CAIRO: An Egyptian court has reportedly ruled out the earlier verdict of suspension of licenses of online cab booking services UBER and Careem. The court has allowed both cab service companies to continue their operations in Egypt.
Lawsuit Against Online Cab Booking Service
A year ago, forty-two Egyptian taxi drivers filed a lawsuit in the administrative court against UBER and Careem, the renowned global taxi services blaming them for using private cars as taxis illegally. They also believed that both companies are registered as a call center and internet company respectively.
Following the case, in March, the administrative court ordered the government to cancel the licenses of the two companies. In response, Careem and UBER consulted the Cairo Court of Urgent Matters, which confirmed recently, that the previous verdict should be suspended and the two firms should be allowed to operate until a final verdict comes from the Highest Administrative Court.
According to judicial sources, the March decision had not been applied. The government appealed against the March verdict before the Highest Administrative Court. UBER followed suit, however, Careem expressed that they had not received any official request to stop their operations and are currently operating regularly. The Egyptian government has sent a law draft to the parliament to regulate web-based transport services. It is not officially passed though.
According to UBER, Egypt is its largest and fastest growing market in the Middle East, with 157,000 drivers in 2017 and 4 million users since they are launched back in 2014. UBER has faced regulatory and legal hindrances around the world among opposition from traditional taxi services. They have been forced to quit their operations in countries like Hungary and Denmark.
UBER is facing the backlash in London city as well, where their license was also suspended. UBER however appealed against the decision in the court.