Mobility service provider, Uber has suspended its operations in Tanzania indefinitely following the imposition of a “fare guide” imposed by the Land Transport Regulatory Authority (LATRA).
The company, in a statement, said “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.”
It’s important to note that LATRA regulates fares for ride-hailing operators in Tanzania, limiting service providers’ ability to set prices for the industry.In a recent development, the authority doubled per-kilometer rates for ride-hailing companies due to increasing fuel prices.
Reacting to LATRA’s move, Uber noted that the new fare guide contrasts Tanzania’s Vision for Development 2025, which is committed to building a strong, diverse, resilient and competitive economy that is in line with regional and international market and technological changes.
Uber said “We are ready to work with relevant authorities to develop regulations that will enable the technology to thrive, so that we can resume providing our favorite services to the general public”.
As of the time of filing this report, the government was yet to issue a formal statement in response to the news of Uber’s suspension of its services.
