Egypt court orders suspension of Uber
- Author: Joey Payne Mar 21, 2018,
Mar 21, 2018, 3:24
Egypt's administrative court issued a ruling on Tuesday stopping the operations of ride sharing apps Uber and Careem, state media reported.
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.
Tuesday's court decision, which should go into effect immediately, can still be appealed before Egypt's Higher Administrative Court.
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.
The government and the companies are expected to appeal the administrative court verdict, which would prevent it from being implemented until a higher court weighs in.
Uber and Careem have recently introduced taxi motorbikes and three-wheeled motorized rickshaws, known as "tuk-tuks", as new services in some areas in the most populous Arab country.
Egypt's investment ministry said past year that a draft law regulating web-based transport services would provide a legal framework for companies like Uber, but did not say when that bill was likely to be passed.
Taxi drivers have been angered because they are losing clients to both services, as many people are opting to use the two apps to commute in the capital and other cities.
Uber and other cab service providers have become really popular in African countries in the last five years. In October Uber announced a $20 million investment in its new support centre in Cairo.