Road Transportation Services Using Information Technology

Written By - Ahmed Raafat, Junior Associate
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Law no.87/2018 and decree no.2180/2019 (the “Law”) were issued to regulate operating companies such as Uber and Careem and any other companies that will undertake such activities using tech in Transportation Services.

The Law covers:

-Licensing and procedures.

-Companies obligations and commitments.

– Inclusion of taxies.

-Penalties.

1) Licensing:

-The license duration: 5 years, renewable for the same period.

-License fee: from EGP 3,000,000 and does not exceed EGP 30,000,000.

-Payment Plan: 25% of total fees in advance and 75% over 5 years.

 

Companies shall register at the General Administration of Traffic Information System to receive:

-Operating permit.

-Operating card.

-Logo.

Licensing Documents are:

-Operating Permit for Vehicles, vehicles shall be subject to technical examination to get that permit.

-Operating Card for Drivers.

-Both permits are valid for one year.

2) Companies Obligations and Commitments:

-Pay taxes and social insurance.

-Provide electronic payment through its online applications and provide drivers details and contacts.

-Deliver reports and data required by the Ministry of Transport to ensure service quality.

-Run a customer service center for complaints and respond within 48 hours.

-Provide trainings for drivers to use their applications.

-Carry out vehicle inspection before adding them to their platform.

-Provide information, data, technical capabilities to National Security Agencies.

-Keep all users information and data confidential.

-Companies shall notify the authority if they decided to change their fare and it should be clear on the company’s application.

3) Inclusion of taxies:

-The law obliged companies to include taxi cars within 3 months in their system. Failure to do so may result in a penalty of EGP 500,000 as minimum and EGP 5,000,000 as maximum in addition to license withdrawal.

4) Penalties:

-Failure to get the license or operate, facilitate the service without an operating permit may result in a penalty of EGP 200,000 as minimum and EGP 5,000,000 as maximum.

-Drivers that do not have an operating card or an operating permit for the vehicle are subject to penalty not less than EGP 5,000 and does not exceed EGP 20,000.

 

In the light of the above, the State is keen to facilitate the procedures of operating Transportation Services through Information Technology (IT) in Egypt, therefore Companies operating such services shall follow the new regulations, procedures and obligations set out in the present law, in order to ensure users high quality experience and security whenever using online platforms or mobile applications providing transportation services.