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Egypt: Ministerial Resolution Issued to Regulate Activities of Ride-Sharing Companies

(Oct. 22, 2019) On September 18, 2019, Egypt’s cabinet issued Resolution No. 2180 of 2019, which regulates ride-sharing companies operating in Egypt, such as Uber. The Resolution acts as the executive regulation of Law No. 87 of 2018 concerning land transportation services. Under the Egyptian legal system, an executive regulation is used to clarify the general provisions of a law by providing more details about them.

Resolution No. 2180 of 2019

Resolution No. 2180 of 2019 mandates that ride-sharing companies be responsible for conducting background checks on drivers before hiring them, as well as subject drivers to random drug and alcohol tests. It also compels ride-sharing companies to hire only drivers with modern air-conditioned cars that are no more than five years old. (Art. 9.)

According to the Resolution, ride-sharing companies are to submit to the Ministry of Transportation six months’ worth of “customers’ data” from all rides provided upon request by the Ministry. (Art. 10.)

The Resolution also requires that drivers hired by ride-sharing companies pay a social security insurance fee and obtain a work license from the Ministry of Transportation, the requirements for which include providing commercial records, a tax card, and a vehicle registration. (Art. 23.)

Law No. 87 of 2018

In June 2018, President Abdu Al-Fatah Al-Sisi signed Law No. 87 of 2018. The Law consists of 19 provisions that govern services offered by all kinds of land transportation companies, including ride-sharing companies. The Law bans ride-sharing companies from operating in Egypt without obtaining a permit from the cabinet, which has the authority to determine how many permits are granted to land transportation service companies to operate legally in the country. (Arts. 2 & 5.)

All vehicles used in transporting individuals must display during operating hours the logo of the transportation company with which the vehicle is affiliated. The Law also forbids any person from working in the field of land transportation services without affiliation to a transportation company licensed to operate in Egypt by the cabinet. (Arts. 7 & 8.)

All land transportation service companies are required to provide the country’s national security agencies with “all their customers’ data” and to pay taxes annually. (Arts. 9 & 11.)

Legal persons caught working in the field of land transportation services without obtaining a permit from the cabinet are fined 200,000 to 5 million Egyptian pounds (EGP) (about US$12, 300 to $306,000). The Law also imposes a fine of EGP5,000 to 20,000 (about US$306 to $1,226) on anyone driving a vehicle without obtaining a permit to use the vehicle in a land transportation service company. In addition, it imposes the same fine on drivers who do not display the logo of the transportation company that they are affiliated with during operating hours. Finally, the Law imposes a penalty of EGP500,000 to 5 million (about US$36,650 to $306,000) on transportation companies that do not provide customer data to the national security agencies. (Arts. 15–17.)