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Thursday, 6 July 2017

Ride-hailing Apps bill misses the whole point of the share economy

Ride-hailing Apps bill misses the whole point of the share economy: It looks like the share economy model for ride-hailing apps is effectively dead under the Ride-hailing Apps Act, as the legislation appears to turn freelance drivers who pick their own hours and buy their own cars into paid employees with benefits. The law — which was approved by the Ismail cabinet in April — limits working hours for drivers to seven hours a day, unnamed government officials tell Al Borsa. Drivers will also have to obtain professional permits and badges for their vehicles. The law will also seek to set a standard base fare for all rides. Previous reports had stated that the law may include provisions for on-demand group transport on micro-buses. No word has yet been said about reports on ride-sharing companies having to divulge user data to the government.

The law comes as the industry is expected to see more growth. A new ride-hailing app for white taxis, Professional Taxi, is also set to launch this month on iOS and Android, the company’s CEO Mahmoud Ahmed says, Al Borsa reports. Meanwhile, Careem is looking to double its number of drivers in Egypt to 100k by year’s end, the company’s co-founder and CEO Mudassir Sheikha tells Al Mal.

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