Uber has halted its activities in Tanzania today, claiming a harsh regulatory climate that made it difficult for the ride-hailing business to continue operating in the East African country.
The primary contributor, according to Uber, is the Land Transport Regulatory Authority’s (LATRA) “guide fare.” The regulator determines and authorizes pricing for ride-hailing businesses in the nation, thereby removing the power of companies like Uber and Bolt to set their costs. Due to rising gasoline prices, the authority recently raised the per-kilometre charge for ride-hailing providers.
In response to questions from TechCrunch, Uber, which made its debut in Tanzania in 2016, stated that the government issued an order in March forcing ride-hailing businesses in Tanzania to reduce their service cost from the current 25% commission to 15%. The government denied Uber’s request to have this reviewed.
“We have made the tough choice to stop operating in Tanzania as of Thursday, April 14, 2022.” The Land Transport Regulatory Authority’s (LATRA) recommended fee has made it difficult for systems like Uber to continue to deliver services to our consumers. We are finding it increasingly difficult to continue providing services. In a statement, Uber stated, “We will not be able to provide services until the atmosphere becomes conducive for us to continue delivering services.”
“The judgment comes after the government imposed laws that make it difficult for companies like Uber to operate. We will work closely with the drivers on this transition,” it stated.
Uber’s activities in Tanzania have been halted indefinitely, while the firm has suggested that they may reopen under more lenient conditions.
“We had hoped that this would entail providing an enabling climate for local and international trade to develop in a positive and balanced way,” it stated.
“Although we have suspended UberX, UberXL, and UberX Saver services in Tanzania, we are prepared to work with the appropriate authorities to build legislation that will allow the technology to thrive, allowing us to resume offering our preferred services.”
