Careem and other cab companies under law heat

Careem Networks Ltd, Derbi Cab, Crown Cab and Citi Cab are very famous in the twin city area. Careem and the other four cab companies were shut down by Islamabad Transport Authority (ITA) this week following the complaint by the local Taxi Driver Welfare Association (TWDA). An office bearer from the organization TWDA has filed a complaint with the deputy commissioner Islamabad and Secretary ITA. The complaint drew attention to a large number of vehicles being used as taxis by the cab companies in the capital. These vehicles are not under registration for commercial use. This practice impacted the business of registered taxi drivers.

The complaint further elaborated on how these private cab companies are running their business with vehicles that do not fulfill the registration criteria of a taxi. Private cab companies are therefore exempt from tax in association with the commercial use of vehicles. Since, these companies pay their workers as part-time or freelance employees that makes it feasible to avoid taxation. A loophole in the system of tax regulation. They get away with not paying major transportation tax.

Careem and other companies closed by ITA

The authorities have sent notice to the private cab companies including Careem Networks. They have asked for an explanation within three working days. The said notice reads:

It has come to the notice of the undersigned that you operate an illegal cab service in Islamabad. You are hereby directed to explain your position within three days from receipt of this communication. Otherwise, a strict legal action shall be taken against you.

Read about Uber and Careem services being halted in Abu Dhabi

It is to recognize that Uber has recently, come to Pakistan as well. The cab service giant is trying to make profits in the market as well. The current market player in the twin city area is Careem cab service. The action by the authorities came off as a strict regulatory move at the growing private cab service in the country. Private cab companies Uber and Careem have already started their own rickshaw service in parts of the country.

Image via Basel