US-based ride-hailing company, Uber, on Thursday suspended its operation in Tanzania after being in the country for six years.
Announcing the decision through a statement sent to customers nationwide, Uber said it has suspended operations until an agreement is reached with Tanzanian authorities.
“Current regulations in the transportation sector have created an environment that is not friendly and has been a challenge in our business,” the firm said.
It, however, did not state the exact conditions that make the business environment unfriendly.
“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 [an] agreement that will create a stable environment for our business,” the statement says.
“We would like to take this opportunity to thank you sincerely - for choosing our app to make your trips within Dar es Salaam where we have been providing our services for the past six years.”
The Uber application is already operating in 80 countries of the world – 11 of them in Africa.
Uber has been providing transportation services in Tanzania through UberX, UberX Saver and UberXL services.