Bolt has limited their business activity in Tanzania to just working with corporate clients after Tanzania implemented strict land laws that have abruptly halted many companies’ operations in the country including Uber.
Earlier this year, Tanzania’s Land Transport Regulatory Authority (LATRA) mandated ride-hailing operators to collect a maximum of 15 per cent which the companies say is not sustainable for their operations.
The same month the mandate was made, Uber exited the market stating that the regulations are unfavourable and it would only return if the regulatory issues were sorted. Uber was charging its drivers a 25 per cent commission while Bolt a 20 per cent commission. Bolt adjusted its commission but restructered to offer to coperate clients only.
Tanzania is not only the country that imposed regulations to the ride-hailing industry, In July, Kenya also impossed a law where drivers were required to pay a maximum of 18 per cent commision. A move the state says will protect drivers from exorbitant charges. Drivers had previosly held several strikes and boycotts in protest of the high fees that the campanies never put into consideration.
Another revelation into the Tanzania exit could not be LATRA’s complex rules be the country’s week currency that makes it difficult for them to operate on the set terms which could also result in revenue decrease if they adopt it.
Techcabal says, These business decisions by the two major ride hailing companies illustrate the long-standing narrative that regulations in Africa challenge technology businesses and innovative startups on the continent