{"id":628568,"date":"2018-05-08T04:12:37","date_gmt":"2018-05-08T04:12:37","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/08\/parliament-looks-to-smother-ride-hailing-in-the-baby-crib-by-approving-an-even-worse-version-of-the-ride-hailing-apps-act\/"},"modified":"2018-05-08T04:12:37","modified_gmt":"2018-05-08T04:12:37","slug":"parliament-looks-to-smother-ride-hailing-in-the-baby-crib-by-approving-an-even-worse-version-of-the-ride-hailing-apps-act","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/08\/parliament-looks-to-smother-ride-hailing-in-the-baby-crib-by-approving-an-even-worse-version-of-the-ride-hailing-apps-act\/","title":{"rendered":"Parliament looks to smother ride-hailing in the baby crib by approving an even worse version of the Ride-Hailing Apps Act"},"content":{"rendered":"<p><a id=\"tldr-story-01\" class=\"content-anchor\"><\/a> <strong>LEGISLATION WATCH- Parliament looks to smother ride-hailing in the baby crib by approving its Ride-Hailing Apps Act:<\/strong> The House of Representatives approved in its plenary session yesterday the Ride-Hailing Apps Act. Parliament not only passed the law <a href=\"https:\/\/dbonfrdgauzmg.cloudfront.net\/news\/details\/1288490\">without amending its most controversial clauses<\/a> on user data, but appears to have drafted a worse version of the law. The move comes many MPs <a href=\"https:\/\/enterprise.press\/stories\/2018\/05\/07\/final-vote-on-ride-hailing-apps-act-postponed-in-house-on-account-of-controversial-clauses\/\">heavily criticizing on Sunday articles 9 and 10 of the legislation<\/a> \u2014 which mandate that ride-hailing companies <strong>store user data on servers for a period of 180 days and make information accessible to government agencies<\/strong> when requested. The Egyptian Council of State (Maglis El Dawla) had said that these clauses were unconstitutional, and reports suggested that a House subcommittee charged with reviewing the act <a href=\"https:\/\/enterprise.press\/stories\/2018\/04\/11\/parliament-compromises-on-user-data-sharing-in-ride-hailing-apps-act\/\">had agreed to scrap them<\/a>. The passed version of the act requires the companies to store the user data on their servers abroad for the 180-day period, in contrast to an earlier draft that required data to be stored locally.<\/p>\n<p><strong>The law also retained several other stipulations that had earned the ire of ride-hailing companies Uber and Careem<\/strong>, a copy of the legislation <a href=\"https:\/\/www.youm7.com\/story\/2018\/5\/7\/%D8%A7%D9%84%D8%B9%D9%82%D9%88%D8%A8%D8%A7%D8%AA-%D8%AA%D8%B5%D9%84-%D9%84%D9%805-%D9%85%D9%84%D8%A7%D9%8A%D9%8A%D9%86-%D8%AC%D9%86%D9%8A%D9%87-%D9%86%D8%B5-%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%A3%D9%88%D8%A8%D8%B1-%D9%88%D9%83%D8%B1%D9%8A%D9%85-%D8%A8%D8%B9%D8%AF\/3782219\">published on Youm7 shows<\/a>. Drivers operating through the companies must display a \u201csymbol\u201d \u2014 the nature of which will be determined by the prime minister at a later time \u2014 to indicate their affiliation with the company. Ride-hailing companies will have a three-month window after receiving their operating licenses to prepare a policy strategy to incorporate white taxis in their fleets and train white taxi drivers to meet the companies\u2019 quality standards. A decree from the prime minister will be issued to set these standards. <strong>The law also sets a six-month window for companies to comply with all its requirements.<\/strong><\/p>\n<p><strong>In its final form, the legislation also imposes higher licensing fees than <\/strong><a href=\"https:\/\/enterprise.press\/stories\/2018\/03\/29\/a-copy-of-the-ride-hailing-apps-act-just-got-leaked-to-the-press\/\"><strong>a previous draft had indicated<\/strong><\/a>. Companies will be required to pay up to EGP 30 mn (up from the EGP 10 mn cap previously suggested) to receive a five-year operating license. Companies will pay a 25% down payment on these licenses and will pay the remaining fees in instalments over the five-year licensing period. Meanwhile, ride-sharing drivers must pay up to EGP 2,000 (up from EGP 1,000) for an annual license to work through the companies, and will pay taxes 25% higher than those imposed on cab drivers. Companies will also be required to pay a one-off fee to legalize their status. The law stipulates that this fee must be lower than the cost of the operating license.<\/p>\n<p><strong>Companies and drivers will both face fines for violations:<\/strong> Companies that operate without receiving the necessary licenses will face penalties ranging between EGP 200k and 5 mn, while drivers will be fined EGP 5-20k for the same offense. A fine of no less than EGP 500k and no more than EGP 5 mn will be imposed on companies that fail to share their databases as required by the state or incorporate white taxis in their fleets. These violations could also lead to companies\u2019 licenses being revoked.