Key facts
- Uber has ceased operations in Nigeria and Uganda effective immediately.
Uber is ceasing operations in Nigeria and Uganda, citing a review of its business. The ride-hailing giant previously withdrew from Ivory Coast and Tanzania, leaving operations in Egypt, Ghana, Kenya, and South Africa.
Uber's withdrawal from Nigeria and Uganda signals increasing market challenges and operational costs in key African economies, impacting local drivers and commuters while reshaping the competitive landscape for ride-hailing services on the continent.
Uber has announced the immediate cessation of its operations in Nigeria and Uganda, following a comprehensive business review. The decision marks a significant shift for the ride-hailing giant in Africa, as it previously exited Ivory Coast and Tanzania within the last year. The company stated that operations will continue in Egypt, Ghana, Kenya, and South Africa, emphasizing its ongoing commitment to sub-Saharan Africa where it perceives strong growth opportunities.
In Nigeria, Uber had been operating since 2014. Drivers in the country have frequently voiced grievances regarding low app-based prices, particularly in light of rising fuel costs, and high commission rates charged by the platform. The Nigerian market has also seen increased competition from rivals such as Bolt and inDrive, alongside local operators. The removal of Nigeria's fuel subsidy in 2023 further exacerbated cost-of-living pressures for motorists.
Uber's departure from Uganda, where it began operations two years after Nigeria, is expected to create a void for commuters in the capital, Kampala. However, other taxi apps like Faras, Bolt, and SafeBoda are anticipated to fill this gap. The company has pledged to support affected employees and drivers and will keep its help center open in both countries until September 23 to address outstanding issues.