Uber Reinstates 25% Commission Fee In Tanzania

Uber has officially reinstated its 25% commission fee in Tanzania after local officials backtracked on capping commissions on e-hailing companies at 15%. It’s main rival Bolt has also reinstated its previous commission fee at 20%

Tanzania’s Land and Transport Regulatory Authority (LATRA) had initially issued a directive in March last year that all e-hailing platforms had to cap their commission fees at 15% but on December 30 of 2022, the authority issued a notice removing the previous directive.

The new directive took effect last Sunday in Tanzania.

The initial directive by LATRA to cap commissions had ripple effects whereby companies like Uber and Bolt halted some of their services by claiming that reducing the commission on partners would dent their earnings.

Resumption Of Service By Uber and Bolt In Tanzania

Uber welcomed the new directive of the reversal of the capping of commissions.

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. We have, since the pause, maintained our engagements with LATRA and other regulatory bodies in Tanzania as a show of our commitment to resume full operations in the market, providing drivers with an avenue to earn and riders, an enhanced mobility option,” said Uber’s East and West Africa head of communications, Lorraine Onduru.

We welcome 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,” said Onduru.

Bolt also welcomed LATRA’s decision.

Our efforts and engagements were aimed at ensuring an enabling regulatory environment for mobility services in Tanzania among drivers, vehicle owners, passengers and ride-hailing operators. The overall objective was to develop the nascent ride-hailing sector in the market,” said a Bolt spokesperson.

Both Uber and Bolt officially restored their services in October of last year after coming to an agreement with government officials.

Bolt said that following the decision by LATRA, it will soon introduce some changes on passenger fare pricing.

Source: Techcrunch

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