Egypt suspended the licenses of ride-hailing companies Uber and Careem on Tuesday, in a court ruling after taxi drivers sought to shut down the two firms’ operations in the country, judicial sources said.
Tuesday’s ban order comes on the back of a suit by a group of taxi drivers claiming that these services were breaking the country’s traffic law by using privately-owned vehicles for commercial use.
The two ride-hailing services must immediately halt their operations following the order. The ruling can, however, be appealed before Egypt’s High Administrative Court, local media Egyptian Streets reports.
The two companies have faced protests from taxi drivers — Ahram Online
Uber started operations in Egypt in November 2014. It has since served as a source of income for many, with more than 30,000 drivers using the device.
The United Arab Emirates-based Careem which operates across 14 countries the Middle East, also launched in Egypt in 2014.
The two companies are yet to officially comment on the development.