Uber Exits Tanzania as Fare Controls Reshape Ride-Hailing Market

Uber has announced that it will stop operating in Tanzania from 30 January 2026, marking the end of years of tension over pricing, commissions, and regulatory oversight. The decision raises broader questions about how well global ride-hailing models can function in markets where governments tightly control fares.

With Uber’s departure, riders in Dar es Salaam and other major cities will have fewer options, while local and regional platforms such as Little and Bolt gain more room to expand. These companies have adjusted more easily to Tanzania’s regulatory environment, which treats ride-hailing closer to traditional public transport than a free-market service.

After careful consideration, Uber has made the difficult decision to discontinue the Uber App services in Tanzania from 30 January 2026, the company said in a message to customers shared last week. We remain deeply committed to the region and continue to focus on creating reliable mobility solutions and economic opportunities for drivers and communities.

A Long Dispute Over Pricing and Control

Uber’s exit follows a prolonged standoff with the Land Transport Regulatory Authority, which oversees ride-hailing in Tanzania. Unlike regulators in many other markets, LATRA sets guide fares, minimum prices, and commission limits for platforms.

These rules restrict how companies adjust pricing in response to fuel costs, inflation, or changes in demand. They also cap how much platforms can earn from each trip.

For companies like Uber, which typically charge commissions between 18 and 30 percent and rely on dynamic pricing and incentives to balance supply and demand, such restrictions weaken the core mechanics of their business model.

Without the ability to freely adjust fares or offer flexible bonuses, platforms struggle to maintain profitability and attract enough drivers during peak periods.

The 2022 Crisis and Temporary Recovery

Regulatory tensions reached a peak in 2022 when LATRA introduced stricter controls. The authority implemented fixed fares per kilometre and per minute, imposed a minimum trip price, and reduced platform commissions to 15 percent. Booking fees were also removed.

In response, Uber suspended operations in several cities, including Dar es Salaam, Dodoma, Arusha, Mwanza, and Zanzibar, arguing that the model was no longer financially viable.

In early 2023, regulators softened some of the rules. Commissions were allowed to rise to around 25 percent, and a small booking fee was reinstated. Uber resumed services shortly afterward.

However, the episode highlighted the risks of operating under a framework where pricing rules can change quickly and with limited consultation.

Fewer Global Players, Stronger Local Platforms

Uber’s latest exit further reduces the presence of international ride-hailing companies in Tanzania. Several foreign platforms had already scaled back during earlier disputes.

Local and regional services, particularly Little, have continued to operate by aligning their models with LATRA’s expectations. These platforms often rely more on cash payments, lower commission structures, and simpler incentive systems.

Bolt, Uber’s main global competitor in many African countries, also adjusted its strategy in Tanzania. During periods of strict regulation, it shifted more focus toward corporate and institutional clients rather than mass-market riders.

As international players retreat, domestic and regional companies are likely to gain greater influence over pricing and service patterns.

Impact on Riders and Drivers

Uber’s departure is expected to affect both ride availability and pricing behavior.

Promotional discounts, coupons, and heavily subsidised trips are typically funded by large commission pools and investor backing. With fewer global players willing to absorb losses, such campaigns may become less common.

Riders in suburban and low-demand areas may experience longer waiting times, especially during peak hours. At the same time, regulated fare bands limit how much prices can rise, reducing incentives for drivers to operate in less profitable locations.

For drivers, lower commission caps mean they keep a higher percentage of each trip. However, this benefit is offset by reduced access to bonuses, guaranteed earnings schemes, and incentive programmes that large platforms often provide.

As major operators scale back, many drivers are likely to rely even more heavily on multiple apps to maintain stable income. This pattern of working across platforms is expected to deepen under tighter margins.