Startups, Technology

Government is stepping in to regulate Careem & Uber’s extremely low rates

Written by Maryam Dodhy ·  1 min read >

Government authorities are stepping in to regulate the ride-hailing services in Pakistan. This news comes just a few days after local taxi-drivers in the twin cities went on a massive strike, demanding that app-based taxi services be completely banned because they are negatively affecting their livelihood.

A few years ago when Careem and Uber were launched in Pakistan, people had genuine concerns over their mass adoption. Fast-forward to today, people are readily using these services and as a result, the business of local cabs has seen a decline.

According to Express Tribune, Islamabad Transport Authority (ITA) has come up with a new strategy after conducting detailed discussions with local taxi drivers and services like Careem and Uber. They are putting forth some recommendations in order to streamline the bitter state of affairs right now.

Local cab drivers from the twin cities protested against the extremely low rates that Careem, Uber and other services provided, making it very difficult for them to keep up. In lieu of this, ITA Secretary Jawad Muzaffar said that they will be issuing a rate list to these ride-hailing services which they would have to follow strictly.

Furthermore, the ITA is coming up with a checklist that would ensure that cars registered with these ride-hailing services do not bypass any legal or technical loopholes. Their taxis would be forced to display custom stickers on front and back windshields, and will also be required to get a fitness certificate which will be issued by the Motor Vehicle Examiner (MVE). In the near future, their taxis could also be required to convert their vehicle status from private to commercial.

TechJuice spoke to Careem’s Public Affairs Head, Sibtain Naqvi, about the matter who simply stated: “Careem has been working with the Government of Pakistan on ride-hailing regulations and will continue to do so.”

We have also reached out to representatives of Uber on this.

Written by Maryam Dodhy
I love bringing to light stories of extraordinary people working in Pakistan's tech and startup industry. You can reach out to me through Profile