• Uber ended its operations in Tanzania on January 30, 2026

• The exit follows years of tension over fares, commissions, and regulation

• The move leaves more space for local and regional ride-hailing platforms

Uber has ended its ride-hailing operations in Tanzania, citing longstanding disagreements with the authorities over pricing rules, commissions, and the regulatory framework governing the sector. The U.S.-based group said its services stopped on January 30, 2026.

“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 sent to users.

Uber’s departure reduces the supply of app-based transport services in Dar es Salaam and other major cities, and strengthens the position of local and regional platforms such as Little and Bolt, which are viewed as more compatible with Tanzania’s regulatory environment.

The decision follows a prolonged dispute with the Land Transport Regulatory Authority (LATRA), which regulates ride-hailing platforms under rules similar to those applied to traditional transport operators. LATRA sets reference fares, imposes minimum prices per trip, and caps the commissions charged by platforms.

These constraints limit pricing flexibility, a core element of the business model used by global ride-hailing companies, which typically rely on commissions of between 18% and 30% and on dynamic pricing to balance supply and demand.

Tensions peaked in 2022, when LATRA introduced fixed per-kilometer and per-minute fares, imposed a minimum price, and capped commissions at 15%, down from nearly one-third previously. Uber responded by suspending services in several cities, arguing that its model had become unviable.

In early 2023, the authorities partially eased the framework, allowing commissions to rise to around 25% and reinstating limited booking fees. Uber resumed operations, but operators remained exposed to rapid regulatory changes and tight price controls.

The latest withdrawal leaves Tanzania’s ride-hailing market with fewer international players. Several global competitors had already scaled back their presence during earlier disputes, while local platforms continue to serve a mass market, often relying on cash payments and operating with lower margins.

For users, Uber’s exit could reduce promotional offers and increase waiting times, particularly in outlying areas. For drivers, commission caps mean a higher share of revenue per trip, but also fewer bonuses and incentives typically offered by large international platforms.

Fiacre E. Kakpo