Tanzania Forces Ride-hailing Services to Change Course

Bolt, the famous ride-hailing company, has been forced to change its business model following a regulatory policy from the Tanzanian government. The regulatory feud, which started earlier in March, is premised on Tanzania’s Land Transport Regulatory Authority (LATRA) mandates for ride-hailing operators to collect a maximum of 15 per cent commission from their drivers. The company, sensing the impact on its business, disputed the fee. Although the company went on to engage with relevant stakeholders hoping to reach favourable tariff and commission regulations, the introduction of its new business model signifies the engagement was futile.  The Estonian ride-hailing company maintains that a 15 per cent commission in contrast to its previous 20 per cent charge is not sustainable for its operations in the country, hence the need for a change in the operational model. So rather than closing its operations in the country, Bolt has switched to corporate client servicing. Per a Techtrend report, the company stated that “Bolt has no choice but to mitigate against the losses in the market until it sees a considerable improvement in the regulatory ecosystem.”

SOURCE: VENTURES AFRICA

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