-hailing services had their operating licenses revoked after Egypt’s Administrative Court ruled in favour of 42 taxi drivers. The drivers petitioned the court to cancel both their operating licenses in the North African country.

The aggrieved drivers remonstrated the unfair and preferential treatment applied to the two ride-hailing companies. Moreover, Egypt is not the first country where ride-hailing has experienced disgruntlement from local taxi drivers – Uber is currently in the process of appealing their ban in London. Nevertheless, this win is sure to boost their hopes of other successful appeals.

The win in Egypt is not only crucial because it holds some hope for other successful appeals, but the North African country is a strategic market because of its location in Africa and proximity to Middle Eastern markets. Uber has described Egypt as its largest market in the region with over 157,000 registered drivers and a growing base of over 4 million users since its launch in 2014.

In light of their successful appeals, Careem and Uber are both awaiting the final decision on draft legislation submitted to Egypt’s cabinet. The bill would adjust transport laws to allow companies like Careem and Uber to carry on doing business by regulating web-based transport services.

With hefty investments by both ride-hailing companies and the recent judicial victory both Careem and Uber look like they are there to stay.

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