The American mobility service provider Uber has decided to suspend its services in Tanzania from Thursday 14 April 2022 following the guide fare set by the Land Transport Regulatory Authority (LATRA).
LATRA issued an order in March 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 notice, the Regulator explained that it has set the limit to 15% following the complaints issued by Uber’s network taxi drivers.
In a statement, Uber explains that the guide fare poses significant challenges for the company to continue to provide services to customers in the country.
The company stresses that it will not be able to provide services until the environment becomes friendly enough to continue providing services and that it will return to launch its services as soon as there are new regulations in place.
Headquartered in San Francisco, California, Uber was founded in 2009. In 2012, it started its international expansion. Uber Tanzania officially launched in June 2016. At the time, the company claimed that the Regulators have been very supportive of their technology.