CAIRO: The runaway growth of Uber and Careem in Egypt threatens to turn to gridlock as the pair try to navigate though new rules that have provoked a storm of controversy.
Now thousands of drivers who depend on the company for work fear their livelihoods will be affected by new regulations.
The pair are fighting a battle on two fronts in one of the region’s fastest growing markets.
Under pressure to share their customer data with the authorities they also face opposition from traditional taxi companies who fear their livelihoods are now under threat.
“We need to avoid high tariffs for the companies so that it doesn’t affect the financials of the drivers. If the driver is affected, prices will rise, and hence the rider will be burdened.
“We need to achieve the right equilibrium of having operating fees but within the normal ranges,” said Ramy Kato, managing director of Careem in Egypt.
The new draft law has also stirred controversy in the capital because of fears that it will increase fares and restrict drivers.
It would also require Uber and Careem to house their servers inside Egypt and to link their data to “relevant bodies” in government — a move considered by many drivers and customers to be a breach of privacy.
Uber and Careem drivers expressed anger over the new regulations which includes the power to jail drivers without the correct legal documents.
It also prevents government employees from working for Uber and Careem. Many public sector workers in Cairo top up their salaries with driving work.
The problems for the two companies started last month when an Egyptian court issued an order banning them from operating for using privately-owned vehicles for commercial purposes.
The case was filed against the two operators as well as the government.
Judicial sources said that the court decision would be implemented and that the companies must cease their services pending a final ruling.
“Amid several protests from the taxi drivers with no official response, those drivers decided to direct their issue to the court and that’s why I helped them,” said Khaled El Gamal, the lawyer who filed the widely-reported case against Uber and Careem.
“For seven years, some 300,000 taxi drivers faced a lot of issues. Then came Uber in 2013 to make their problems even worse and those foreign companies had no licenses to operate in Egypt.”
The doubts hanging over the companies’ operations in Egypt is giving the city’s army of private drivers sleepless nights.
“I left my call center job to have my own business,” said Osama Ahmed, a Careem driver. “This is the source of my income today.
“My business with Careem has been growing and I have become solely dependent on it.”
Passengers who depend on the pair to navigate through the city’s notoriously congested streets are also worried about the impact the draft law could have on fares as well.
Cairo is one of Uber’s fastest growing markets with more than 40,000 drivers in 2016. Last year Uber was adding as many 2,000 drivers a week in the country.
Despite what appears to be a bleak outlook for Uber and Careem in North Africa’s most populous city, the pair are used to navigating around regulatory roadblocks.
“We have seen the same scenarios in each of the 13 countries we are operating in and we usually resolve and clear issues through discussions,” said a sanguine Kato.
Uber, Careem stuck in Cairo legal gridlock
Uber, Careem stuck in Cairo legal gridlock
- Under pressure to share their customer data with the authorities they also face opposition from traditional taxi companies.
- New draft law has also stirred controversy in the capital because of fears that it will increase fares and restrict drivers.
Saudi investment pipeline active as reforms advance, says Pakistan minister
ALULA: Pakistan’s Finance Minister Mohammed Aurangzeb described Saudi Arabia as a “longstanding partner” and emphasized the importance of sustainable, mutually beneficial cooperation, particularly in key economic sectors.
Speaking to Arab News on the sidelines of the AlUla Conference for Emerging Market Economies, Aurangzeb said the relationship between Pakistan and Saudi Arabia remains resilient despite global geopolitical tensions.
“The Kingdom has been a longstanding partner of Pakistan for the longest time, and we are very grateful for how we have been supported through thick and thin, through rough patches and, even now that we have achieved macroeconomic stability, I think we are now well positioned for growth.”
Aurangzeb said the partnership has facilitated investment across several sectors, including minerals and mining, information technology, agriculture, and tourism. He cited an active pipeline of Saudi investments, including Wafi’s entry into Pakistan’s downstream oil and gas sector.
“The Kingdom has been very public about their appetite for the country, and the sectors are minerals and mining, IT, agriculture, tourism; and there are already investments which have come in. For example, Wafi came in (in terms of downstream oil and gas stations). There’s a very active pipeline.”
He said private sector activity is driving growth in these areas, while government-to-government cooperation is focused mainly on infrastructure development.
Acknowledging longstanding investor concerns related to bureaucracy and delays, Aurangzeb said Pakistan has made progress over the past two years through structural reforms and fiscal discipline, alongside efforts to improve the business environment.
“The last two years we have worked very hard in terms of structural reforms, in terms of what I call getting the basic hygiene right, in terms of the fiscal situation, the current economic situation (…) in terms of all those areas of getting the basic hygiene in a good place.”
Aurangzeb highlighted mining and refining as key areas of engagement, including discussions around the Reko Diq project, while stressing that talks with Saudi investors extend beyond individual ventures.
“From my perspective, it’s not just about one mine, the discussions will continue with the Saudi investors on a number of these areas.”
He also pointed to growing cooperation in the IT sector, particularly in artificial intelligence, noting that several Pakistani tech firms are already in discussions with Saudi counterparts or have established offices in the Kingdom.
Referring to recent talks with Saudi Minister of Economy and Planning Faisal Alibrahim, Aurangzeb said Pakistan’s large freelance workforce presents opportunities for deeper collaboration, provided skills development keeps pace with demand.
“I was just with (Saudi) minister of economy and planning, and he was specifically referring to the Pakistani tech talent, and he is absolutely right. We have the third-largest freelancer population in the world, and what we need to do is to ensure that we upscale, rescale, upgrade them.”
Aurangzeb also cited opportunities to benefit from Saudi Arabia’s experience in the energy sector and noted continued cooperation in defense production.
Looking ahead, he said Pakistan aims to recalibrate its relationship with Saudi Arabia toward trade and investment rather than reliance on aid.
“Our prime minister has been very clear that we want to move this entire discussion as we go forward from aid and support to trade and investment.”
