FORTUNE+ VIDEO SPONSORED CONTENTS ADVERTORIALS FORTUNE AUDIO Fortune Careers TRADE AFRICA Election 2026 New TIME REMAINING UNTIL ETHIOPIA’S NATIONAL ELECTION 0Days 0Hours 0Minutes 0Seconds



IN A NUTSHELL

  • Ride-hailing drivers in Addis Abeba face fines for stopping in busy areas, with no legal alternatives provided.
  • Only 10 to 15 ride-hailing companies remain visibly active in the city, a sharp decline from 44 registered firms the previous year.
  • The majority of app-based drivers are in the capital, but city policies offer them no dedicated infrastructure.
  • Drivers are often penalised for simply gathering in groups, with enforcement treating informal stops as unauthorised terminals.
  • New regulations are being drafted, but for now, drivers continue to operate in a system marked by ambiguity and risk.

Ride-hailing drivers in Addis Abeba are increasingly finding themselves on the wrong side of the city’s rapid urban transformation, caught between aggressive corridor development and a regulatory absence that has yet to accommodate app-based mobility.

Drivers operating through platforms such as Feres Transport and Ride face mounting obstacles due to the absence of designated pickup and drop-off areas. City policy bars them from public bus terminals, main roads, and any location where vehicles might congregate, while offering no alternative spaces. The result is a system that exposes drivers to frequent penalties and deep operational uncertainty.

Brief stops in busy neighbourhoods such as Teklehaymanot, Mercato, Megenagna, Betel, Ayer Tena, and Bole Brass can trigger fines of up to 4,000 Br, a burden for many drivers. Without legal stopping zones, violations accumulate quickly. Enforcement has intensified alongside corridor expansion projects, pushing drivers to adopt evasive tactics, lining up discreetly or stopping momentarily wherever possible, often leading to further fines.

Authorities argue these practices disrupt traffic flow and amount to the creation of unauthorised terminals. The city’s current transport policy prioritises mass transit, leaving little room for individual or small-scale operators such as metro taxis.

Last week, the Addis Abeba Traffic Management Authority (AATMA), in coordination with the traffic police, ticketed drivers accused of forming informal gathering points. Officials maintain that these drivers violated traffic rules, even when vehicles were not visibly obstructing traffic. In practice, drivers can be penalised simply for stopping to pick up or drop off passengers.

According to Abera Bayisa, head of traffic enforcement at the Addis Abeba Traffic Police, some drivers have begun lining up at specific locations, mimicking traditional taxi ranks.

“They want to establish their own terminals,” he said. “No one has the right to set up a terminal without government approval.”

Traffic police have been instructed to remove taxis parked outside designated areas, with fines used as a deterrent. According to Abera, enforcement would continue until the city identifies a workable solution. The Traffic Management Authority holds a similar position.


According to Amare Tarekegn, the Traffic Management Authority deputy general manager, the city classifies ride-hailing drivers as private vehicles rather than part of the public transport system.

“We see them as private cars,” he said. “We don’t give them special privileges.”

The ride-hailing ecosystem in Addis Abeba is dense, fast-moving, and opaque. Despite its growth and urban entrenchment, data on the number of drivers or vehicles operating under each platform remains elusive. The number of registered ride-hailing companies reached 44 last year. However, high attrition has since narrowed the active field, with only about 25pc, approximately 10 to 15 companies, maintaining a visible presence on the roads of the capital, where 99pc of the country's ride-hailing traffic is confined.

Firms such as Feres, Ride, Zay Ride, Yango, Little Ethiopia, Seregela, Adika, One Ride, and VIP Taxi form the operational core, while others, such as Easy Ride and ETTA, have limited reach.

Recent reports peg the total number of ride-hailing drivers or vehicles in Addis Abeba between 100,000 and 135,000. Feres claims to have a driver network exceeding 60,000, while Ride, once the undisputed leader, was reported to operate 6,000 vehicles and to have onboarded 42,000 drivers since its founding, a cumulative metric likely inclusive of inactive accounts.

