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Uber has suspended its operations in Tanzania today citing a tough regulatory environment that has made it difficult for the ride-hailing company to continue running in the East African country.
In a statement, Uber noted the “guide fare” by Land Transport Regulatory Authority (LATRA) as the main contributor. The authority sets and approves fare by ride-hailing operators in the country, taking away the ability for companies like Uber and Bolt to set prices. The authority recently doubled per kilometer cost recently owing to the increased fuel prices.
“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,” Uber said in a 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.
The operations will remain suspended until further notice, however, Uber in the statement hinted that they would resume with the implementation of better terms.
“We hoped that this would include creating an enabling environment for domestic and international trade to thrive in a positive and balanced way, but unfortunately, the situation is contrary to expectations,” it said.
“Although we have closed down the services of UberX, UberXL and UberX Saver in Tanzania, we are ready to work with the relevant authorities to develop regulations that will enable the technology to thrive, so that we can resume providing our favorite services.”
Uber launched in Tanzania in 2016.
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