Uber has announced an immediate end to its operations in Nigeria and Uganda following a review of its business in both markets.
The global ride-hailing company said it made the “difficult decision” after conducting a thorough assessment of its operations. Uber launched its Nigerian service in 2014 and entered Uganda two years later.
The decision leaves Uber operating in only four African countries — Egypt, Ghana, Kenya and South Africa.
Rising costs put pressure on Uber
Uber drivers in Nigeria have repeatedly complained about low fares on the platform, saying the rates have failed to keep pace with rising fuel and operating costs.
Drivers have also criticised the commissions Uber charges, while the company has faced growing competition from rival ride-hailing platforms.
The latest development comes as Uber Chief Executive Officer Dara Khosrowshahi announced plans to cut 10% of the company’s global workforce.
Uber has also withdrawn from Ivory Coast and Tanzania within the past year.
The company said its decision to leave Nigeria and Uganda would not affect its operations elsewhere in Africa.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber said in a statement to the BBC.
“We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.”
Uber expanded services in Nigeria
During its 12 years in Nigeria, Uber expanded beyond conventional car-hailing services.
In Lagos, the company launched a boat service in 2019 to help commuters avoid the city’s notorious traffic congestion.
Lagos ranks among Africa’s busiest cities, and severe traffic jams frequently disrupt movement and economic activity.
Uber’s exit comes as Nigeria’s ride-hailing sector faces mounting pressure.
Competitors including Bolt and inDrive, alongside several local operators, have established a presence in the market over the past decade.
However, drivers across the industry have staged protests and industrial actions in recent years over rising operating expenses, low fares and working conditions.
Fuel costs add to industry’s challenges
The removal of Nigeria’s petrol subsidy after President Bola Tinubu took office in 2023 sharply increased living and transportation costs.
The subsidy had kept petrol prices relatively low for decades before the government removed it.
Motorists have faced further pressure this year following another increase in petrol prices linked to the US war with Iran.
In Uganda, the Daily Monitor newspaper reported that Uber’s departure would significantly affect commuters in Kampala.
However, the newspaper said other ride-hailing services, including Faras, Bolt and SafeBoda, could move quickly to fill the gap.
Uber said it would support employees and drivers affected by the withdrawal.
The company also said its help centre would remain available to customers and drivers in Nigeria and Uganda until September 23 to resolve outstanding issues.
