Rising operating costs, driver complaints, fierce competition and a broader global restructuring have combined to push Uber out of Nigeria and Uganda after years of operations in both countries.
Global ride-hailing giant Uber has announced the immediate closure of its operations in Nigeria, Africa’s most populous country, and Uganda, bringing an end to years of service in the two African markets.
Uber said it reached the “difficult decision” following a thorough review of its business, while stressing that the move was limited to the two countries and would not affect its operations elsewhere on the continent.
The company began operating in Nigeria in 2014 and expanded into Uganda two years later.
In Nigeria, Uber drivers have for years complained that fares on the platform were too low to keep pace with rising fuel and vehicle operating costs. Drivers have also criticised the commissions charged by ride-hailing companies and staged protests and industrial actions over working conditions.
The Nigerian market has become increasingly difficult for ride-hailing operators as the cost of running vehicles continues to rise, while commuters remain sensitive to higher fares.
Uber’s exit also comes amid intense competition from other platforms, including Bolt and inDrive, as well as several locally operated ride-hailing services.
Rising Costs Put Pressure On Ride-Hailing
The removal of Nigeria’s fuel subsidy following President Bola Tinubu’s election in 2023 triggered a sharp increase in the cost of living and raised operating expenses for motorists and commercial drivers.
Fuel prices have remained a major concern for drivers, who have repeatedly argued that existing fares do not adequately reflect the cost of petrol, vehicle maintenance and other expenses.
The pressures have affected the wider ride-hailing industry, with drivers across different platforms demanding better fares and improved working conditions.
Uber also faced additional pressure as the company undertook changes to its global business.
The announcement came as Uber Chief Executive Officer Dara Khosrowshahi disclosed that the company would cut its global workforce by 10 per cent.
Over the past year, Uber has also withdrawn from Ivory Coast and Tanzania, while its latest decision leaves Egypt, Ghana, Kenya and South Africa as the only African countries where the company continues to operate.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber said in a statement to the BBC.
The company added that it remained committed to sub-Saharan Africa, where it continued to see “strong growth and opportunity.”
Uber’s 12-Year Journey In Nigeria Ends
Uber’s departure marks the end of a 12-year presence in Nigeria, during which the company expanded beyond conventional car-hailing services.
In Lagos, the commercial hub and one of Africa’s busiest cities, Uber launched a boat service in 2019 to provide commuters with an alternative way of navigating the city’s notorious traffic congestion.
The service was part of efforts to help residents bypass the long road journeys that routinely cause delays and affect business activity across the metropolis.
Despite Uber’s expansion, competition in Nigeria’s ride-hailing market continued to grow, with Bolt, inDrive and local operators offering alternatives to commuters and drivers.
What Uber’s Exit Means For Commuters
In Uganda, Uber’s departure is expected to have a significant impact on commuters, particularly in the capital, Kampala.
The Daily Monitor reported that the gap left by Uber would likely be filled by other ride-hailing platforms, including Faras, Bolt and SafeBoda.
For Nigerian commuters, the immediate impact could similarly be shaped by the ability of competing platforms to absorb Uber’s drivers and customers.
Uber said it would support employees and drivers affected by the decision and keep its help centres open in Nigeria and Uganda until September 23 to address outstanding issues.
After more than a decade on Nigerian roads, the departure of Uber is a reminder of the growing economic pressure facing ride-hailing businesses — and the drivers and commuters who depend on them.
