Government To Regulate Careem And Uber Rates

Government To Regulate Careem And Uber Rates

The reaction to local taxi driver strike on banning app-based taxi’s like Careem and Uber is that the government has decided to take steps and regulate Careem, Uber and similar ride hailing services in Pakistan.

Interesting: Bakra on demand service by Careem

When Careem and Uber launched their services in Pakistan, there was no surety of their success. There are many question marks on whether Pakistanis would replace them with local taxis or not.

Now numerous Pakistanis have stopped using local cabs and so their business has gone down. Islamabad Transport Authority (ITA) has had detailed discussions with domestic taxi services as well as Careem and Uber. The Authority will come up with strategies to put an end to these disputes.

Local cab drivers said that the services provided extremely low rates to the customers, so much so that they can’t match up to it. Thus ITA Secretary Jawad Muzaffar will issue ride hailing service rates that would have to be followed strictly.

Moreover, cars that are registered with these companies would be checked to ensure they are legally and technically allowed to be used as taxis. Custom stickers would be added to the taxis along with a fitness certificate that would be granted by Motor Vehicle Examiner (MVE). The status of the taxi would also need to be converted to commercial from private.

“Careem has been working with the Government of Pakistan on ride-hailing regulations and will continue to do so,” was the reaction of Careem’s Public Affairs Head, Sibtain Naqvi,

Here we should also note that half a year back in January government of Pakistan banned Uber and Careem services in Pakistan. In response to it, a petitioner pleaded from High Court that government should stop banning these services to which LHC after hearing from all parties, gave the verdict that the government can no longer ban these services in Pakistan.
August 25, 2017