Uber is set to end its ride-hailing operations in Nigeria and Uganda following a review of its business activities in both countries.
The global ride-hailing company described the move as a “difficult decision”, bringing an end to its operations in Nigeria after 12 years and in Uganda after about a decade.
Uber launched its Nigerian operations in 2014 and expanded to Uganda in 2016. Over the years, the company became a major player in the ride-hailing industry, particularly in Lagos, Nigeria’s commercial hub.
Rising Costs Put Pressure on Uber’s Nigerian Operations
Uber drivers in Nigeria have repeatedly raised concerns about the low fares available on the platform and the high cost of fuel and vehicle maintenance. Drivers have also complained about commission charges and working conditions.
The Nigerian ride-hailing market has become increasingly competitive, with platforms such as Bolt and inDrive, alongside several local operators, competing for drivers and passengers. The removal of Nigeria’s fuel subsidy following President Bola Tinubu’s election in 2023 also contributed to rising living and transportation costs, making it more expensive for motorists to operate.
Uber Had Expanded Beyond Ride-Hailing in Lagos
During its time in Nigeria, Uber introduced additional services to meet the needs of commuters. In 2019, the company launched a boat service in Lagos, giving residents another option for navigating the city's notorious traffic congestion. Lagos is one of Africa's busiest cities and is well known for lengthy traffic jams that can affect commuters and business activities.
Uber Reduces Its African Footprint
Uber's departure from Nigeria and Uganda follows its withdrawal from Ivory Coast and Tanzania over the past year. Following the latest exits, Uber will continue operating in Egypt, Ghana, Kenya and South Africa, according to the report.
Uber said the decision applies only to Nigeria and Uganda and does not affect its operations elsewhere in Africa. The company also said it remains committed to sub-Saharan Africa, where it sees continued growth and opportunities.
What Happens to Uber Drivers and Customers?
Uber said it would provide support to employees and drivers affected by the decision. Its help centre will remain available to users in Nigeria and Uganda until 23 September to address outstanding issues.
In Uganda, the departure is expected to create opportunities for competing ride-hailing platforms, including Faras, Bolt and SafeBoda, to expand their presence in Kampala and other areas.
Uber Announces Global Job Cuts
The announcement comes as Uber CEO Dara Khosrowshahi revealed plans to reduce the company's global workforce by 10% as part of a major restructuring. The developments mark a significant change for Uber, which has spent years building its presence across African markets.
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Uber Exits Nigeria and Uganda: Why the Ride-Hailing Giant Is Leaving
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Uber is leaving Nigeria and Uganda after reviewing its business operations. Rising fuel costs, low fares and increasing competition have created challenges for ride-hailing companies.
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