Within Bossaso, tuk-tuks (bajaj) and shared taxis are the main local transport. These are inexpensive and go to most parts of the city. Agree on the fare before getting in.
For trips out of town — to the beach, toward the mountains, or along the coast — hire a vehicle with a driver. This is strongly recommended over renting independently. Local drivers know the road conditions and can provide security context. Hotels and guesthouses can arrange this.
The city is not large and parts of the centre are walkable during daylight hours. Avoid walking alone at night. Maintain a low profile and be aware of your surroundings at all times. The security situation can change; check with your hotel or with organisations operating locally before moving around.