HomeMust ReadExperts: Ride-hailing ecosystem reshaping urban economy

Experts: Ride-hailing ecosystem reshaping urban economy

HE ecosystem created by ride-hailing services has stimulated demand in related sectors such as fuel, spare parts, vehicle maintenance, and digital payment systems, thereby supporting wider economic activity beyond transport services.

This expanding digital transport economy is increasingly being viewed as one of the key drivers of urban informal employment and micro-enterprise growth in Tanzania, as thousands of drivers and associated service providers plug into platform-based mobility systems to earn a living.

Speaking during panel discussion at Mobility Dialogue 2026, part of the Mwananchi Thought Leadership Forum themed “Sustainability, Trust & Growth in Africa”,  in Dar es Salaam on May 28, 2026, Bolt East Africa Managing Director Demetrius Kanyankole said the platform has evolved beyond ride-hailing into a wider economic network supporting multiple industries linked to transport services.

He said the growth of the platform has led to increased consumption of fuel, accelerated turnover of vehicle spare parts, and rising demand for repair and maintenance services, particularly in urban centres where ride-hailing activity is highest.

“Since the firm entered Tanzania in 2017, we have seen a significant expansion not only in driver participation but also in the supporting ecosystem that keeps vehicles on the road,” he said.

According to Kanyankole, more than 30,000 drivers across eight cities are currently registered on the platform, using it as a primary source of income and livelihood support.

He added that high-performing drivers are able to generate substantial monthly earnings, with some reportedly earning above Sh1 million depending on vehicle type, hours worked and operational efficiency.

Beyond driver income, he noted that the platform contributes to government revenue through taxes and regulatory fees, with more than 1bn/- collected in various statutory payments.

Sahara Ventures Chief Executive Officer Jumanne Mtambalike said digital transformation goes beyond mobile applications and software, focusing instead on the practical integration of technology into core economic systems to generate value.

He said the future of the digital economy extends beyond ride-hailing, envisioning a system where boda boda riders and other informal workers are fully integrated into financial and social systems. This would enable them to access insurance, earn digitally, trade, pay taxes, contribute to social security and save, ultimately transitioning from a gig economy to a fully connected platform economy.

Mtambalike noted that this shift is already visible in cities such as Nairobi, where similar models are taking shape.

He further emphasised that regulators should evolve from being purely policymakers to ecosystem facilitators, supporting innovation rather than restricting it. He warned that premature regulation risks stifling growth in emerging digital sectors.

The integration of digital payment systems has improved transaction transparency while also increasing financial inclusion for drivers who previously relied heavily on cash-based income systems.

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