Uber and Bolt drivers try to stop profit surge as Tanzania reclaims 25% TechCrunch

A mere year later Tanzania has been crowned with commissions that have had online calling companies such as UberBolt charges 15% from its partners. The authority responsible for ordering has backed away, ruling out the possibility of drivers’ increased earnings.

After Latra issued a notice on December 30 directing that the fee be increased to 25%, the Land and Transport Regulatory Authority (Latra), replaced the March 2013 direction. Latra sets and approves prices, even for those working in the car rental sector.

Uber and Bolt, its main competitor across Europe and Africa, stopped some of its services last April. They claimed that reducing partners’ commissions would reduce their profits. Drivers who, like their counterparts from Kenya, protested against low earnings from the app in the past, will now earn higher fees.

Uber has resumed operations in Tanzania

Uber, which in April suspended its UberX, UberXL, and UberSave services, began efforts Monday to fully resume operations, TechCrunch learned. Bolt whose services were restored on October. Bolt was charged 20% and Uber charged 25% commission. Their withdrawal has left the market to local brands like Little which charges a 15% commission and Ping.

“We made the difficult decision to pause our operations in Tanzania because the regulatory changes introduced created an environment that was difficult for our business to operate in. Since the pause, we have maintained our engagements with LATRA and other regulatory bodies in Tanzania as a show of our commitment to resuming full operations in the market, and providing drivers with an avenue to earn and passengers an enhanced mobility option,” said Uber’s chief communications officer, East and West Africa, Lauren Ondoro.

“We welcome the new pricing order issued by the Land and Transport Regulatory Authority which we believe will contribute significantly to the growth and development of the taxi industry in Tanzania,” said Onduru.

After stakeholders, including representatives of Uber and Bolt, demanded a review of pricing, the resumption e-recall services was announced by Tanzania last September as a compromise and that both companies would resume operations.

Our engagements and efforts are directed at creating a regulatory environment that facilitates mobility services in Tanzania for drivers, vehicle owners, passengers, and transport operators. “The overall objective was to develop the emerging taxi segment of the market,” a Bolt spokesperson said, adding that the company reinstated all its services on October 13, 2022.

Bolt stated that some changes in passenger fare pricing will be made soon after LATRA’s decision.

After new regulations came in force, Kenya, Tanzania, and Kenya also established a commission of 18%. Taxi operators have not been able to reverse the new regulations.