Taxi-hailing service Uber has suspended its operations in Tanzania six years after launch. The company released a statement saying they were seeking an amicable resolution with the government in regards to regulations in the country. The ride-hailing app has halted all its services in the country effective today April 14.
“Current regulations on the transportation sector have created an environment that is not friendly and has been a challenge in our business,” Uber said in a statement sent via emails.
Uber offers various taxi-hailing options in Tanzania including UberX, UberX Saver and UberXL. The company clarified that the suspension is temporary and they are seeking to work with the government in coming up with friendly regulations to enable them make an impact in the sector.
“This is a difficult time for all of us, but this does not mean that it is the end of everything. We are ready to co-operate with the relevant authorities and reach agreement that will create stable environment for our business,” reads part of statement.
The Uber application has faced a number of teething problems in Africa with players citing a number of issues. In Kenya, Uber operators have often protested against low rates that favour the clients while hampering their profitability.
Uber launched in Tanzania around the same time they launched in Kenya. Since then, a number of competing ride-hailing apps have mushroomed in the Kenyan market. This include Bolt, In-driver, Little Cab and Hava among others.
Uber is currently operational in 80 countries around the world, 11 of which are in Africa.