From the bustling avenues of Dakar to the choked arteries of Lagos, a digital revolution in urban transport is facing a formidable opponent: the entrenched power of traditional taxi unions. While ride-hailing giants like Yango, Yassir, and Heetch have promised convenience and efficiency to African commuters, they are increasingly finding themselves in a head-on collision with organized taxi drivers who view their arrival as an existential threat. The latest battleground is Senegal, where taxi drivers are demanding a hefty 500 million CFA francs (roughly $866,000 USD) from these tech firms, accusing them of unfair competition and illegal operations.
The scene in a Dakar courtroom this week was emblematic of a continent grappling with the disruptive force of technology colliding with established interests. The Economic Interest Group (GIE) of urban taxi drivers, representing the traditional cabbies of Senegal, stood firm against the representatives of Yango, Yassir, and Heetch. Their grievance, as articulated by spokesperson Modou Seck, is stark: these platforms are operating outside the legal framework, flouting regulations that traditional taxis diligently adhere to, and consequently, siphoning away their livelihoods. “These companies are operating completely illegally and are not complying with any of the obligations imposed on urban transport operators,” Seck declared, echoing the sentiments of countless taxi drivers across the continent.
The demand for compensation, initially smaller, ballooned after Yassir’s representative admitted to facilitating over 2,000 rides daily in Senegal. For the taxi unions, this admission was not just a statistic but a tangible measure of their economic loss. Their legal argument is bolstered by a recent Senegalese decree in 2024 that aims to tighten regulations on the urban transport sector, specifically requiring vehicles operating under ride-hailing platforms to be officially registered as VTCs (vehicles with driver), a move intended to bring them under greater scrutiny. “Why would anyone want to kill an activity that supports thousands of families?” pleaded Ibrahima Mbengue, the taxi drivers’ lawyer, highlighting the human cost of this technological disruption.
However, the ride-hailing companies are not backing down. Their defense rests on the argument that they offer an innovative service that meets a growing demand for urban mobility, a demand that traditional taxis have often struggled to satisfy consistently and affordably. Their legal teams have requested the outright dismissal of the taxi drivers’ complaint, portraying their operations as a modern solution to transportation needs.
The Senegalese case is far from an isolated incident. Across Africa, ride-hailing platforms are facing a rising tide of resistance, often spearheaded by powerful taxi unions. Togo recently delivered a significant blow to Yango, the Russian-owned ride-hailing service, by suspending its operations entirely, citing security risks and a failure to comply with administrative procedures. The Togolese Ministry of Transport minced no words, accusing Yango of operating without necessary licenses and posing a “considerable threat” to public safety.
This suspension in Togo follows a pattern of regulatory challenges for Yango across the continent. Cameroon suspended the platform in early 2023 after taxi unions protested against unfair competition and alleged regulatory non-compliance. Similar issues led to a ban in Casablanca, Morocco, just three months after its launch, with authorities citing a lack of proper permits and the use of unlicensed drivers. Even in Algeria, Yango ultimately withdrew its services in August 2024, citing an inability to navigate the complex regulatory landscape.
The narrative isn’t limited to Yango. In Tunisia, the Estonian ride-hailing giant Bolt is currently embroiled in a major scandal, with its operations suspended amid serious allegations of money laundering, tax evasion, and operating without proper licenses. Millions in assets have been seized, and the company’s headquarters shuttered, a stark reminder of the potential pitfalls of rapid expansion in emerging markets without meticulous attention to local regulations.
The core of the conflict lies in the fundamental differences between the traditional taxi model and the ride-hailing platform. Traditional taxi unions often represent drivers who have invested significantly in licenses and vehicles, operating under a framework of regulations that govern fares, vehicle standards, and driver qualifications. Ride-hailing apps, on the other hand, often utilize a more flexible model with drivers using their own vehicles and fares determined by algorithms, leading to accusations of undercutting and unfair competition.
The “Dolel Transport” movement in Senegal is just one example of how taxi unions are mobilizing against these perceived threats. They argue that ride-hailing apps promote irregular transport services, undermining the established ecosystem. While some governments, like Senegal’s Transport Minister El Malick Ndiaye, have expressed a willingness to legalize new transport models, this has only further inflamed tensions with traditional operators who fear being rendered obsolete.
For ride-hailing companies, the allure of the African market is undeniable. With rapidly growing urban populations and often inadequate public transport systems, the potential for expansion is immense. Platforms like Yango, which operates in over 20 countries globally, including several in Africa, tout their ability to offer affordable and accessible transportation solutions. However, their ambition to scale across the continent is increasingly being hampered by the resistance they face.
The regulatory pushback in Africa is not unique to the continent. Globally, ride-hailing companies have faced scrutiny and legal battles as governments grapple with how to integrate these new technologies into existing transportation frameworks. However, in Africa, the power and organization of traditional taxi unions, coupled with governments often prioritizing the protection of local livelihoods, present a particularly formidable challenge.
The outcome of the legal battle in Senegal, expected in July 2025, could set a significant precedent for the digital transportation sector in the country and potentially across the region. It will force a reckoning: can ride-hailing companies operate in Africa on their own terms, or will they be compelled to adapt to the demands and regulations of local authorities and the powerful influence of taxi unions?
The future of urban mobility in Africa likely lies in finding a balance. Ride-hailing platforms offer undeniable benefits in terms of convenience and efficiency, but they must also operate within a legal and regulatory framework that addresses concerns about fair competition, safety, and the livelihoods of existing transport providers. As the standoff in Senegal demonstrates, the road to a seamless integration of technology and traditional transport in Africa is likely to be a bumpy one, with taxi unions proving to be a significant force in shaping the journey.