Uber halts operations in Tanzania amid unfavourable regulations

Uber Technologies’ ride-sharing app Uber, announced that they have closed its services in Tanzania citing unfriendly regulations.

Uber halts operations in Tanzania amid unfavourable regulations

The US-based ride-sharing app, Uber, has been a key partner in providing efficient transportation and opportunities that give drivers the freedom to earn an income at their own time of convenience.

They have been operating actively in Tanzania since 2016.

Uber Tanzania cited that they will suspend Uber X, UberXL, and Uber X Saver services in the country from today.

According to a press release by Uber Tanzania which stated as follows, ”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 to provide services."

The decision comes after the transport authorities set regulations that challenge the business operations of various ride-sharing platforms in Tanzania.

Tanzania’s Vision 2025 strategy is committed to building a strong, diverse, resilient, and competitive economy that is in line with the regional and international market as well as technological changes.

The strategy includes the creation of an enabling environment for domestic and international trade to thrive in a positive and balanced way. But according to Uber Tanzania, the situation is contrary to expectations.