<\/p>\n<p><strong>The law does not apply to tuk-tuks<\/strong>, House Transport Committee undersecretary Ahmed Hussein confirmed yesterday, <a href=\"http:\/\/gate.ahram.org.eg\/News\/1905228.aspx\">according to Ahram Gate<\/a>. Tuk-tuks are regulated through their respective municipalities, Hussein said.<\/p>\n<p><strong>Just in the nick of time:<\/strong> The law\u2019s passing comes just days before the Supreme Administrative Court will hear an appeal by Uber and Careem against a <a href=\"https:\/\/enterprise.press\/stories\/2018\/03\/21\/administrative-court-orders-shut-down-of-ride-hailing-apps-uber-and-careem-companies-plan-appeal\/\">lower court decision<\/a> that ordered the two companies to suspend operations.<\/p>\n<p><strong>Uber seems to be taking the law in stride:<\/strong> The law is \u201ca major step forward for the ridesharing industry as Egypt becomes one of the first countries in the Middle East to pass progressive regulations,\u201d spokeswoman Shaden Abdellatif said, <a href=\"https:\/\/abcnews.go.com\/Technology\/wireStory\/egypt-approves-law-govern-popular-ride-hailing-apps-54985191\">the Associated Press reports.<\/a> Careem declined a request to comment. \u201cWe will continue working with the prime minister and the cabinet in the coming months as the law is finalised, and look forward to continuing to serve the millions of Egyptian riders and drivers that rely on Uber,\u201d the company said, <a href=\"https:\/\/af.reuters.com\/article\/egyptNews\/idAFL3N1SE4MU\">according to Reuters<\/a>.<\/p>\n<p><strong>Meanwhile, Investment and International Cooperation Minister Sahar Nasr hailed the legislation as \u201cencouraging\u201d for the ride-sharing industry<\/strong>, <a href=\"http:\/\/www.miic.gov.eg\/Arabic\/MediaCenter\/News\/Pages\/%D8%AF.-%D8%B3%D8%AD%D8%B1-%D9%86%D8%B5%D8%B1-%D9%85%D9%88%D8%A7%D9%81%D9%82%D8%A9-%D9%85%D8%AC%D9%84%D8%B3-%D8%A7%D9%84%D9%86%D9%88%D8%A7%D8%A8-%D8%B9%D9%84%D9%89-%D9%82%D8%A7%D9%86%D9%88%D9%86-%D8%AA%D9%86%D8%B8%D9%8A%D9%85-%D8%AE%D8%AF%D9%85%D8%A7%D8%AA-%D8%A7%D9%84%D9%86%D9%82%D9%84-%D8%A7%D9%84%D8%A8%D8%B1%D9%89-%D8%A8%D8%A7%D8%B3%D8%AA%D8%AE%D8%AF%D8%A7%D9%85-%D8%AA%D9%83%D9%86%D9%88%D9%84%D9%88%D8%AC%D9%8A%D8%A7-%D8%A7%D9%84%D9%85%D8%B9%D9%84%D9%88%D9%85%D8%A7%D8%AA-%D9%8A%D8%B9%D8%B7%D9%89-%D8%A7%D9%84%D9%81%D8%B1%D8%B5%D8%A9--%D9%84%D8%B4%D8%B1%D9%83%D8%A7%D8%AA-%D9%85%D8%B5%D8%B1%D9%8A%D8%A9%D8%B5%D8%BA%D9%8A%D8%B1%D8%A9.aspx\">according to a ministry statement<\/a>. Nasr also said the law will protect competition in the transport sector while leveling the playing field.<\/p>\n<p><strong>Privacy concerns top coverage of the law in the foreign press:<\/strong> We can naturally expect that the international press is having a field day with the act in its current form. <a href=\"https:\/\/www.wsj.com\/articles\/egyptian-bill-on-ride-hailing-data-prompts-privacy-concerns-1525721830?mod=searchresults&page=1&pos=1\">The Wall Street Journal<\/a> is noting criticisms by Human Rights Watch and other organizations.<\/p>\n<p><strong>Our take \u2014 Uber and Careem will be fine. Startups will suffer:<\/strong> It seems from the wording of the law that MPs have only heard of Uber and Careem, two major multinationals in the ride-hailing space that can bear the hefty licensing and penalty costs in the law. What they don\u2019t seem to understand is that local startups, such as Swvl \u2014 which set a record for a Series A funding round in Egypt with USD 8 mn <a href=\"https:\/\/enterprise.press\/stories\/2018\/04\/24\/swvl-sees-the-largest-funding-round-in-egypt-tech-startup-history\/\">last month<\/a> \u2014 will find it harder to comply with the stringent financial demands of the law. The law has the potential to stifle a nascent and exciting new industry. And as for cab drivers, we have as much sympathy for them as the horse and buggy drivers when cars came about.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LEGISLATION WATCH- Parliament looks to smother ride-hailing in the baby crib by approving its Ride-Hailing Apps Act: The House of Representatives approved in its plenary session yesterday the Ride-Hailing Apps Act. Parliament not only passed the law without amending its most controversial clauses on user data, but appears to have drafted a worse version of [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[8572],"tags":[72,2380],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-628568","post","type-post","status-publish","format-standard","hentry","category-speed-round","tag-enterpriseam","tag-speed-round","wpautop","entry"],"acf":{"mongo_id":"3b49aff1-038a-4570-b2d6-44b5736c268c","order":"0","is_powered_by":true,"story_type":"1","photo_url":"","photo_position":"above","related_issue":[628561],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Parliament