Uber exits Tanzania after Years of Regulatory Tension

Uber has stopped operating in Tanzania, ending ride-hailing services in the country as of January 30, 2026. The move follows a prolonged standoff with regulators over how app-based transport platforms should be governed.

Riders were notified through a brief in-app message that Uber’s services would no longer be available in multiple cities. The notice expressed regret for the disruption and thanked Tanzanians for using the platform over the years.

Uber’s departure affects service availability in Dar es Salaam, Dodoma, Arusha, Mwanza, and Zanzibar.

Why Uber says Tanzania became unworkable

The exit comes after ongoing disagreements with Tanzania’s Land Transport Regulatory Authority (LATRA). At the centre of the dispute is LATRA’s approach to treating ride-hailing platforms similarly to traditional taxi services particularly through controls over pricing and platform earnings while Uber typically operates as a more flexible, algorithm-driven marketplace.

According to the report, several regulatory requirements made the market difficult for Uber to sustain:

• Commission limits: LATRA enforced a 15% cap on the commission platforms could collect from drivers. Uber’s standard global commission is cited as 25%.
• Fixed or guided pricing: Regulators set guide fares and minimum prices per kilometre and minute, limiting Uber’s ability to use dynamic pricing to match demand with driver supply.
• Reduced operational flexibility: With constraints on commissions and pricing, Uber said it could not run the kinds of sign-up bonuses and promotional discounts it often uses to drive growth.

This is not the first time Uber has paused or pulled service in Tanzania. The company previously halted operations in April 2022, citing similar challenges, before returning in early 2023 when commission rates rose to 25%. The return to more restrictive oversight in 2026 ultimately led to what has been described as a permanent exit.

Uber’s exit also follows its withdrawal from Côte d’Ivoire in 2025, where it faced a different set of pressures, including driver frustrations alongside regulatory demands.

For drivers and the broader market, the outcome is mixed. A 15% commission cap can allow drivers to keep a larger share of each fare, an issue that has fuelled strikes and protests in various African markets as drivers push back against low pay, rising fuel costs, and platform fees. But Uber’s departure removes a major global platform from the ecosystem, potentially reshaping demand and income opportunities tied to its scale.

Local and regional ride-hailing companies, including Little, may be positioned to capture more of the market as they adapt to LATRA’s framework.