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April 8, 2018

Uber avoids ban in Egypt over taxi driver lawsuit

by John_A

Uber has faced more than a few service shutdowns over legal issues, but it just dodged a bullet in Egypt… at least, for a while. A court has negated a decision that would have suspended the licenses of both Uber and its local rival Careem for allegedly violating transportation laws. A group of 42 taxi drivers had filed a lawsuit claiming that both ridesharing outfits were illegally using private cars as taxis, and that they’d registered under false pretenses (Uber, for example, reportedly registered as a call center). There’s still a final decision coming from the Highest Administrative Court, but that may not happen for some time.

The bigger concern may come in the long run. Egyptian leadership has sent Parliament a draft law that would regulate how ride hailing services operate in the country. What those requirements entail will depend on how the draft changes, but they won’t necessarily work out in Uber’s favor. The company recently halted UberX service in Athens, Greece precisely because it believed local rules could make service untenable. If Egypt passes legislation that would force Uber to dramatically change its business model, its court victories might not amount to much.

Source: Reuters

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