In the Casablanca-Settat region of Morocco, the ride-hailing industry has become a battleground for foreign transportation companies seeking to penetrate the market without obtaining proper permits and approvals. The most recent entrant, Yango, finds itself at the center of controversy as it faces accusations of violating local laws. The clash between formal taxi drivers and informal ride-hailing providers adds further complexity to the situation, leading to protests, calls for government intervention, and an increasingly challenging environment for all parties involved.

The regional wilaya of Casablanca-Settat has firmly accused Yango, a foreign transportation company, of flouting local laws and regulations. According to a recent statement, Yango has been operating its transportation services through the “Yango” mobile app in Casablanca without acquiring the necessary permits or official approval. This transgression extends not only to Yango but also to other companies offering similar services, as none of them have been granted licenses to utilize private vehicles for public transportation purposes.

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The controversy surrounding Yango’s entry into the local market stems from its employment of unlicensed vehicles and unprofessional drivers. Moroccan authorities have expressed concerns regarding these practices, emphasizing that they violate the country’s Highway Code, which governs professional driving standards and regulations for public road transport. The rise of ride-sharing apps like Yango has intensified tensions between traditional taxi drivers and informal ride-hailing providers. The taxi drivers argue that these services require stricter government oversight to protect their customer base and maintain fair competition.

The clash between formal and informal transportation providers has resulted in a flurry of complaints, with ride-share app users reporting incidents of harassment and even violence in extreme cases. In response to these challenges, the National Union of Taxi Professionals in Morocco called for a protest in front of the Ministry of Interior, urging the government to address the issues arising from the ride-hailing industry.

Regional authorities have been quick to caution citizens against engaging with unauthorized transportation providers, emphasizing the potential risks involved. Furthermore, they have warned drivers associated with these companies about the administrative and legal repercussions tied to public transport regulations and control. These measures aim to deter both passengers and drivers from participating in activities that violate Moroccan law.

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Yango’s legal challenges in Morocco echo the struggles faced by other ride-hailing startups in the region. Yassir, an Algerian ride-hailing startup, also encountered difficulties when the Casablanca-Settat region declared its operations in Casablanca illegal due to a lack of authorization. Yassir had launched its transport service delivery offer in Casablanca through a mobile application and website, but the authorities deemed these activities to be in violation of the law.

The regulatory framework in Morocco requires ride-hailing companies to operate exclusively through registered taxi unions. Uber, for instance, faced legal issues in 2015 when authorities deemed its activities in Casablanca illegal. The authorities emphasized the importance of partnering with local tourist transportation unions and focusing on serving tourists rather than primarily targeting local customers. In contrast, Heetch, a French ride-hailing startup, positioned itself as the only legal ride-sharing app in Morocco by collaborating with major driver unions before entering the market.

For Yassir and other ride-hailing startups, operating within the confines of Morocco’s regulatory framework remains crucial. Despite setbacks and legal challenges, Yassir continues to operate in multiple Moroccan cities such as Tangier, Marrakech, and Agadir. However, losing the opportunity to operate in Casablanca, Morocco’s business and economic capital, significantly impacts Yassir’s operations. Casablanca is home to millions of residents, including a significant number of expatriate workers. Moreover, it houses the Port of Casablanca, one of the largest artificial ports globally and the second-largest in North Africa after Tanger-Med.

In all, the ride-hailing industry in Morocco’s Casablanca-Settat region remains a challenging and contentious environment. Yango’s entry into the market has only added fuel to the fire, with accusations of violating local laws and regulations. The clash between formal taxi drivers and informal ride-hailing providers intensifies, prompting protests and calls for government intervention. As the ride-hailing graveyard in Morocco continues to grow, Yango joins the list of companies facing legal scrutiny in their quest to establish a foothold in the country’s transportation market. The resolution of these conflicts remains uncertain, leaving the future of ride-hailing services in Morocco’s Casablanca-Settat region hanging in the balance.

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Charles Rapulu Udoh

Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. 
As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard