On Sunday, the highest administrative court in Egypt removed a ban on ride-sharing firms Uber and Careem allowing them to resume their operations in the country. The traditional taxi drivers in Egypt are highly against the operations of these ride-sharing companies because it has heavily impacted their job.
In March 2018, after a lawsuit was filed by around 42 cab drivers in Egypt alleging that these ride-sharing companies were illegally using private cars as taxis and were registered as either an internet company or a call center, a lower administrative court immediately took away the permits of Uber and Careem that are necessary for operating in the country.
However, after one month, in April, the Cairo Court of Urgent Matters announced that these ride-sharing companies should be given back their permits for operating in the country until the top administrative court makes a concluding decision on the matter.
Ride-sharing companies, especially Uber have faced some severe legal challenges around the globe, chiefly because it harms the traditional taxi drivers. As a result, the service has been permanently banned by various countries such as Denmark and Hungary.
Egypt is currently Uber’s largest market in the Middle East and comprises of 157,000 drivers with around four million customers since its inception in the country in 2014.
Around last week, Uber entered into an agreement with the tax authority of Egypt agreeing to pay value-added tax from now on. Careem, on the other hand, has been paying VAT in the country since March of last year.
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