Uber shuts down operations in Nigeria, Uganda
Uber has announced the immediate closure of its operations in Nigeria and Uganda, marking its exit from two African markets.
The global ride-hailing company said it reached the “difficult decision” following a comprehensive review of its business operations. Uber launched its services in Nigeria in 2014 and expanded into Uganda in 2016.
The company has faced growing challenges in Nigeria, where drivers have repeatedly complained about low fares on the platform amid rising fuel and operating costs. They have also raised concerns about Uber’s commission rates, while the company has had to compete with a growing number of rival ride-hailing platforms.
The announcement coincides with news that Uber CEO Dara Khosrowshahi plans to reduce the company’s global workforce by 10%.
Over the past year, Uber has also withdrawn from Ivory Coast and Tanzania. Its latest exits leave Egypt, Ghana, Kenya and South Africa as the only African countries where the company currently operates.
Uber stressed that the decision affects only Nigeria and Uganda and would not impact its operations elsewhere on the continent.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” the company said in a statement.
Uber added that it remains committed to sub-Saharan Africa, where it continues to see significant growth potential and business opportunities.
During its 12 years in Nigeria, Uber expanded beyond traditional ride-hailing services. In 2019, it introduced a boat service in Lagos, allowing commuters to avoid the city’s notorious traffic congestion.
Lagos, one of Africa’s most populous and busiest cities, is known for severe traffic jams that frequently disrupt movement and economic activity.
The Nigerian ride-hailing sector has also become increasingly competitive, with platforms such as Bolt and inDrive entering the market alongside several local operators.
However, the industry has faced widespread difficulties as drivers have staged protests and work stoppages over low fares, rising operating expenses and concerns about working conditions.
The removal of Nigeria’s long-standing fuel subsidy following President Bola Tinubu’s election in 2023 contributed to a sharp increase in living costs, including the price of petroleum products. Motorists have faced further pressure this year as petrol prices rose again following the US conflict with Iran.
In Uganda, the Daily Monitor reported that Uber’s exit would significantly affect commuters in Kampala, although other ride-hailing platforms, including Faras, Bolt and SafeBoda, are expected to fill the gap.
Uber said it would provide support to employees and drivers affected by the withdrawal. Its help centres in Nigeria and Uganda will also remain available until September 23 to assist with outstanding matters.
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