Uber Shuts Down Operations in Nigeria and Uganda, Citing Business Challenges

Ride-hailing giant exits two African markets after over a decade of service

Uber has announced it is immediately ceasing operations in Nigeria—Africa’s most populous country—and Uganda, marking a significant shift in the company’s African footprint.

The global ride-hailing giant described the move as a “difficult decision” reached after a comprehensive review of its business operations in both markets. The company first launched in Nigeria in 2014 and expanded to Uganda two years later.

Impact on African Operations

Following this withdrawal, Uber now operates in only four African countries:

· Egypt
· Ghana
· Kenya
· South Africa

This marks the latest in a series of African market exits for the company, which previously pulled out of Ivory Coast and Tanzania within the last year.

Uber emphasized that the decision “is limited strictly to these two markets and does not impact our operations across the rest of the continent.”

“We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity,” the company added.

Challenges in the Nigerian Market

Uber’s departure from Nigeria comes amid mounting difficulties for ride-hailing platforms in the West African nation:

· Driver protests over low fares and high commission charges
· Rising fuel costs following the removal of Nigeria’s fuel subsidy in 2023
· Increased competition from international rivals like Bolt and inDrive, as well as local operators
· Economic pressures from the rising cost of living

Nigerian Uber drivers have long complained that the app’s pricing fails to account for escalating operational costs, while commission fees remain prohibitively high.

The fuel subsidy removal under President Bola Tinubu’s administration in 2023 sent petroleum prices soaring after decades of government price controls. More recently, motorists have faced additional petrol price hikes following tensions between the US and Iran.

Lagos Innovation and Challenges

During its 12-year presence in Nigeria, Uber had expanded its services significantly. In Lagos—one of Africa’s largest and busiest cities—the company launched a boat service in 2019 to help commuters bypass the city’s notorious congestion and infamous traffic jams that frequently cause gridlock.

However, the competitive landscape has become increasingly challenging for all ride-hailing platforms, with drivers staging protests and industrial action in recent years over operating costs and working conditions.

Uganda’s Changing Transportation Landscape

Uganda’s Daily Monitor newspaper reported that Uber’s exit would significantly impact commuters in the capital, Kampala. However, the publication noted that other taxi apps—including Faras, Bolt, and SafeBoda—are expected to fill the void left by Uber’s departure.

Employee and Driver Support

Uber has pledged to support employees and drivers affected by the decision. The company’s help centre will remain operational for those in Nigeria and Uganda until September 23 to address outstanding issues.

Global Context

The African market exits coincide with a broader restructuring at Uber. CEO Dara Khosrowshahi recently announced the company would cut its global workforce by 10%, eliminating over 3,000 jobs as part of a major global reorganization aimed at making operations “simpler and faster.”