Ride-hailing app Uber resumed its services in Tanzania on Wednesday after settling a fare dispute with the government.
Uber suspended services in the East African country last April after the government introduced legislation capping maximum commission from drivers at 15 per cent from the previous 33 per cent.
The ride-hailing company said the new regulations made it difficult to continue operating while the government defended them as maintaining competition and ensuring affordable taxis.
After months of negotiations, Tanzania’s transport regulator last month allowed ride-hailing companies to charge up to 25 per cent commission and a 3.5 per cent booking fee.
“We are excited to kick off the year on such a positive note by re-entering the Tanzanian market. It is our priority to provide a platform where drivers can make substantial earnings while providing convenient and reliable options for riders In Tanzania,” Uber said in a statement.
