Uber and Tigo Tanzania have signed a one-year partnership to roll out a series of cash back initiatives for drivers and riders who use the Uber app.

The partnership would see drivers on the Uber platform have the option of being registered by Tigo Pesa as Lipa 'Kwa Simu' merchants to collect funds.

Drivers will be able to cash out from their Lipa Kwa Simu merchant accounts with zero charges through diverse Tigo Pesa agents for any amount below 500,000/- per day.

Riders who pay for their trips using Tigo Pesa Lipa Kwa Simu will receive 10 per cent cashback in their Tigo Pesa wallets, in addition to other periodic promotions that Uber may run through the App.

Uber's Head of East Africa, Imran Manji said riders will be able to save on costs and drivers will have the opportunity to increase their earnings.

"In addition, this is an important collaboration as it provides a seamless and convenient payment avenue on our platform," he said.

Tigo Pesa's Chief Officer, Angelica Pesha said Uber drivers will now have an efficient payment collection solution that will ensure that their customers have a safe and secure method to pay for their journey from one place to another.