US ride-hailing giant Uber has suspended its services in Tanzania, saying government legislation that raises fares and cuts its commission made it difficult for it to operate.
Uber
said it made the "difficult decision to pause operations" in the East
African country from Thursday.
"The
pricing order proposed by the Land Transport Regulatory Authority (LATRA) makes
it challenging for platforms like Uber to continue to operate," Uber said
in a statement on Thursday.
Under
the new regulations which come into effect this month, fares doubled to 900
Tanzanian shillings per kilometre.
Meanwhile,
maximum commission for the ride-hailing companies was set at 15 percent from
the previous 33 percent.
The transport regulator said the changes were aimed at
maintaining competition and ensuring affordable taxis.
It defended the rules late Thursday, saying all providers
save for Uber had conformed to the new regulations.
"We remind all the ride-hailing companies to abide by
the rules and regulations of doing business in order to boost the
economy," LATRA director general Gilliard Ngewe said in a statement.
Uber — founded in 2009 — arrived in Tanzania in 2016 and has
capitalised in the country's low levels of personal car ownership and a lack of
efficient mass transport system.
The San Francisco-based company said it remained committed
to resuming operations in the long-term if the pricing tussle was resolved.
"We remain available to work with regulators on building a framework for technology to thrive, so that we can re-launch and provide a service loved by so many."
0 comments:
Post a Comment