Just a year after Tanzania capped the fees charged to partners by electronic ride-hailing companies such as Uber and Bolt to 15%, the responsible authorities reversed the order, robbing drivers of the prospect of increased earnings.
The fee was increased to 25% last Sunday after the Land and Transport Regulatory Authority (Latra) issued a notice on December 30th. Latra sets and approves fares for all operators, including the ride-hailing sector.
Uber and its main European and African rival Bolt suspended some services last April, arguing that cutting partner fees would reduce profits. However, lower fares mean more income for drivers, who, like Kenyan drivers in the past, have protested against making less money from the app.
Uber resumes full operations in Tanzania
Uber, which shut down UberX, UberXL and UberSave in April, began working to resume full operations on Monday, joining Bolt, which resumed service in October, TechCrunch learned. Uber charged his 25% commission and Bolt charged his 20%. Their exit left the market to domestic brands like Little and Ping, who charge his 15% commission.
“We made the difficult decision to suspend our operations in Tanzania because the regulatory changes that have been introduced have created a difficult environment in which to operate our business. We remain engaged with other regulators, demonstrating our commitment to resuming full operations in the market and providing drivers with the means to earn money and riders, as well as enhanced mobility options,” Uber said. I’m here. Lorraine Ondul, Head of Communications for East and West Africa, said:
“We welcome the new pricing orders issued by the Land Transport Regulatory Authority, which we believe will contribute significantly to the growth and development of Tanzania’s ride-hailing industry,” said Onduru.
The resumption of electronic ride-hailing services comes after stakeholders, including representatives of Uber and Bolt, lobbied for a price review. Tanzania announced in September last year that a compromise had been found and the companies would resume operations.
“Our commitments and commitments are aimed at ensuring a regulatory environment that enables mobility services among drivers, vehicle owners, passengers and ride hailers in Tanzania. ,” said a Bolt spokesperson, adding that the company has resumed all services on October 13, 2022.
According to Bolt, several changes to passenger fare pricing will be introduced soon following LATRA’s decision.
With the exception of Tanzania, Kenya also capped fees at 18% last year after new regulations came into force. Efforts by ride-hailing operators to lift the new regulations have so far been unsuccessful.
