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Why Uber suspended operations in Tanzania

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Uber CEO

Ride-hailing firm, Uber has suspended its operations in Tanzania due to stiff regulatory policies from Thursday April 14, 2022.

This was closed by the ride hailing firm via a statement issued on Thursday.

According to the firm, the decision was attributed to the guide set by the Land Transport Regulatory Authority (LATRA), which it said poses significant challenges for systems like Uber to continue to provide services to its customers..

What Uber is saying about suspension

It stated, “Our goal is to be a key partner in various cities by providing efficient transportation, creating economic opportunities that give drivers the freedom to earn an income for the time they want and contribute to government revenue.

“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.”

The company said the decision came after the authorities set regulations that are a major challenge for systems like Uber to run its business adding that it will be working closely with the drivers on this transition.

Tanzania through Vision 2025 is committed to building a strong, diverse, resilient and competitive economy that is in line with regional and international market and technological changes. We hoped that this would include creating an enabling environment for domestic and international trade to thrive in a positive and balanced way, but unfortunately, the situation is contrary to expectations.

“Although we have shut down UberX, UberXL and UberX Saver services in Tanzania, 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,” it added.

What you should know

Tanzania ranks 141 on the ease of doing business ranking with a DB score of 54.5 while Nigeria ranks 131 with a DB score of 56.9 on the list of 190 counties

The ease of doing business score shows an economy’s absolute position relative to the best regulatory performance, whereas the ease of doing business ranking is an indication of an economy’s position relative to that of other economies.

Economies that score highest on the ease of doing business share several common features, including the widespread use of electronic systems.