The Tanzanian report suggests Bolt, the popular quick-ride company, may be pulling out of the east-African country. The uncertainty surrounding Bolt’s operations in Tanzania with respect to the recent 15% service charge order. Bolt and Uber are the two major ride-hailing companies in the country and this fee affects them. According to Bold, it is already in touch with relevant stakeholders. Bolt East Africa regional manager Kenneth Micah said
Bolt requests a meeting with relevant stakeholders to discuss this particular matter further, with the hope of reaching favorable tariff and commission regulations, even though we are considering the alternative lobbying provided within the legal framework, including the Latra regulatory framework. Let’s continue to explore and explore alternatives.”
Latra is the land transport regulatory authority that regulates taxi services in Tanzania. The authority is in charge of setting the fares and reviewing the already existing fares. According to Bolt, if the situation continues like this, then he will have to close his car business. If Bolt switches its car category, there will be smaller players like Little and Ping in the market. Currently, Little charges 15% while Bolt and Uber charge 20% and 25% respectively.
Micah continues
While we acknowledge and appreciate Latras mandate, we strongly believe that the introduction of deregulation duties in a well-functioning and competitive ride-hailing sector is detrimental to a free market economy. Again Also, Bolt will implement the directive under pressure and for the interim period, said Micah.
We are temporarily complying to demonstrate goodwill and our commitment to engage with Latra for more favorable regulations that enable further investments. We are aware of the fact that Latra should maintain the status quo. The market will ultimately no longer be viable for the Bolt, and this will require the closure of our car range.”
Uber temporarily suspends its operations in Tanzania
Although Bolt is still trying to make a decision, Uber only suspended its operations in the country last week. However, the company claims that it will resume operations once favorable changes take place.
According to Bolt, more than 10,000 drivers will have to look for new jobs when they stop their service. Bolt operates in seven markets in Africa including Nigeria, Kenya, South Africa, Uganda and Ghana.
Just last month, Latra made a review of rates for ride companies. Again made some adjustments to the maximum distance (per kilometer) rate and commission. Latra wants all car ride companies to reduce their “dead kilometer”. It is meant to reduce the distance that the driver will travel before picking up a passenger. The agency also wants a platform where drivers can be “heard” when passengers have complaints. Due to rising fuel costs, the agency doubles the rate per kilometer for ride-hailing companies.
