New Law Regulating Ride-hailing Services


Law

No. 87 of 2018 regulating Road Transport Services Using Information Technology is issued in Egypt on 11 June 2018 (the "Law"). The Law is the first law of its kind in the Middle East to regulate ride-hailing services.

The Law is mainly targeting the two major ride-hailing companies; Uber and Careem. Both companies have managed in a short time to establish a solid ground in Egypt. However, in 2018, an Egyptian court has decided the illegality of their position and suspended their operation license.

The Law comprises of 19 Articles regulating the required permits and licenses, obligations of the license holders, taxes and insurances as well as a plan to integrate the normal cabs in the system.

Permits and Licenses

The company providing the ride-hailing service (“Service Provider”) is required to obtain an operation license (the "Operation License"). The annual fee for obtaining such license shall not exceed EGP 30 million every five years.

Drivers are also required to obtain a special permit for their job at these companies against an annual fee not exceeding EGP 2000 and to get an operation card for an annual fee of EGP 2000.

Service Providers are required to place logos on the operating vehicles throughout the operation time, where the shape, color, place and insurance value of such logo is to be determined by the Prime Minister.

Data Privacy

For privacy matters, Service Providers and their affiliates must secure the databases and information in a way that preserves their privacy and protects it from hacking or being damaged. They are further required to retain such information for 180 consecutive days and make them available for any governmental authority at request.

Taxation and Insurance

Service Providers are required to pay all tax, fees, social insurances stated by the law for the competent governmental authority. They are required to register drivers at the social insurance and pay social insurance contributions in accordance with the Social Insurance Law No. 79 of 1975.

Integration of the Normal Cab

In a step to engage the normal cab drivers who have been disadvantaged as a result of the existence of the new ride-hailing service, the Law obliged Service Providers to set their policies in a manner where they can merge normal cabs in their organizations within 3 months of obtaining the operation license. They are further obliged to develop the capacities of the drivers of such cabs.

Posted in News on Aug 27, 2018