Dar es Salaam – Uber, the global ride-hailing behemoth, has officially ended its services in Tanzania as of January 30, 2026, after nearly a decade of operations in the East African country.
The company’s departure, announced in a brief message to its customers, comes after a protracted struggle with a stringent regulatory framework and intense competition from its main rival, Bolt.
While Uber did not provide a detailed explanation for its exit, industry analysts and previous company statements point towards a challenging business environment created by the Land Transport Regulatory Authority (LATRA).
The government body has been assertive in its oversight of the ride-hailing sector, imposing fare caps and commission limits that have squeezed profit margins for operators. This regulatory pressure had previously led Uber to suspend its services in Tanzania from April 2022 to January 2023, a time where its competitor, Bolt, used to gain market ground, including launching motorcycle and tricycle rides.
The regulatory landscape in Tanzania for ride-hailing services is notably more interventionist compared to its East African neighbours. In March 2022, LATRA introduced an order that capped the commission for ride-hailing companies at 15 per cent, a significant reduction from Uber’s previous 25 per cent commission.
READ MORE: What’s Next for Bolt, Uber After Regulatory Struggles in Tanzania?
Although this was later revised to 25 per cent in December 2022, the initial move signalled a volatile regulatory environment.
In contrast, Kenya’s National Transport and Safety Authority (NTSA) and the regulatory bodies in Uganda have adopted a more flexible approach, allowing market forces to play a greater role in determining fares and commissions.
Compounding Uber’s regulatory woes was the formidable presence of its competitor, Bolt. The Estonian-based company, which entered the Tanzanian market in 2017, has successfully captured the lion’s share of the market.
With over 30,000 drivers across eight cities and a business model that has been more adaptive to local market conditions, Bolt has become the dominant player.
Reports indicate that Tanzania has become Africa’s fastest-growing ride-hailing market, with Bolt experiencing a 68 per cent year-on-year increase in rides in 2025. This growth has been attributed to Bolt’s smarter pricing strategies and better alignment with the needs of both drivers and passengers in a price-sensitive market.
READ MORE: Bolt Drivers in Tanzania Protest Over High Charges
Uber, on the other hand, struggled to adapt. The company’s rigid pricing structure and unpopular policies, such as a Sh3,000 (approximately US$1.20) ride cancellation fee, were not well-received by Tanzanian consumers.
At the time of its exit, Uber had an estimated 1,500 drivers, a stark contrast to Bolt’s expansive network. Other players in the market include In-Drive and Farasi, but none have managed to challenge Bolt’s dominance.
There have been no recent public remarks from Uber Tanzania executives that could shed more light on the decision to leave. The company’s final communication was a terse message to its users, stating that “this chapter comes to an end.”
This silence is a departure from the company’s stance in 2022, when it explicitly stated it would only return if the “regulation is addressed.”
Some observers think that the departure of a major international player like Uber raises questions about the future of the ride-hailing sector in Tanzania and the broader implications for foreign tech companies looking to invest in the country.
While the government maintains that its regulations are aimed at protecting consumers and ensuring fair competition, some believe that the exit of a key investor suggests that a delicate balance must be struck to foster a thriving and competitive digital economy.
