Back to the complete issue
Sunday, 24 February 2019

Ride-hailing apps get the green light from top administrative court

Top court strikes down challenge to legality of Uber, Careem: The Supreme Administrative Court overturned a ban on ride-hailing apps, allowing them to operate freely in Egypt, Reuters reported. The court accepted an appeal filed by Uber and Careem against a lower court ruling last March that saw the services banned after a group of taxi drivers claimed both companies were operating illegally by using private cars for commercial operations. Uber and Careem were allowed to continue under a Court of Urgent Matters ruling pending the Supreme Administrative Court ruling. Bloomberg also has the story this morning.

Ride-hailing companies can turn this page, but more awaits them: Uber, Careem and other companies are awaiting the executive regulations of the Ride-Hailing Act, which will likely introduce a new levy of EGP 2-5 per trip. Meanwhile, Uber and Careem are now charging and remitting VAT. They were also told by the Egyptian Competition Authority that a prospective combination of their businesses could violate Egypt’s competition act.

Egypt is a regional darling for both companies: Uber has said that it sees Egypt as one of its most promising markets in the Middle East and has launched a new bus service in Cairo. Careem said last year it was investing USD 100 mn in launching a bus service that it is currently expanding.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.