Careem and Uber Taxi Services Banned and Declared Illegal In Punjab

Uber and Careem Taxi Service Banned

Punjab Transport Authority has started crackdown against the mobile application based taxi services Careem, Uber, and A-One and has declared them all illegal.

The notice issued by Punjab Provincial Transport Authority to the Chief Traffic Officer, Lahore, and CEO Lahore Transport Company mentions that these cab services are operating without registering the private cars with any regulatory body and without obtaining fitness certificates/ route permits and thus are causing loss to Govt. Exchequer and are a security threat to the public using their services.

The notification also states that the use of private cars as a commercial vehicle is a violation of Section 2(5), (20), Section 39 and Se4ction 44 of Motor Vehicle Ordinance 1965. Also, it violates the policy of Rent-A-Car Service of Punjab PTA.

Notification against taxi services
Notification by Punjab PTA against taxi services in Punjab

Uber was launched officially in Pakistan last year and quickly entered into strategic partnership with Mobilink. The government of Punjab last year was also getting ready to enter into a partnership with the taxi service.

In April 2016, Uber also partnered up with PITB to enhance the experience of its taxi service and create more economic opportunities for people with the help of locally designed technology solutions of PITB.

In November last year, PITB and Plan 9 joined hands with Careem for Pakistan’s first entrepreneurial roadshow where young, mad geniuses from different universities competed to incubate their business idea.

  1. This is not new for foreign online-platform based companies like Careem and Uber but definitely dangerous sign for local entrepreneurs … just search over internet and you will find same words against Careem and Uber in other territories yet it is a reality that both are working with some compromises at both ends. If you out-rightly ban this model, you are ready to ban each and every virtual-physical market intermediary and associated services … How you will encourage innovation and digital services if you start judging new services on the basis of traditional laws … Govt has to decide whether they want to promote only subscriber base or real uptake of innovative services.

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