The Sindh Transport department, on Monday, decided to regulate the app-based ride-hailing companies. Uber and Careem have received a notice from the Sindh Minister to obtain their Karachi route permits from the provincial government within seven days or face the termination of services.
The companies have given seven days’ time from Sindh Government to obtain their Karachi route permits. Sindh Transport Minister Owais Shah revealed that the news to ban ride-hailing services in the province is factless and baseless. However, all ride-hailing services included Careem and Uber will be regulated as government bring them under the legal tax net. Now, all services should register themselves with the Transport Department within seven days so the government can regularize them. Owais Shah said that reports about the closure of Careem and Uber are based on hearsay. However, the government decided to regulate them.
Last year, a joint consensus was reached between the Sindh government and ride-hailing services that Careem, Uber and other companies will obtain permits under the Motor Vehicles Ordinance, 1965, in order to continue operating as a service provider. It was also reported that the Sindh government and the transport ministry had prepared legal documents aimed at resolving the issue of these ride-hailing services, under the legislative law.
Earlier, the Provincial Minister revealed that the Sindh government signed a memorandum of understanding regarding route permits with the ride-sharing service three years ago. However, he claims that the two companies have not been complying with the MOU and are instead operating under their own rules without government approval. He also said they will ban Uber and Careem if they do not accept the Sindh government’s route permits within the next seven days.