Uber and Careem stage battle of the buses in Egypt

Uber will start a minibus service in Egypt, the most populous Arab nation and the company’s fastest-growing regional market, a day after its Middle East rival Careem announced plans for a bus-booking app in Cairo.

Uber Bus services will first roll out in Cairo, a city of more than 22 million people, as the San Francisco ride-hailing giant seeks to expand its presence in the country with “low-cost” transport services, Uber said yesterday.

“Egypt and the Middle East region are hugely important to Uber and we will continue to heavily invest in this part of the world,” Uber chief executive Dara Khosrowshahi said yesterday, following a press conference in Cairo with Egyptian investment minister Sahar Nasr.

Microbuses are a popular mode of transport in Cairo, offering an affordable option for millions of commuters on a daily basis, in the nation of more than 100 million where public transport barely keeps up with demand.

Uber and Careem have faced a lawsuit filed by Egypt’s taxi drivers who accused them of violating the country’s traffic laws by using private vehicles for commercial purposes. Egypt’s parliament in May approved a law regulating the licensing and operations of ride-hailing companies.

Uber and Careem’s announcements of their bus services highlights the ride-hailing companies’ intensifying rivalry in the Middle East where they compete across many major cities.