Ride-Hailing App Yango Banned in Morocco Over Regulatory Violations

After Uber, it is Yango’s turn to end its activities in Morocco, for the same reasons. The two companies started operating "without prior authorization." "Given the nature of its activities which constitute a violation of the regulations relating to road transport and given the dangers of clandestine transport, the Wilaya of the Casablanca-Settat region informs all citizens that the activity of this company is illegal," a statement from the local authorities dated July 11 said.

The authorities in the region have also warned VTC drivers "doing business with unauthorized transport companies" that they risk "administrative and legal sanctions within the framework of the regulations and supervision of the conditions for the exercise of public passenger transport services."

Economists have looked into the issue. Hicham Alaoui, CEO of Allianz Trade, specifies that the public passenger transport sector is "particularly regulated in Morocco" and that any investor must "obtain the appropriate authorizations in order to be able to carry out his activity in strict compliance with the economic sovereignty of the country." The economist believes it is urgent "to settle the thorny issue of the taxi sector in our country. The latter have historically benefited from a de facto monopoly on urban and peri-urban passenger transport," reports Challenge.

Economist Mehdi Fakkir, for his part, points out that when the economic model of mobility platforms "has impacts on the socio-economic architecture of a country, it is problematic" and that there is a need to "preserve a socio-economic balance."