Careem looks to expand in Egypt: Investment Minister

CAIRO – 7 June 2017: Application-based ride service Careem wants to expand their business in Egypt on legislative improvements in business climate, Minister of Investment Sahar Nasr said Wednesday.

Nasr made the statements during a meeting with head of Careem’s external relations Samir Satchu and executive director of Careem Egypt Ramy Kato, a Ministry statement noted.

During the meeting, Nasr reviewed the recent legislative and administrative measures taken by the government to remove obstacles facing investors and lure more investments.

“The Ministry is keen on facilitating any hurdles faced by Careem in Egypt, which is offering a good service in the Egyptian market,” Nasr said.

In April, the Cabinet approved a bill to regulate the conditions of mobile-based ride applications, such as Uber and Careem.

As per the bill, these companies would have to directly hire drivers instead of dealing with independent contractors, in addition to paying taxes and insurance subscriptions for drivers.

After entering the market in 2015, Uber and Careem had faced strong rejection from taxi drivers in Egypt, who cited illegality of those two companies to offer transportation services at competitive prices.

In 2016, the government formed a committee to resolve the issue of online cab-booking, in collaboration with the Ministries of Transport, Communications, Interior, Social, Solidarity, Justice and Investment.

Founded in 2012, Careem has been expanding to reach 22 cities across the Middle East, North Africa and Asia.

Dubai-headquartered Careem has raised $350 million in investment in 2015 by Japanese e-commerce firm Rakuten and Saudi Telecom Company (STC), now-hiring over 50,000 drivers in Egypt.