Punjab Government Declares Careem and Uber Illegal Over Regulatory Violations

LAHORE: The Punjab Government’s Provincial Transport Authority (PTA) declared popular ride-hailing services Careem and Uber illegal, raising concerns over the regulatory status of app-based transport services operating across the province. The decision was taken after authorities claimed that these companies were providing transport facilities without completing required legal procedures.

According to officials, the major issue was the use of private vehicles for commercial transportation without registration with relevant regulatory authorities. The Punjab Transport Authority stated that vehicles operating under platforms like Careem and Uber were required to fulfill legal requirements, including obtaining necessary permits and fitness certificates.

The notification issued by the authorities was forwarded to traffic officials in Lahore and other concerned departments for further action. Officials argued that allowing private cars to operate as commercial taxis without proper documentation could create regulatory and safety challenges.

Government Raises Tax and Registration Concerns

The Punjab government also highlighted financial and taxation concerns linked with ride-hailing companies. Authorities said that such services needed to register themselves under a proper framework and follow taxation rules applicable to transport businesses.

The emergence of Careem and Uber had introduced a new transportation model in Pakistan, where customers could book rides through mobile applications. However, officials stated that existing transport laws did not fully cover this modern business model, creating the need for updated regulations.

Public Reaction Over Possible Ban

The announcement created uncertainty among thousands of passengers and drivers who were using these platforms for affordable and convenient transportation. Many users expressed concerns over the possible suspension of services, while drivers feared losing their source of income.

Careem and Uber representatives maintained that they were willing to cooperate with government authorities and work towards resolving legal matters. Companies argued that ride-hailing services were creating employment opportunities and providing modern transport solutions to citizens.

Punjab Government Reviews Decision

Following discussions, government officials clarified that the matter was being reviewed and that the objective was not only to stop services but to develop a proper regulatory system. Punjab authorities later allowed companies time to complete registration requirements and comply with regulations.

Punjab Information Technology Board officials also stated that a balanced approach was needed because digital transportation services had benefits for the public and contributed to employment opportunities.

Future of Ride-Hailing Services in Punjab

The controversy highlighted the challenges governments face while regulating technology-based businesses. Experts believe that instead of completely stopping such platforms, clear rules and registration procedures can help ensure passenger safety while supporting innovation in the transport sector.

The Careem and Uber case became an important example of how traditional laws often need updates to accommodate new digital business models. The government’s focus remained on creating a framework where ride-hailing companies could operate legally while meeting safety, taxation, and transport requirements.