Algerian ride-hailing startup Yassir, which was recently, in April 2019, ranked 3rd on the list of the 100 Most Promising Startups in the Arab World at the World Economic Forum has hit rock bottom in Morocco’s largest city of Casablanca. The region of Casablanca-Settat has declared Yassir’s operations within the Casablanca province as illegal, stating that it had not issued any authorization to the startup (called in full, Yassir Maroc Sarl) to operate within the metropolis.
“The services of the Wilaya of Casablanca have not issued any authorization to the company in question, neither for public transport services in Casablanca, nor to link users and owners of vehicles,” a statement issued by the province stated.
Here Is What You Need To Know
- The statement further noted that “the activities of the company in question are illegal and expose their managers as well as the drivers involved in the aforementioned activities to penalties provided for by the laws and regulations in force.”
- The statement from the Wilaya recalled that the said company had launched a transport service delivery offer in Casablanca by means of a Yassir mobile application, making it possible to connect customers and transport service providers.
- The statement also noted that Yassir had also gone ahead to put online a website www.yassir.ma presenting the transport service offer and allowing the said application to be downloaded. This, the statement declared was illegal.
“A memorandum of understanding was signed in Casablanca, between the Yassir company and the Democratic Union of Transport (SDT), allowing taxi drivers to use this [Yassir] application…However, before the launch, an official application will be made in Casablanca,” Yassir said in a statement in July 2019, when it arrived in Morocco.
- Yassir’s operations in Casablanca will not be the first to be declared illegal by the city’s authorities. In 2015, authorities issued a press release stating that “Uber Maroc’s activities in Casablanca are illegal” and that its activities are “not authorized, and expose people working there, as well as the drivers involved with the company to sanctions.” One of Uber’s sins was that while pretending to partner with local tourist transportation unions, it catered to young Moroccans using local credit cards — not tourists. In 2018, battered by the continued frustration, Uber folded up and left Morocco.
- Morocco’s regulatory framework on ride-hailing is simple: do so through registered taxi unions only. Little wonder Heetch, a French ride-hailing startup, had claimed, at one time, that it was the only legal ride-sharing app in the North African country, because it had taken major drivers unions onboard before launching in the Moroccan market. In May 2019, Heetch raised $38 million to pursue its ride-hailing journey in France, Belgium and Morocco.
Yassir Morocco Casablanca Yassir Morocco Casablanca
What Is Yassir’s Fate In Morocco Going Forward?
Apart from Casablanca, Yassir operates in three other Moroccan cities namely Tangier, Marrakech and Agadir. It launched those operations last March and they “conformed with the laws in force in particular, the Dahir №1 63–260 as well as the regulations enacted by the wilayas of the Souss-massa regions and Marrakech Safi,” a statement from the operator read. The startup is also planning operations in Morocco’s other cities of Rabat, Mohammedia, Fes and Oujda.
Loosing Casablanca is, however, a big loss in the meantime. Casablanca, home to close to 4 million people, is Morocco’s business and economic capital, and holds a large number of expatriate workers. The city is also home to the Port of Casablanca, one of the largest artificial ports in the world, and the second largest port of North Africa, after Tanger-Med.
A Look At The Startup Yassir
Founded in Algeria in 2017, Yassir was quickly presented as a serious threat to Uber in the Middle East and North Africa. YA Technologies, which developed it, was launched by three Algerians Al-Mahdi Yettou, Noureddine Tayebi and Mustapha Baha, all graduates of the National Polytechnic School of Algeria and international universities.
Yassir already has more than 1.5 million users as at March this year as well as more than 10,000 partner drivers in the Maghreb region.
In recent times, new apps have been disrupting Morocco’s taxi industry. Before now, Yassir competed with a number of taxi ordering apps already on the market including Heetch and Roby. While Heetch operates in Casablanca, Rabat and Marrakech, Roby Taxi has been operating in Marrakech and, recently in Casablanca.
Wilaya is a local word for province.
Charles Rapulu Udoh
Charles Rapulu Udoh is a Lagos-based lawyer who has advised startups across Africa on issues such as startup funding (Venture Capital, Debt financing, private equity, angel investing etc), taxation, strategies, etc. He also has special focus on the protection of business or brands’ intellectual property rights ( such as trademark, patent or design) across Africa and other foreign jurisdictions.
He is well versed on issues of ESG (sustainability), media and entertainment law, corporate finance and governance.
He is also an award-winning writer