Uber has ceased operations in Tanzania, stating that an unpleasant regulatory situation has made it difficult to continue its services in the East African country. In a press release, the ride-hailing company cited the “guide fare” issued by the Land Transportation Regulatory Authority (LATRA) as the exact reason for deciding to suspend its operations.
“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 stated.
Uber has said that it would like to continue to provide ride-hailing services in Tanzania, howbeit, the decision comes after the authorities set regulations that are a major challenge for systems like Uber to run its business. “We will be working closely with the drivers on this transition, ” the company added.
For Uber, the situation is quite unfortunate. The reality is quite different from what it had expected, and the company hopes that it would entail the creation of a favourable climate for both local and foreign trade.
“Although we have closed down the services of UberX, UberXL and UberX Saver in Tanzania, we are ready to work with the relevant authorities to develop regulations that will enable the technology to thrive, so that we can resume providing our favorite services.”
Uber has been providing transportation services in Tanzania since 2016 via UberX, UberX Saver and UberXL services. The app is already operating in 80 countries of the world, and 11 of them in Africa.
