Ride-hailing company Uber has suspended its operations in Tanzania indefinitely following the imposition of a “fare guide” imposed by the Land Transport Regulatory Authority (LATRA).
“We have made the difficult decision to suspend our services in Tanzania from Thursday 14 April 2022. 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,” the company said in a statement.
“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.”
LATRA regulates fares for ride-hailing operators in Tanzania, limiting service providers’ ability to set prices for the industry.
The authority recently doubled per-kilometer rates for ride-hailing companies due to increasing fuel prices.
Uber noted that the new fare guide contrasts Tanzania’s Vision for Development 2025, which is committed to building a strong, diverse, resilient and competitive economy that is in line with regional and international market and technological changes
“We are ready to work with relevant authorities to develop regulations that will enable the technology to thrive, so that we can resume providing our favorite services to the general public,” Uber said.
The government has not yet issued a formal statement in response to the news of Uber’s suspension of its services.