looks to smother ride-hailing in the baby crib by approving an even worse version of the Ride-Hailing Apps Act - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2018\/05\/08\/parliament-looks-to-smother-ride-hailing-in-the-baby-crib-by-approving-an-even-worse-version-of-the-ride-hailing-apps-act\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Parliament looks to smother ride-hailing in the baby crib by approving an even worse version of the Ride-Hailing Apps Act\" \/>\n<meta property=\"og:description\" content=\"LEGISLATION WATCH- Parliament looks to smother ride-hailing in the baby crib by approving its Ride-Hailing Apps Act: The House of Representatives approved in its plenary session yesterday the Ride-Hailing Apps Act. 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Despite this not being the official role of parliament, the sources said the move is precautionary to prevent\u2026","rel":"","context":"In &quot;Legislation + Policy&quot;","block_context":{"text":"Legislation + Policy","link":"https:\/\/enterpriseam.com\/egypt\/category\/legislation-policy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":628523,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/05\/07\/final-vote-on-ride-hailing-apps-act-postponed-in-house-on-account-of-controversial-clauses\/","url_meta":{"origin":628568,"position":1},"title":"Final vote on Ride-Hailing Apps Act postponed in House on account of controversial clauses","author":"enterpriseam admin","date":"7 May 2018","format":false,"excerpt":"LEGISLATION WATCH- Final House vote on Ride-Hailing Apps Act postponed amid backlash against data-sharing clauses: The Ride-Hailing Apps Act failed to breeze through a final vote in the House of Representatives yesterday, drawing heavy criticism for some of its most controversial clauses, which appear to not have been amended at\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":630079,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/04\/11\/parliament-compromises-on-user-data-sharing-in-ride-hailing-apps-act\/","url_meta":{"origin":628568,"position":2},"title":"Parliament compromises on user data sharing in Ride-hailing Apps Act","author":"enterpriseam admin","date":"11 April 2018","format":false,"excerpt":"LEGISLATION WATCH- Parliament compromises on user data sharing in Ride-hailing Apps Act: A House of Representatives subcommittee charged with reviewing the Ride-hailing Apps Act amended yesterday the bill\u2019s most controversial clause, scrapping a requirement that would have forced ride-hailing companies to store user data in Egypt and share them with\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":591571,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/12\/10\/govt-invites-ride-hailing-companies-to-discuss-ride-hailing-apps-act-exec-regs\/","url_meta":{"origin":628568,"position":3},"title":"Gov\u2019t invites ride-hailing companies to discuss Ride Hailing Apps Act exec regs","author":"enterpriseam admin","date":"10 December 2019","format":false,"excerpt":"REGULATION WATCH- The government is inviting ride-hailing companies to come in for a talk about the executive regulations of the Ride-Hailing Apps Act, Masrawy reported. The regulations were made official in September after winning cabinet approval and being published in the Official Gazette, and the meetings now taking place are\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":595220,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/09\/19\/cabinet-approves-regs-of-ride-hailing-apps-act\/","url_meta":{"origin":628568,"position":4},"title":"Cabinet approves regs of Ride-Hailing Apps Act","author":"enterpriseam admin","date":"19 September 2019","format":false,"excerpt":"REGULATION WATCH- Gov\u2019t kickstarts implementation of Ride-Hailing Apps Act: The Madbouly Cabinet approved in its weekly meeting yesterday the executive regulations of the Ride-Hailing Apps Act, it said in a statement. The regs cover a variety of regulatory procedures, including registration, licensing, taxes and social insurance \u2014 stipulating that all\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2019\/4\/5.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":631600,"url":"https:\/\/enterpriseam.com\/egypt\/2018\/03\/22\/cabinet-refers-ride-hailing-apps-act-to-parliament-for-sign-off\/","url_meta":{"origin":628568,"position":5},"title":"Cabinet refers Ride-Hailing Apps Act to Parliament for sign-off","author":"enterpriseam admin","date":"22 March 2018","format":false,"excerpt":"LEGISLATION WATCH- Ismail Cabinet acting fast to legalize Uber, Careem: The Ismail Cabinet referred the Ride-Hailing Apps Act to the House of Representatives for review and approval yesterday after having received the final draft from Maglis El Dawla, Al Shorouk reports. 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