Tanzania has reviewed tariff guidelines requiring ride-hailing operators to cut their commissions, giving a reprieve to Uber and Bolt, which had threatened to quit the market citing stringent regulatory environment.
The Land Transport Regulatory Authority (Latra), which sets and approves fares for ride-hailing operators, says the companies are now free to charge up to 25 percent on commissions and three percent as the 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 regional manager for Eastern Africa, Kenneth Micah, termed the move as “a win-win situation for all stakeholders”.
In March 2022, Latra capped commissions the companies charge drivers at 15 percent from 33 percent and scrapped booking fees.
Uber suspended its services a month later, in April, while Bolt switched to corporate clients in August. In September, the government announced that it was engaging the operators and other industry stakeholders to address the challenges. It also said that the firms had agreed to resume services.
In light of Latra’s new regulations, Bolt has said it would make changes to 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.
