Experts warn of potential dangers of unlicensed rideshare applications

AMMAN — Unlicensed rideshare applications in Jordan have the potential to cause major problems for citizens, with tax evasion and the neglect of employees’ obligatory social security subscriptions being “just the tip of the iceberg”, according to economists. 

The Director-General of the Land Transport Regulatory Commission, Abdul Rahim Al Wreikat, revealed to Al Mamlaka TV that there are about 38 unlicensed rideshare applications in Jordan, according to licensed transport companies. 

However, the number of vehicles operating through these unlicensed applications remains unknown, Wreikat said. 

“There are only seven licensed transport companies in Jordan, four of which are operating and three are defaulting,” Wreikat added.

There are currently 12,000 vehicles licensed to operate through ridesharing apps, he said. 

Economist Hosam Ayesh told The Jordan Times that these companies are operating in the “shadow economy,” meaning that they are not registered with the Ministry of Industry, Trade and Supply or the Ministry of Transport. 

As a result, they are not paying income tax or licensing fees to the government, and are not necessarily providing their employees with their rights as mandated by law, Ayesh said.

“In addition to the economic implications, unlicensed rideshare applications are also having a negative impact on the environment,” economist Khaled Salameh told The Jordan Times. 

These unlicensed operators contribute to the depreciation of streets, and the pollutants emitted by their vehicles have an adverse effect on the environment, Salameh noted.

“It is also worth noting that citizens are exposed to a significant level of risk when they use unlicensed ride-hailing applications,” Salameh noted. 

“Many such apps do not provide adequate safety measures or background checks for drivers, which can lead to serious incidents or accidents,” he added. 

Salameh added that it is crucial that citizens exercise caution and only use licensed rideshare services that comply with safety regulations.

 However, until the necessary steps are taken to regulate the industry, citizens will continue to suffer the consequences, Salameh said.