In what is likely to be a huge blow to the two ride hailing platforms in Egypt, Uber and Careem, the North Afrikan country's Administrative Court has issued a verdict that they should be prohibited from operating. The verdict was handed down on 20 March 2018 and is effective with immediate effect.
So far both ride hailing platforms have not issued clear statements on what the next steps will be with Careem saying via their Facebook page that they haven't been officially notified of the ruling thus operations continue as per normal, while Uber has stated that it will issue a statement in due time.
Earlier in February 2017 Egypt's taxi drivers took to the country's Administrative Court to file a lawsuit against Uber and Careem. In filing with Egypt's Administrative Court they stated that both Uber and Careem are unfair competition and reasoned that that the requirements for drivers on ride-hailing platforms are vastly different compared to what the authorities expect them, taxi drivers, to comply with. As a result, Egypt's Administrative Court has banned Uber and Careem stating that they violate Egyptian law.
Despite the ban being implemented with immediate effect, the two rude hailing platforms have the option of appealing it at Egypt's Administrative Court. Egypt's policymakers have previously looked into regulating ride-hailing platforms in the country, but so far nothing has come of any of the comittees previously formed to look into this.
Egypt is Uber's largest market in Afrika. So big is Egypt on Uber's map that the ride hailing platform confirmed that in 2017 it had reached the milestone of 150,000 registered drivers in the North Afrikan country. Uber had even more planned for Egypt having announced that it will be launching its Uber Eats service in the country later in 2018. Added to that, it had also indicated in 2017 that it will be launching Uber Pool in Egypt to expand the available choices it offers to customers, especially those who are price conscious.