An administrative court in Cairo ruled Tuesday in favor of stopping the services of ride hailing applications, Uber and Careem in Egypt, reported state newspaper al-Ahram on its site.
The decision came after 42 local taxi drivers filed a lawsuit in 2017, in which they claimed both companies had been violating Egypt's traffic laws by using private cars for commercial purposes.
The lawyer representing taxi drivers, Khaled al-Gamal, told a French wire service that the ruling would have to be implemented by the government even if Careem and Uber appeal. Uber had 2 million users in Egypt in 2016, giving jobs to 60,000 drivers, it said.
Uber intends to appeal any court decision to suspend ride sharing licences in Egypt, a source familiar with the matter said.
Meanwhile, the UAE-based company Careem said that it has not been officially notified of the suspension, and the company confirms it will continue its operations as normal. "We are committed to work with all parties in the transport system, including the white taxis, to develop this sector in Egypt", he said.
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"It is important to clarify that today's verdict does not mean suspending the operations of Uber in Egypt", Waked said, adding the firm could not comment on "ongoing legal proceedings".
The San Francisco-based company said a year ago it was committed to Egypt despite challenges presented by sweeping economic reforms and record inflation. In October, Uber announced Dollars 20 million of investment in its new support centre in Cairo.
It has had to make deals with local auto dealerships to provide its drivers with affordable vehicles and adjust its ride prices to ensure its workers were not hit too hard by inflation.
He also said that Uber has been working continuously over the past two years with the ministerial committee entrusted with the regulation of the ride-hailing system, and that the company will support the ride-hailing law. It has been forced to quit several countries, such as Denmark and Hungary. Uber is appealing against the decision.
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