Uber hints at resuming services after regulatory changes

Uber has hinted at plans to resume operations in Tanzania after the government modified regulatory directives that had been boycotted by ride-hailing companies.

Uber suspended its services in Tanzania last year, saying government legislation that raised fares and cut its commission made it difficult for the company to operate.

However, the new regulatory changes in which the government raised commission and reinstated booking fee, are seen as a relief to the companies.

“We welcome the new pricing order introduced by the Land and Transport Regulatory Authority (Latra) which we believe will significantly contribute to the growth and development of the ride-hailing industry in Tanzania,” Uber’s head of communications for East and West Africa Lorraine Onduru told The Citizen in e-mailed response.

Uber has been offering services in major cities since 2016.

“We look forward to continuing to provide a platform for drivers to earn and riders to get from one place to another in Tanzania,” she said.

In a March 2022 price order, Latra reduced the commission for ride-hailing providers from 33 percent to 15 percent. It also eliminated the booking charge, which was a source of revenue for the businesses.

However, in a notice recently issued by Latra, the ride-hailing operators are now free to charge up to 25 percent in commissions and charge up to three percent as the booking fee.

“These new fares will be effective after 14 days of this notice,” Latra stated in the notice gazetted on December 30, 2022.

The new tariff guidelines for the ride-hailing industry were hailed by industry stakeholders as the result of stakeholder engagement.

“We would like to express our gratitude to Latra and the appropriate authorities for their tenacious efforts to see that the problems raised by business participants were rectified, creating an environment where everyone wins,” said the Bolt regional manager for Eastern Africa, Mr Kenneth Micah.

Other companies which operate ride-hailing services in Tanzania include Little Ride, Ping and In Drive.