Ride-hailing market upheavals in Egypt is

CAIRO (Reuters) – the Competition is in Egypt a ride from, and a tech-enabled market, it is heating up as rivals from the global giant Uber (UBER.To small, local companies competing for a slice of the Middle East’s largest market.

FILE PHOTO: The minarets of the Sultan Hassan Mosque and the Al-Rifa’i Mosque, can be seen as a traffic jam during a sandstorm in Cairo, Egypt, 6th of January 2019 at the latest. REUTERS/Amr Abdallah Dalsh/File Photo

The operators say that there is much more room for growth. Egypt’s population will soon swell to 100 million. Taxis, minibuses, tuk-tuks and motorbikes to shuttle passengers and supplies through the busy, chaotic streets.

The major players are, Careem and Uber, which had its IPO in May, and posted a wider third-quarter loss on Monday as it attempts to spend more than their competitors. The companies will continue to work separately despite the merger at the end of March.

Experts estimate that there will be more mergers and start-ups are trying to gain market share for the bus, as well as the engine service.

Egypt is one of Uber’s top 10 markets around the world, and is considered to be a regional tech hub and start-ups, such as a digital payments company Fawry FWRY.CA have set up shop in tech park outside of Cairo.

Uber has about 900,000 active driver in all of Egypt is involved in about half of egypt’s 27 governorates, and is looking forward to expanding next year in the resort town of Sharm el-Sheikh in the south of Egypt, Egypt’s General Manager, Ahmad Hammouda, told Reuters.

Both Uber and Careem are introduced to bus services at the end of last year, after the launch of a local start-up business, Swvl, which runs the buses along fixed routes, by means of an app. Swvl has already expanded in Kenya and the united states of america.


In addition to buses and private cars, Uber and Careem engines will also have to compete with Egypt’s start-up, Halan, has been launched in November of 2017, is active in more than 20 Egyptian towns and cities as well as in the sudanese capital, Khartoum.

The Tech-enabled food delivery is also very rapidly, and where the Uber is Eating competition with Halan, and the local start-up business, Elmenus, a Spanish start-up, Glovo and Otlob. In germany, Delivery Hero purchased Otlob in 2017 and has an interest in Glovo.

Halan makes use of motors to provide the food, the tuk-tuks are the transportation of passengers and cargo three wheelers for goods. It has partnerships with fast food chains such as McDonald’s, KFC, and Pizza Hut in Egypt, and is now focusing on the smaller restaurants.

It has about 10,000 active board members, the CEO, Mounir Nakhla told Reuters.

Launched in June 2011, as well as a catalogue of the menus of the restaurants Elmenus started with the delivery of food via its platform at the end of last year, and is due to launch its own delivery vehicles, this month, the company’s founder, Amir Allam, told Reuters.

Glovo, plans to invest € 5 million ($5.54 million) in the country in which the said smartphone use is growing rapidly, but still only a quarter of the supplies can be ordered online.

“There will come a time when someone, or a few players will dominate,” he said Elmenus’ Allam. “But it’s still a long way to go, because the market is huge.”


Maged Dessouky, a transportation expert at the University of Southern California, said that it was hard to tell who would prevail.

“Size matters, but size isn’t everything,” he said. “Of course, when we get to autonomous vehicles, it’s going to be very interesting. That’s going to change the equation completely.”

In spite of the optimism surrounding the sector, there are many types of uncertainty. In September, the egyptian parliament passed a law on ride-hailing apps that they are required to retain data for a period of six months and share it with the government and when prompted to do so.

Earlier this year, Uber riders and drivers in Egypt are facing technical issues with the Uber app, and two security sources said was linked to the data-sharing disputes with the government.

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The Egyptian competition authority (ECA), the investigation of the Uber assumption of Careem, and new participants are always visible.

Earlier this year, the billboards will jump all over Cairo advertising the ride-hailing company, Dubci, which is speculation that Egypt’s powerful military, which has been expanding its operations, was the behind-the-back.

The billboard has disappeared for the most part, as well as news about the Dubci is limited, since the military is denied the property in mid-July. Reuters could not reach the company.

Additional reporting by Ehab Farouk; Editing by Aidan Lewis, Ulf Laessing and Andrew Heavens

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