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Uber avoids ban in Egypt over taxi driver lawsuit

Ahmed Mahmoud, 53, an Egyptian driver working for Uber Transportation Company in Egypt waits for customers on February 23, 2016 in Cairo. The use of the smartphone applications has taken off in Cairo, so much so that Uber says the Egyptian capital is one of its fastest growing markets. But not everyone is happy. Taxi drivers have been protesting against them for weeks as they lose more and more clients to the rival services. / AFP / KHALED DESOUKI / TO GO WITH AFP STORY BY TONY GAMAL (Photo credit should read KHALED DESOUKI/AFP/Getty Images)

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: engadget

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