Egypt court orders Uber and Careem to cease operations

Mar 25, 2018, 00:47
Egypt court orders Uber and Careem to cease operations

An Egyptian court ordered the suspension of licenses for ride-hailing companies Uber and Careem Tuesday, ruling on a lawsuit filed by taxi drivers seeking to shut down the two firms' operations in the country, judicial sources said.

In a phone interview to the privately run TV Channel One, he said the issued verdict regarding the suspension of Uber and Careem services inside Egypt is considered a preliminary step that can be appealed, noting the cabinet did not receive any copy of the verdict.

In response to the court order, Uber issued a press statement saying "We respect the ruling of the Egyptian judiciary, but we can not give a detailed comment on ongoing procedures; we will appeal to the court and it is important to make it clear that the decision does not mean the suspension of Uber's driving service in Egypt".

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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.

But both companies said their operations have not been officially suspended.

"We are fully committed to working with the entire sector - including taxis - to improve mobility in Egypt together", Uber said.

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The San Francisco-based company said past year it was committed to Egypt despite challenges presented by sweeping economic reforms and record inflation. "We are now investigating the details of the Egyptian Administrative Court ruling regarding the licensing of the ride-sharing industry", read the statement. In October, Uber announced United States dollars 20 million of investment in its new support centre in Cairo.

"Over the last three years, the Government of Egypt, in cooperation with the Ministry of Investment and International Cooperation, and the Ministry of Transportation, started to consult and work with all stakeholders, including Careem and other ride-hailing companies, to develop the best legislative practice and regulatory framework for ride-hailing services in Egypt". Uber is appealing against the decision.

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