Looks like rumors about the Government of Punjab, Pakistan, planning to take action against services by Careem and Uber turned out to be true. Early Tuesday morning, the Punjab Government issued an order against Careem, Uber and A-One taxi services, declaring them illegal and directing agencies to take strict action against them.

The notification was officially issued by the Punjab Transport Authority (PTA). The reason for declaring them illegal was made on the following basis as per most recent reports:

  • Companies are illegally using private cars for services
  • There is a lack of any sort of certification in regards to car-fitness and route permit
  • The provincial government is facing a major financial loss due to lack of regulations
  • No official security clearance of drivers has been obtained by respective government authorities by these companies

Read More: How to Become an Uber Driver in Pakistan

What is Going on in Punjab?

This is unprecedented in Pakistan thus far. Such a ban has not been enforced by any other province or major city in which both Careem and Uber are operating. Both are still allowed to function in Karachi and Islamabad for now, since the respective authorities are yet to issue a similar ban. There are no reports as of yet of those governments contemplating such action.

Sources who wanted to give their input anonymously on this matter, blamed the failure of the Punjab government’s own taxi service and public transport for banning any sort of competition. Al-Bayrak had recent started a metered transport service under the wing of the provincial government and had not been doing so well.

For now, Careem and Uber were operating in Lahore, the capital city of Punjab and will seriously face a monetary crisis. Both companies could now have been regarded as finally establishing a successful setup in one of Pakistan’s largest cities, but this hindrance will cause a serious setback to both.

The City Traffic Police Lahore also confirmed news of the notification on their official Facebook page

Read More: Become a Careem Driver in Pakistan

Already in Action

Other early reports have suggested that over 100 cars, which were being operated by private citizens under Uber and Careem, have also been seized by authorities. If you or anyone you know are regular drivers for either Careem or Uber, make sure that they choose to stay out of the scene for a while until matters clear up.

Legal remedies will almost certainly be sought out by both companies. It will be the only way for them to get some sort of injunction to continue operating while a legal battle will continue going on behind the scenes.

Read More: What Separates Uber from a Taxi and How to Use the Uber App

TechBizWeb will keep you updated as soon as further progress is made on this issue. Let us know what you think of the ban in the comments section below or on the TechBizWeb Facebook page.