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New Move to Restrict Ride-Hailing Companies
Economy, Sci & Tech

New Move to Restrict 2 Iranian Ride-Hailing Apps

The National Competition Council says it will introduce a new mechanism for overseeing operations of ride-hailing services.

It is to announce a pricing system for services offered by businesses like Snapp and Tap30, the state broadcaster reported on its website IRINN.ir. No further details were available.

Given the organization’s well known protective approach towards traditional businesses like the Tehran Taxi Organization, the new move is seen as another tactic to restrict the operations of the ride-hailing services that have flourished immensely in recent months.

Since their initial launch in Iran, ride-hailing companies have made use of competitive pricing systems and charge passengers almost less than half the normal fare.

However, so far few if any have been able to comprehend how the two companies operate, grow so fast and at the same time make a profit.

Update: There have been multiple reports of Snapp and Tap30 going down on Tuesday. Snapp announced on Twitter that the application was unavailable temporarily, due to some technical problems.

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