Uber has officially ceased its operations in Tanzania as of January 30, 2026. This departure marks the end of a long-standing struggle between the global ride-hailing giant and Tanzanian authorities over how the digital mobility market should be governed.
The company on Monday informed riders through a brief message in its app that services in cities including Dar es Salaam, Arusha, Dodoma, Mwanza, and Zanzibar would no longer be available.
The withdrawal comes after a series of regulatory disagreements with the Land Transport Regulatory Authority (LATRA). At the heart of the conflict is a fundamental difference in business philosophy: while Uber relies on a flexible, algorithm-driven marketplace, LATRA has consistently treated ride-hailing platforms like traditional taxi services, imposing strict controls on pricing and earnings.
Key Reasons For Exit
Several specific regulatory hurdles made the Tanzanian market untenable for Uber:
Loss of operational tools: Without the ability to set commissions and adjust prices freely, Uber found it impossible to provide the sign-up bonuses and promotional discounts that typically drive its growth in emerging markets.
Commission caps: LATRA enforced a 15% ceiling on the commission platforms could collect from drivers. This is significantly lower than Uber’s standard global rate of 25%, which the company argues is necessary to maintain its technology and fund driver incentives.
Fixed pricing: Regulators mandated guide fares and minimum prices per kilometer and minute. This effectively stripped Uber of its ability to use dynamic or “surge” pricing to balance rider demand with driver availability.
This is not Uber’s first time stepping away from Tanzania. In April 2022, the company temporarily halted services for similar reasons. Although operations resumed in early 2023 after a brief period during which commission rates rose to 25%, the return to more restrictive oversight in 2026 ultimately led to this permanent exit.
For the local workforce, the departure presents a double-edged sword that touches on long-standing labor tensions. Historically, ride-hailing drivers across Africa have frequently organised strikes to protest low pay, rising fuel costs, and high platform commissions, which leave them with dwindling take-home earnings.
While the government-mandated 15% commission cap directly addresses these grievances by allowing drivers to keep a larger portion of each fare, Uber’s exit removes the very scale that made the job viable.
