Yango, the Russian ride-hailing service owned by Yandex, is facing mounting regulatory challenges across Africa, with its latest setback unfolding in Togo. The Togolese Ministry of Transport announced on October 17, 2024, the immediate suspension of Yango’s operations, citing security risks and non-compliance with administrative procedures.
In a statement, Togo’s Ministry of Road, Air, and Rail Transport accused Yango of operating without the necessary licenses and authorizations, labeling the company’s activities as illegal. The ministry highlighted the “significant security risks” posed by the absence of adequate controls over Yango’s services, stating that the suspension was necessary to ensure public safety and enforce compliance with local transport regulations.
“Yango’s operations are in violation of all required administrative procedures,” the statement read. “The irregularities present a considerable threat to our citizens, particularly from a security perspective, and must be addressed immediately.”
Yango, which connects drivers and passengers via a digital platform, entered the Togolese market in June 2024. However, its swift suspension just four months later reflects the increasing scrutiny that ride-hailing platforms are facing across Africa, where regulators are grappling with how to manage new forms of urban mobility that disrupt traditional taxi and transport services.
A Growing Pattern of Resistance
Togo’s decision to suspend Yango echoes similar regulatory challenges faced by the company across the continent. In Cameroon, Yango was suspended in early 2023 after transport unions raised concerns over unfair competition and alleged non-compliance with local regulations. The Cameroonian government had warned Yango in September 2022 that it needed to secure a license, register with the tax department, and open a local bank account. Despite these demands, Yango continued to operate, prompting the government to act.
Yango was also asked to open an office in Cameroon, declare its fares, and publish its terms of service. When the company failed to meet these requirements, the government issued a suspension order in February 2023. While Yango was granted a temporary license later in August that year, the regulatory battle underscores the increasing friction between digital platforms and local governments.
Similar resistance emerged in Morocco, where Yango was banned in Casablanca just three months after launching in April 2023. Authorities cited the company’s lack of proper permits and accused it of using unlicensed drivers, leading to the immediate suspension of its activities in the country’s largest city.
In several African countries, taxi unions have also joined in the clampdowns, protesting the rise of ride-hailing apps like Yango, Uber, Bolt, Heetch, and Yassir, claiming that these platforms disrupt the existing transport ecosystem by undercutting prices and operating with limited oversight. In Senegal, the “Dolel Transport” movement has voiced strong opposition to Yango, accusing it of promoting irregular transport services. Despite these concerns, Senegal’s Transport Minister El Malick Ndiaye has expressed his intention to legalize new transport models, a move that has further inflamed tensions between the government and traditional taxi operators.
The regulatory pressures are not unique to West Africa. In August 2024, Yango announced its withdrawal from Algeria, citing difficulties in navigating the country’s regulatory landscape. The company’s local director, Lamia Rouaz, said the decision to exit the Algerian market was “difficult but necessary,” as the company struggled to offer its services in a way that added value to the local market. Despite investing in driver training and partnering with local initiatives, Yango ultimately found it unsustainable to continue operations in Algeria.
Global Shifts Amid Local Clampdowns
The regulatory resistance Yango faces in Africa is part of a broader global challenge for the company, particularly in light of the geopolitical tensions following the Russia-Ukraine conflict. As international scrutiny of Russian firms intensifies, Yango has sought to distance itself from its origins by shifting its global operational headquarters to Dubai Internet City in 2023. This move, the company said, was intended to “create a center of excellence” for overseeing its operations in Africa, the Middle East, and other regions.
Yango’s relocation to Dubai marked a strategic pivot aimed at reinforcing its global footprint while steering clear of the sanctions and regulatory pressures tied to its Russian ownership. The new headquarters oversees not only Yango’s ride-hailing services but also Yango Delivery and Yango Tech, reflecting the company’s ambition to expand beyond mobility solutions.
Despite its efforts to reposition itself as a global player, Yango ’s challenges in Africa persist. The company continues to face pushback from local governments and regulators, many of whom are still grappling with how to manage the rapid influx of digital platforms that challenge traditional business models.
The platform, which operates in over 20 countries globally, including Senegal, Côte d’Ivoire, and Ghana, has also been lauded for its potential to offer affordable and accessible transportation solutions.
For Yango, the regulatory setbacks in Togo, Cameroon, Morocco, and Algeria raise questions about the company’s ability to scale its operations across Africa. While the ride-hailing platform has succeeded in entering new markets, the increasing regulatory resistance suggests that its long-term success on the continent will depend on its ability to navigate complex legal landscapes and address concerns about security, compliance, and fair competition.