A court ruling in Egypt ordered the suspension of Uber (US based) and Careem (Dubai based) services, effective immediately leading to a win for local taxis.
This ruling was as a result of a lawsuit filed a year ago by 42 taxi drivers from Egypt who claimed that these firms were using private cars unlawfully in place of taxis. According to a spokesman on behalf of Uber, there have been numerous limitations around the world and that Uber were expected to petition the presiding of the court, that is, within the 60 days set by the judicial.
The acting lawyer for the local drivers, Khaled al-Gammal said, “the court of law banned the two enterprises’ permits, barred their applications and put on hold private car use owned by UBER and Careem services.”
In response to the ruling, an Uber official stated that they will ensure the Egyptians will still enjoy on-demand transportation benefits. In addition, they will work with the transportation sector to ease transportation in the country.
UBER statement on Facebook
Careem statement on Facebook
With 157,000 drivers employed and nearly four million Uber clients by 2017, Egypt is Uber’s main market in the Middle East since its launch in 2014 and is also fast growing as stated by Abdellatif Waked, its country’s general manager. Also, to regulate the charges for their rides and offer their car users with affordable vehicles, several deals were made by the company to ensure low rates of inflation among its workers.
Uber departed countries like Hungary and Denmark due to similar legal and regulatory setbacks and was deemed unfit to run taxi services in London in 2017 and stripped of its operating license.
On 3rd of last month, Mohamed Salah, the Egyptian footballer was assigned as Uber’s brand ambassador. It resulted from a contract between MS Commercial and Uber Egypt being the initial player in sports to be the face of top Egypt’s ride-hailing technology. Salah remarks that, UBER in Egypt has led to a transformation in movement.