Tanzania has reviewed tariff guidelines requiring ride-hailing operators to reduce their commissions, giving Uber and Bolt a reprieve after they threatened to exit the market due to the stringent regulatory environment.
According to the Land Transport Regulatory Authority (Latra), which sets and approves fares for both uber & bolt, the companies can now charge up to 25% in commissions and 3% as a booking fee.
“These new fares will be effective after 14 days of this notice,” Latra stated in the notice gazetted on December 30, 2022.
Bolt’s regional manager for Eastern Africa, Kenneth Micah, termed the move as “a win-win situation for all stakeholders”.
In March 2022, Latra reduced the commissions that companies charge drivers to 15% from 33% and eliminated booking fees.
Uber’s services were suspended a month later, in April, and Bolt switched to corporate clients in August. The government announced in September that it was working with operators and other industry stakeholders to address the issues. It also stated that uber & bolt had agreed to resume operations.
In light of Latra’s new regulations, Bolt has stated that it will change its commission and fare pricing structure in the coming days.
“Bolt shall continue to offer full-scale operations in order to ensure that hundreds of thousands of users in Mainland Tanzania continue to access affordable, safe and convenient means of moving around the city. We are also committed to ensuring that the thousands of drivers driving on the Bolt platform in Tanzania will continue to access earning opportunities,” the company said.
Uber is yet to respond to the news.
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