Uber exits Tanzania after a decade of operations under regulatory pressure
On 30 January 2026, Uber officially shut down its services in Tanzania. Active since 2016, the platform operated mainly in Dar es Salaam, Arusha, Mwanza, Dodoma and Zanzibar. The move marks the US group’s definitive exit from Tanzania’s ride-hailing market, following years of regulatory friction and deteriorating profitability.
An economic model that became unsustainable
At the core of the issue: the framework imposed by the Land Transport Regulatory Authority (LATRA).
Since 2022, the regulator has enforced:
- minimum fares per kilometre and per minute,
- mandatory pricing grids,
- caps on commissions charged by platforms.
These measures significantly reduced Uber’s pricing flexibility — a central pillar of its model, built on dynamic matching of supply and demand.
After an initial suspension of services in April 2022, Uber attempted a partial comeback in 2023. But with no room to adjust pricing or cost structures, the operation never regained a sustainable financial balance. In early 2026, management made the call: a full market exit.
Immediate operational impact in major cities
On the ground, effects were swift.
In Dar es Salaam, the country’s largest urban area, Uber’s departure mechanically reduces available VTC capacity, particularly during peak hours and in peripheral districts underserved by public transport.
More than 1,500 drivers previously affiliated with the platform must now reposition themselves — either towards remaining competitors or back into informal transport. For users, this already translates into:
- fewer app-based options,
- potentially longer waiting times,
- weaker competitive pressure on fares.
In an urban context marked by chronic congestion and rapid population growth, this contraction of digital mobility supply directly affects daily commute fluidity.
Bolt, inDrive and Little absorb displaced demand
Uber’s exit primarily benefits Bolt, inDrive and Little, which continue operating in Tanzania with business models better aligned with local constraints — notably through lighter cost structures and greater tolerance for thinner margins.
For these players, the challenge now is to absorb transferred demand quickly without degrading service quality, while remaining compliant with regulatory requirements.
A case study for East Africa
At regional level, Tanzania stands out for its more interventionist regulatory stance compared with Kenya or Uganda, where platforms still enjoy relatively greater pricing freedom.
This gap partly explains continued investment flows into neighbouring capitals, while Dar es Salaam closes the Uber chapter. For mobility operators and specialised funds, the message is clear: regulatory arbitrage is becoming a central factor in capital allocation across East Africa.
Uber’s withdrawal from Tanzania is reshaping the local urban mobility landscape. In the short term, impacts are visible in reduced capacity, mounting pressure on drivers and weaker competition. Over the medium term, the episode raises a strategic question: how to scale viable digital transport solutions in tightly regulated environments without stifling innovation or access to service.
