Egypt has issued new regulations to govern ride sharing apps such as Uber and Careem in a bid to further legalize the services.
According to the new law the ride-sharing companies have to obtain five-year renewable licenses for a fee of $1.71 million (EGP30 million) and their drivers will have to pay annual fees to attain special licenses to work with these companies.
In March this year the Egypt government passed a ruling halting ride-hailing services—Uber and Careem—in the region after a group of local tax drivers registered a complaint claiming that their drivers were using private cars illegally to run these services. Later in the same month, another court put a stay on the ruling, allowing both Uber and Careen to continue servicing in the country until the case was appealed.
Earlier this year Dubai-based Careem received a regulatory approval from Abu Dhabi to charge rates that will make the cost of journeys using its ride sharing platform in the capital closer to what it is in Dubai.
“Today's vote and passage of the ride-hailing law marks a remarkable step for Egypt, Careem and our region,” a Careem spokesperson said.
“It is the first time in any of Careem's operating markets that a regulatory framework for ride-hailing has emerged from a consultative legislative and parliamentary process.
“In passing the law, the Egyptian government and Parliament sends out a strong signal that Egypt continues to be open for business and investment and is a hub for innovation and the technology ecosystem.”
Ride-hailing apps have run into various regulatory issues in their focus markets.
Last October Transport for London banned Uber from operating in the city, while the ride-hailing giant appealed against the ban and till now continues operating, waiting for the final hearing.