Little Ethiopia’s profile has grown steadily, with a 2025 report putting its registered driver count at 43,000, up from previous estimates of 20,000. Yango, despite its global prominence, provides no Ethiopia-specific data. Smaller platforms remain largely silent on operational scale.


Under the city's current policy, no infrastructure, such as parking spaces or terminals, is allocated to these cars, and access to public transport facilities is restricted. Drivers are left with few legal options for stopping, picking up, or dropping off passengers. While mass transport receives investment and regulatory clarity, app-based services remain sidelined, expected to operate within tight constraints until new permits or regulations are issued.

Drivers who stop in non-designated areas face fines, while those who wait in groups are treated as though they are establishing terminals. Amare disclosed that the Authority is mapping congestion hotspots and designating them as “no-parking” zones, with limited, time-bound permissions occasionally granted in less-congested areas based on traffic flow assessments.


“We’ll assess traffic flow and determine specific times when they can provide services,” he told Fortune.

For many drivers, however, the system remains unworkable.

Daniel Shiferaw, a BYD electric taxi driver who paid 21,000 Br in taxes last year, has been fined more than a dozen times in the past 10 months, accumulating penalties exceeding 13,000 Br, mostly for stopping to pick up or drop off passengers. Last week alone, he was fined 4,000 Br for what officers described as “setting up a terminal and picking up passengers.” After receiving a ticket at one location, he moved elsewhere, only to be fined again in Bole Brass.

While Daniel says he understands the need for enforcement, the lack of designated stopping areas leaves drivers with little choice.

“When officers see us parked anywhere, they find us immediately,” he told Fortune. “If they see more than three cars, they consider it a terminal.”

His experience is widely shared. Many ride-hailing drivers say they are forced to operate in a legal grey zone created not by misconduct, but by the absence of viable alternatives.

The regulatory vacuum extends beyond enforcement. Officials at the Addis Abeba Transport Bureau acknowledged that ride-hailing cars have long operated without clear rules, designated terminals, or effective oversight. In the past, permits were issued primarily to technology companies rather than service operators, with little accompanying supervision or infrastructure support.

That may soon change. The Bureau is drafting a new regulation to govern its operations, covering terminal use, mandatory GPS installation, vehicle identification requirements, and infrastructure provisions. The draft is currently under review by the City Justice Bureau and is expected to reach the Mayor’s office in the coming weeks.


Belete Ejigu (PhD), a lecturer in emerging metro systems at the Civil Service University, believes the challenges are not unique to Ethiopia.

“The country is adopting the system, but without a feasible mechanism to ensure compliance with laws and regulations,” he said.

According to Belete, the absence of infrastructure pushes drivers to cluster and cancel app-based calls in favour of direct pickups, behaviour driven by policy gaps rather than deliberate rule-breaking.

“If they break the law, they should be fined,” he said, “but through proper regulation and by providing infrastructure.”

He argued that better integration and inter-agency coordination are needed, noting that reserved parking areas could be created without impeding traffic. He also acknowledged shortcomings on both sides, including illegal stopping by drivers and inconsistent enforcement by officers.

Operational challenges are compounded by how ride-hailing apps function. Passengers often call multiple cars simultaneously and select the most convenient one, leaving others stranded and increasing the likelihood of clustering in prohibited areas. Weak policy oversight also enables app misuse, further complicating traffic management. Belete believes targeted government support could help restructure app usage and improve compliance.

Addis Ababa’s ride-hailing industry is large, contested, and structurally important, yet frustratingly under-documented. The ecosystem revolves around a handful of major players, mainly Feres and Ride, with the total number of active drivers across all platforms likely exceeding 100,000. However, without regulatory disclosure, these figures remain indicative rather than authoritative.

Transport Bureau officials concede that ride-hailing cars could become an integral part of Addis Abeba’s transport ecosystem, especially as traditional taxi services decline. They view app-based taxis as a marker of urban development, provided regulatory and infrastructure gaps are addressed. Without clear rules, however, the sector remains in limbo.



PUBLISHED ON Jan 04,2026 [ VOL 26 , NO 1340]


[ratemypost]



[ssba-buttons]

Put your comments here

N.B: A submit button will appear once you fill out all the required fields.


Editors' Pick



Editorial