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COMESA to Review Uber Contract

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COMESA to Review Uber Contract

(3 Minutes Read)

Uber, headquartered in the Netherlands, first launched in sub-Saharan Africa in 2013 in South Africa, but soon expanded to Nigeria, Ghana and Cote d’Ivoire in West Africa, as well as Kenya, Uganda and Tanzania in East Africa.

The COMESA Competition Commission (CCC) says it has reviewed Uber’s operations and contracts and found systems that go against the regional regime on consumer protection.

The CCC, which policies firms in the Common Market for East and Southern Africa (Comesa) bloc, also protested a section in the contract offered by Uber that compels parties to its service, to resolve disputes under Dutch laws. The commission wants that changed to prioritise local laws in the countries where cab-hailing firms operate.

Uber, headquartered in the Netherlands, first launched in sub-Saharan Africa in 2013 in South Africa, but soon expanded to Nigeria, Ghana and Cote d’Ivoire in West Africa, as well as Kenya, Uganda and Tanzania in East Africa.

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However, the company’s contract included clauses that did not favour customers.  It also designated the Netherlands as the jurisdiction to resolve disputes between the parties, which the watchdog finds unacceptable.