Uber Exits Tanzania After Nearly a Decade of Operations

By Benadeta Mwaura - Reporter

Kenya, January 02,2026 - Uber has officially ceased its ride-hailing operations in Tanzania, with services ending as of January 30, 2026 after almost ten years in the East African nation.

The company informed customers via its app and communications that “Starting today, 30 January 2026, Uber services will no longer be available in Tanzania” and expressed “regret” for the inconvenience this may cause riders and drivers alike.

While Uber did not release a detailed public statement explaining every reason for the exit, multiple local reports and industry analysis suggest that a stringent regulatory environment and intense competition made the Tanzanian market difficult for the company to operate profitably.

The Land Transport Regulatory Authority (LATRA) in Tanzania has long been one of the most assertive regulators in the region, imposing fixed fare structures, commission caps and pricing controls that limited the flexibility Uber typically relies on with its dynamic pricing and incentive model.

Analysts point out that these rules, including requirements on fares and caps on commissions, eroded Uber’s ability to adapt to local conditions and balance costs with driver earnings.

LATRA’s regulation of guide fares and algorithmic pricing made it harder for the global app to sustain its business model, especially against local competitors like Bolt, In-Drive and Farasi that often offered lower commissions or pricing better aligned with regional demand dynamics.

Uber’s relationship with the Tanzanian market has been turbulent for years. Back in April 2022, the company suspended operations indefinitely after LATRA introduced controversial pricing and commission rules that Uber said made it “increasingly difficult” to offer services, at one point forcing it to cease service temporarily.

Uber then resumed services in early 2023 after negotiations and regulatory adjustments, but its position remained fragile amid ongoing policy pressure and strong competition from Bolt and other regional platforms.

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Uber’s exit has immediate implications for drivers and riders in Tanzania’s major cities, especially Dar es Salaam and Arusha, where the service had established a digital fleet of over 1,500 drivers by the time of closure.

Thousands of drivers who relied on Uber as a source of income will now need to transition to competing platforms or alternative transport services.

For urban commuters and tourists, the departure removes a well-known international mobility option, potentially shifting demand toward local ride-hailing apps or traditional taxi services. Reports from Tanzanian media note that Bolt and other apps already have strong footholds in the market and are anticipated to absorb much of the demand left behind by Uber’s withdrawal.

Uber’s exit from Tanzania aligns with a broader trend of global technology platforms reassessing operations in markets with tight regulatory frameworks or thin profitability margins. In other parts of Africa, such as Côte d’Ivoire, Uber has previously scaled back or exited amid competition and challenging conditions.

Industry analysts see this as part of Uber’s strategic rebalancing, prioritising markets where regulatory environments are more conducive to its flexible pricing model and where competition dynamics better support long-term profitability.