Uber Halts Operations in Nigeria and Uganda With Immediate Effect

Global ride-hailing company Uber has announced the immediate closure of its operations in Nigeria and Uganda following a comprehensive review of its business. The decision marks the tech firm's latest withdrawal from the African market, having previously pulled out of Ivory Coast and Tanzania over the past year.

With these exits, Uber's presence on the continent is now limited to four countries: Egypt, Ghana, Kenya, and South Africa. The company stated that the decision applies strictly to Nigeria and Uganda and does not affect its remaining markets across the continent, where it claims to see continued growth and opportunity.

Economic Challenges and Local Pressure

Uber first launched in Nigeria in 2014 and expanded into Uganda two years later. Over its 12 years in Nigeria, the company expanded its offerings, including the introduction of a boat service in Lagos in 2019 to help commuters navigate the city's heavy traffic gridlock.

However, the Nigerian market presented growing difficulties for the platform. Local drivers frequently complained that low trip fares and high commission rates made operations unsustainable, particularly alongside rising fuel prices. Operating costs in Nigeria surged following the removal of fuel subsidies under President Bola Tinubu in 2023, while recent geopolitical tensions between the US and Iran further drove up petrol prices. Drivers in the country had staged protests and industrial actions over working conditions, while international rivals like Bolt and inDrive, along with local apps, increased market competition.

Impact on Commuters and Global Restructuring

In Uganda's capital, Kampala, the departure is expected to shift the public transportation landscape, with alternative platforms such as Bolt, Faras, and SafeBoda positioned to fill the market void.

The shutdown coincides with broader global changes at the company. Chief Executive Dara Khosrowshahi announced that Uber is reducing its global workforce by 10%, affecting over 3,000 jobs. Uber pledged support for affected staff and drivers in Nigeria and Uganda, confirming that its help centre will remain accessible to resolve outstanding issues until September 23.