Tanzania has revised the tariff rules mandating ride-hailing companies to reduce their fees, giving Uber and Bolt a breather after they threatened to leave the market because of the harsh regulatory climate.
According to the Land Transport Regulatory Authority (Latra), which determines and authorizes ride-hailing operators’ prices, the businesses are now permitted to charge commissions of up to 25% and a booking fee of 3%.
In the notification that was gazetted on December 30, 2022, Latra noted that “these new fares will become effective after 14 days of this notice.”
Kenneth Micah, regional manager for Bolt in Eastern Africa, described the decision as “a win-win situation” for all parties. In March 2022, Latra eliminated booking fees and reduced commissions that the firms charge drivers to 15% from 33%.
Uber’s services were discontinued a month later in April, and in August, Bolt moved to serving business clients. The government said in September that it was working with operators and other industry players to solve the issues. Additionally, the businesses’ consent to restart services was stated.
Bolt has said that it would alter its commission and fee pricing structure in the upcoming days in response to the new Latralaws. It should maintain full-scale operations to guarantee that hundreds of thousands of users in Mainland Tanzania continue to have access to cost-effective, secure, and practical methods of commuting.
Thousands of Tanzanian drivers use the Bolt platform, and the firm is dedicated to making sure they can continue to access chances for employment. Uber has not yet responded to the news.