A Dissertation Submitted to Mzumbe University in Fulfillment of the
Requirements for the Award of Degree of Masters of Business Administration
Corporate Management (MBA-CM) of Mzumbe University Dar es Salaam
Campus College
The global upsurge of ride-hailing market is a recently emerging sharing economy
phenomenon. This study has explored performance and economic effects of ride
hailing taxi services in Tanzania using Uber Tanzania Limited as a case study. The
study was based on Dares Salaam taxi industry and it was conducted with three
specific objectives. A convenience sampling procedure was used to get a quantitative
sample of 258 respondents comprised of 102 Uber taxi drivers, 20 local taxi drivers
and 136 riders used to carry out the study. Data were analyzed through SPSS using
cross tabulation, lognormal distribution, correlation, and multiple regression analysis
techniques.
The results of the study indicate increased demands of Uber taxi service which had a
negative effect on prices charged by traditional taxi drivers. Such effect had
negatively affected local taxi driver’s income earning level. The results indicate that
on average Uber driver can earn adequate revenue from driving per month.The
company has contributed significant domestic tax revenue toDar es Salaam tax region
over three years.
The study results reveal high satisfaction from both Uber drivers and riders and high
utility of Uber taxi services. It was found that driving satisfaction trigger 58.09% of
driver’s intention to continue working with uber.
Conclusively, the emerging of new innovative and powerful online business model
like Uber presents high possibility and wider scopes in economies of scales ranging
from production to consumption of good and services in the market value chain.
Among key other things the study recommend that Uber Tanzania limited should
improve its locational services network coverage and consider services extension to
areas where service is not available in the study area and to other regions of Tanzania.