Uber is set to continue its Tanzanian ride-hailing operations in line with the local policy — Tanzania’s Land Transport Regulatory Authority (LATRA) modified policy increased ride hailers commission fee to 25%, higher than the previous policy. The previous policy mandated ride-hailing companies to charge drivers 15% which influenced Uber to suspend their services until now.
At the time Uber suspended its operations in Tanzania, Bolt kept serving the corporate passengers since LATRA raised fares and reduced commissions for ride-hailing companies. Bolt was keen on penetrating Africa which explained why they continued ride-hailing when Uber left. Bolt charged a %20 commission off drivers while Uber charges were five percent higher.
Bolt could survive the LATRA policy because the reduced charges were not effective due to the five percent reduction in contrast with the ten percent reduction Uber experienced.
LATRA has reportedly changed its policy to increase the charges ride hailers commission their drivers which has also invited Uber to resume its ride-hailing operations in Tanzania. According to Uber, the ride-hailer will continue charging %25 off drivers’ commissions which makes their business swerve the inflated economy and gain generous capital.
“We made the difficult decision to pause our operations in Tanzania because the regulatory changes that were introduced created an environment that was challenging for our business to operate under.” Uber’s East and West Africa Head of Communications, Lorraine Onduru said that “the new pricing order issued by the Land and Transport Regulatory Authority, which we believe will significantly contribute to the growth and development of the ride-hailing industry in Tanzania.”
LATRA policy transition was influenced by the local stakeholders indulging the regulator to promote a fair ecosystem that embraces all the partisans to be productive. Uber is back in Tanzania which makes Bolt adjust its seat belt to compete with its rival likewise Bolt’s consent to restructuring its fare price in line with the local economic standard.