On 18th January 2023, ride-hailing app Uber announced that it has resumed its services in Tanzania after it suspended UberX, UberXL, and UberSave services on 14th April 2022 following the new fares set by the Land Transport Regulatory Authority (LATRA).
In March, LATRA issued an order requiring 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.
In a statement, Uber explained that this poses significant challenges for the company to continue to provide services to customers in the country and decided to suspend its services.
However, on 3rd January 2023, LATRA introduced new fares for online taxis, motorbikes, and rapid transit buses (BRT) operating in the country and raised 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%.
Uber and its competitor Bolt welcomed the new pricing, stressing that the move was a win-win situation for all stakeholders.
“We are excited to kick off the year on such a positive note by re-entering the Tanzanian market. It is our priority to provide a platform where drivers can make substantial earnings while providing convenient and reliable options for riders In Tanzania,” Uber said in a statement.