Tanzania Announces New Fares for Ride-Hailing Apps: Uber May Come Back

Tanzania’s Land Transport Regulatory Authority (LATRA) announced on 3rd January 2023 the new fares for online taxis, motorbikes, and rapid transit buses (BRT) operating in the country.

The fares will be implemented in the country in 14 days from the date of the announcement, said the General Director of LATRA Habibu Suluo.

Suluo explained that the new fare for fast buses is TZS 750, an increase of 100 shillings from the previous fare of TZS 650 for the main route and TZS 500 from TZS 400 for the feeder route.

Passengers connecting the main route with the feeder route will pay TZS 900 and for the route from Kimara to Kibaha, they will pay TZS 700.

Suluo also explained that internet taxis with a capacity of not more than four passengers will have a minimum rate of TZS 3,000 and a maximum rate of TZS 4,000 shillings for a trip not exceeding one kilometer.

The starting fare for internet taxis is TZS 500 to TZS 1,000, the fare per kilometer is TZS 800 to TZS 1,000, and the fare per minute is TZS 80 to TZS 100.

For online taxis with a capacity of not more than six passengers, the fare is TZS 4,000 to TZS 5,000 for a journey not exceeding one kilometer. The starting fare for these taxis is TZS 800 to TZS 1,300, the fare per kilometer is TZS 1,000 to TZS 1,200, and the fare per minute is TZS 80 to TZS 150.

As for motorbikes, the new fare for those that can carry no more than two passengers is TZS 1,000 to TZS 1,500, the starting fare is TZS 250 to TZS 350, the fare per kilometer is TZS 300 to TZS 400 and the fare per minute is TZS 50 to TZS 70.

For motorbikes with a capacity of not more than three passengers, the fare is TZS 2,000 to TZS 2,500 for a trip not exceeding one kilometer, the starting fare is TZS 350 to TZS 500, the fare per kilometer is TZS 500 to TZS 600 and the fare per minute is TZS 70 to TZS 90.

The new regulatory changes also raise the ride-hailing apps’ commission that now goes from a minimum of 10% to a maximum of 25%, and reinstates booking fees of up to 3%.

Following the announcement of the new fares, the regional manager for Eastern Africa of ride-hailing company Bolt Kenneth Micah said that the move was a win-win situation for all stakeholders.

And the head of communications for East and West Africa of ride-hailing company Uber said to the media that the new fares will significantly contribute to the growth and development of the ride-hailing industry in Tanzania and that the company looks forward to continuing to provide a platform for drivers to earn and riders to get from one place to another in the country.

Back in April 2022, Uber suspended its services in Tanzania following the guide fare set by LATRA in March which required ride-hailing companies in Tanzania to lower the service fee they charge from 25% to 15%, taking away the ability of these companies to set prices.