Middle East ride-hailing business Careem raised its fares on Friday in Egypt to cope with the government’s latest round of fuel subsidy cuts under an IMF-backed austerity programme.
The increases followed hikes to fuel, electricity and public transport prices, a key requirement of a three-year, $12 billion reform programme signed with the International Monetary Fund in 2016.
For customers in Cairo, Careem raised the starting fare to 9 Egyptian pounds ($0.54) from 7.7 pounds, adding 3.19 pounds per kilometre from 2.8 pounds. The waiting charge was also increased to 0.91 pounds from 0.76 pounds, Careem added.
In Alexandria, Egypt’s second largest city, Careem has increased the starting fare to 8 pounds from 6.94 pounds, with 3.43 pounds per kilometre from 3.01 pounds. The waiting charge was hiked to 0.76 pounds from 0.68 pounds.
It is unclear if Careem’s rival, San Francisco-based Uber, will follow suit and increase fares as it announced on Friday it was still studying the impact of the government’s latest fuel hikes.
