Bolt and Uber to make a U-turn as Dar relaxes regulations

The Tanzanian government has agreed to work with both companies to ensure smooth operation

Both companies suspended their services as a result of strict regulatory policies imposed by the Tanzanian government

Ride-sharing services Uber and Bolt are set to resume their operations in Tanzania after weeks of uncertainty.

The Tanzanian government has decided to let both companies function within its borders after the initial complaints and challenges that stirred complications were resolved.

The announcement was made by the director general of the Land Transport Regulatory Authority(LATRA), Mr. Habibu Suluo while addressing the media in Arusha.

“Uber suspended their operations after LATRA’s announcement of online fares and e-ticketing system that directed them to charge legal fees with an executive order to be obeyed and filed a case at the competition council to challenge our decisions,” he said. “However, Bolt continued to provide the service but later they submitted a report saying they are suspending their services, but, we called them so that we can discuss since we believed we can reach an agreement through dialogue.” He concluded.

The meeting was held on the 5th and 6th of September, with the African representatives of both companies representing the interest of the international conglomerates.

Government regulations that restricted the operations of Uber and Bolt, were imposed on both companies back in March. Both companies were forced to seize operations, effective immediately in the same month. While Uber completely adhered to the government sanctions, Bolt limited its operations to just providing services to only corporate clients.

Uber seized its operations on 14 April citing ease of doing business as the reason why it can’t continue to service the Tanzanian people. According to the company, it noted that LATRA had created stiff regulatory policies that made running a smooth business operation in the country, impossible.

“We have made the difficult decision to suspend our services in Tanzania from Thursday 14 April 2022. The guide fare set by the Land Transport Regulatory Authority (LATRA) has posed significant challenges for systems like Uber to continue to provide services to our customers. “It becomes increasingly difficult for us to continue providing services. We will not be able to provide services until the environment becomes friendly for us to continue providing services.”

The company expressed an interest in working with the Tanzanian government to create an enabling environment for international businesses to thrive. Five months later, that intended synergy has seen significant progress.

SOURCE: BUSINESS INSIDER