Uber has announced the immediate cessation of its ride-hailing services in Nigeria, Africa's most populous country, and Uganda. This decision was made after a comprehensive review of its business operations in these regions. Uber had been active in Nigeria since 2014 and in Uganda since 2016.
Drivers in Nigeria have consistently expressed dissatisfaction with low app prices and high commission charges, especially in light of increasing fuel costs. The market has also seen intensified competition from other ride-hailing services like Bolt and inDrive, as well as local operators. The removal of Nigeria's fuel subsidy in 2023 and subsequent petrol price increases further strained operating conditions for drivers.
In Uganda, Uber's departure is expected to significantly alter commuting in Kampala, though other apps like Faras, Bolt, and SafeBoda are likely to fill the service gap.
This move aligns with Uber's recent global workforce reduction of 10% and follows previous exits from Ivory Coast and Tanzania. With these latest closures, Uber's presence in Africa is now limited to Egypt, Ghana, Kenya, and South Africa. The company stated that this decision is specific to Nigeria and Uganda and does not affect its remaining operations on the continent, where it claims to see continued growth and opportunity.
In Lagos, Nigeria, Uber had expanded its offerings to include a boat service in 2019 to help commuters navigate the city's severe traffic congestion. The withdrawal means the cessation of these services, impacting both drivers and commuters who relied on the platform.
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Uber has immediately ceased its ride-hailing operations in Nigeria and Uganda after a business review. This decision follows driver complaints about low prices and high commissions, increased operating costs, and competition from rival platforms in these markets.