Ride-hailing Uber ceased operations in Tanzania from 30 January 2026, ending years of protracted regulatory battle with local regulators.
Tanzania is among the top five African economies with tough regulatory measures for foreign companies.
It is trailed by some of the continent’s big economies, such as Ethiopia, which has historically been one of the most restrictive markets in Africa.
Ethiopia closed windows in key sectors such as banking, telecoms, retail, and logistics, which had long been closed to foreign ownership.
In Tanzania, a ride-hailing operator licence is set at approximately Tsh.3,000,000 per year ($1,400) under the latest amended schedule. This applies to foreign and domestic operators alike.
Uber is American-based and its decision to shut operations in the Samia Suluhu-led country is tied to five major reasons;
Strict Government Control Over Pricing
Tanzania’s Land Transport Regulatory Authority ( LATRA) regulates ride-hailing services much like traditional taxis setting guide fares, minimum trip prices and per kilometre rates.
Uber has been crying foul, claiming the structure limits its ability to adjust prices in response to demand, fuel costs or driver availability.
Without flexible pricing, the company said it struggled to balance supply and demand, a key pillar of its business model.
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Caps on Platform Commissions
LATRA imposed a 15% ceiling on commissions that ride-hailing platforms can deduct from drivers’ earnings, significantly lower than Uber’s global average of 25%-30%.
Commissions fund Uber’s technology, customer support, marketing and driver incentives. The reduced margin made it difficult for the company to sustain operations at scale while remaining profitable in Tanzania.
Dynamic Pricing
Uber’s algorithm relies on dynamic pricing to encourage more drivers to come online during peak demand periods. In Tanzania, regulators effectively removed this tool by enforcing fixed fare brands.
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Without surge pricing, driver availability during busy hours declined, leading to longer wait times and reduced reliability, weakening the platform’s value for both riders and drivers.
Policy Reversals
Uber’s relationship with Tanzanian regulators has been marked by abrupt changes, where in 2022, the company suspended services after new rules were introduced. Operations resumed in 2023 when some restrictions were relaxed, only for tighter oversight to return later.
This policy unpredictability created long-term uncertainty, making it risky for Uber to invest in driver incentives, marketing campaigns or service expansion.
Regional Competitors
While uber struggled under Tanzania’s harsh regulations, local and regional platforms such as Little and Bolt adapted more easily. These companies operate with lower commission expectations, greater reliance on cash payments and models better aligned with LATRA’’s rules.
As a result, Uber faced shrinking competitive advantages in a market increasingly shaped by state-controlled economics rather than platform-driven innovation.
Bolt is the most used ride hailing in Tanzania with about 30,000 drivers, compared to Little Cab that has a smaller, regional competitor focusing on specific segments rather than mass-market dominance.
