Uber suspends Tanzania operations due to tough government regulations

Uber has suspended its operations in Tanzania due to tough regulations by the government. According to Uber, what killed the camel’s back was “guide fare” by the Land Transport Regulatory Authority (LATRA) as the main contributor. The ride-hailing company says it’s becoming impossible to operate in the country. 

In a statement, Uber said, the authority sets and approves fares for ride-hailing operators in the country, taking away the ability of companies like Uber and Bolt to set prices. 

This comes after the authority issued an order, asking ride-hailing companies in Tanzania to lower their service fee to 15% from the 25% commission it charges. 

“We have made the difficult decision to suspend our services in Tanzania from Thursday 14 April 2022. The guide fare set by the Land Transport Regulatory Authority (LATRA) has posed significant challenges for systems like Uber to continue to provide services to our customers. It becomes increasingly difficult for us to continue providing services. We will not be able to provide services until the environment becomes friendly for us to continue providing services,” reads Uber’s media statement.

“The decision comes after the authorities set regulations that are a major challenge for systems like Uber to run its business. We will be working closely with the drivers on this transition,” it said. 

Still not clear, when will Uber resume their services in the country. 

Uber’s operations in Tanzania will remain suspended indefinitely, although the company hinted that they could resume services with friendlier regulations.

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