Resolution to hail-ride cab services, govt tussle within reach

Court grants time to transport dept to finalise draft of regulations for Careem, Uber in Sindh

KARACHI: The Sindh High Court granted on Thursday time to the provincial transport department secretary to file a report on the finalisation of a draft to regulate operations of hail-ride services such as Careem, Uber and others, in the province.

A two-judge bench, headed by Justice Aqeel Ahmed Abbasi, granted time when the provincial law officer informed the court that the draft of the proposed legal mechanism to regulate the private cab services' operations was being devised by the transport department authorities in consultation with the cab services' management.

The law officer said that an agreement had been signed between the Careem cab service and Sindh government in order to register their vehicles in the category of commercial operations. However, he said the authorities will need permission from the court to register the cab services' private vehicles under the Motor Vehicles Ordinance, 1979.



The bench allowed time for finalising the draft of the proposed mechanism 'in accordance with the law' and present the same in the court by May 22.

Case history

Claiming to have been providing female passengers 'harassment-free rides', Careem, Uber and other similar cab services were recently served notices by authorities in Punjab and Sindh to suspend their 'illegal' operations for want of mandatory registration.

Muhammad Ahsan Puri, a resident of Karachi, had taken the provincial and police authorities and the Careem cab service's chief executive officer to court, alleging that the foreign-originated company was carrying out its operations in Pakistan, including Karachi, through an internet and mobile phone application.



He said the company provides taxi services, hence fits the definition of a motor cab under the Motor Vehicle Rules, 1959. Under the company's policy, the owner of any type of private vehicle could give the vehicle to the Careem cab service, which was using them as taxis that were not registered as non-commercial vehicles under the Sindh Motor Vehicle Taxation and Registration Act. The company pays the owners Rs80,000 to Rs90,000 per month, he added.

Puri said the respondent company was violating the provisions of the Sindh Motor Vehicle Tax Act, 1958, the Motor Vehicle Rules, 1959, and the Motor Vehicle Ordinance, 1965, which specifically provide that no non-commercial vehicle could be used for commercial purposes. These vehicles must have a certificate of fitness issued by the provincial transport department, the traffic police or other departments, said the petitioner.

He further claimed that the company was using its vehicles as taxis, which had no signboard or symbol, making it difficult for law enforcement agencies, including the traffic police, to check all the relevant legal requirements to determine the fine for such vehicles in case of violations.



Puri added that the vehicles did not have fare meters installed in the cabs.

He contended that the private owners of such vehicles were earning millions of rupees without disclosing their assets to the government, thus huge tax evasion was being carried out.

Therefore, he pleaded the court direct the provincial transport department and Karachi Traffic DIG to take action against the operations of the foreign company for violating the laws. It was also pleaded to order the authorities to immediately suspend such illegal operations.