News, Software

Egypt lifts ban on Uber and Careem

An Egyptian court ruled to revoke the suspension of the licenses of ride-hailing companies Uber and Careem, allowing them to continue their work, Reuters reports citing judicial sources said.

In March, the administrative court ordered the government to suspend the licenses of the two companies.Careem, Pakistan

Forty-two Egyptian taxi drivers filed a lawsuit a year ago against US-based Uber and its Dubai-based competitor Careem, arguing they were illegally using private cars as taxis.

They also claimed that the two firms were registered as a call centre and an Internet company, respectively.

However, the two companies applied to another court, the Cairo Court of Urgent Matters, which said on Saturday that the previous ruling should be suspended and the two firms should be allowed to continue work until a final decision from the Highest Administrative Court, said the Reuters report.

The March decision had not yet been applied, according to judicial sources.

The government appealed against the March ruling before the Highest Administrative Court. Uber followed suit.

Careem said it had not received any official request to stop operations in Egypt, and continued to do business as normal.

The government has sent parliament a draft law to regulate web-based transport services. It is not clear when that will be passed.

Uber said Egypt is its largest market in the Middle East, with 157,000 drivers in 2017 and 4 million users since its launch there in 2014.

The San Francisco-based company said last year it was committed to Egypt despite challenges presented by sweeping economic reforms and record inflation. In October Uber announced a $20 million investment in its new support centre in Cairo.

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