Global ride-hailing giant Uber has announced the closure of its operations in Nigeria, Africa’s most populous country, and Uganda, with immediate effect.
Uber said it had reached the “difficult decision” following a thorough review of its business operations in the two countries. The company began operating in Nigeria in 2014 and expanded into Uganda two years later.
Uber drivers in Nigeria have long complained that fares on the platform are too low amid rising fuel and operating costs, while commission charges remain high. The company has also faced growing competition from rival ride-hailing platforms.
The announcement comes as Uber Chief Executive Officer Dara Khosrowshahi said the company was cutting its global workforce by 10 per cent.
Over the past year, Uber has also withdrawn from Côte d’Ivoire and Tanzania. Its latest decision means Egypt, Ghana, Kenya and South Africa are now the only African countries where Uber continues to operate.
“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.”
During its 12 years of operations in Nigeria, Uber expanded its range of services. In Lagos, the country’s commercial hub, the company launched a boat service in 2019 to help commuters bypass the city’s notorious traffic congestion.
Lagos, one of Africa’s largest and busiest cities, is notorious for lengthy traffic jams that cause gridlock and disrupt business activity.
Several other ride-hailing platforms have entered the Nigerian market over the past decade, including international competitors such as Bolt and inDrive, as well as a number of local operators.
However, the Nigerian market has become increasingly challenging for ride-hailing companies. Drivers have staged protests and industrial actions in recent years over rising operating costs, low fares and working conditions.
The removal of Nigeria’s fuel subsidy following President Bola Tinubu’s election in 2023 contributed to a sharp rise in the cost of living. The subsidy had kept petroleum prices relatively low for decades.
Motorists have faced further pressure this year following a rise in petrol prices amid the US conflict with Iran.
In Uganda, the Daily Monitor newspaper said Uber’s departure would bring a major change for commuters in the capital, Kampala. However, it said the gap was likely to be filled by other ride-hailing platforms, including Faras, Bolt and SafeBoda.
Uber said it would support employees and drivers affected by the decision. Its help centre will also remain open to customers, drivers and other users in Nigeria and Uganda until September 23 to address outstanding issues.
