Uber Exits Nigeria and Uganda After Over a Decade of Operations, Here’s Why

Uber is officially ending its operations in Nigeria, closing the door on more than a decade of business in Africa’s most populous country. According to BBC, the global ride-hailing company announced it would cease operations in both Nigeria and Uganda with immediate effect. Uber described the Uber Nigeria exit as a “difficult decision” following a thorough review of its business operations.

The company first entered Nigeria in 2014 before expanding into Uganda two years later. This departure coincides with Uber CEO Dara Khosrowshahi’s announcement that the company is cutting its global workforce by 10 per cent. While Uber is leaving these two major African markets, the company insists this doesn’t signal a broader retreat from the continent. Uber stated: “This 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.”

Why Uber is leaving Nigeria

The Uber Nigeria exit follows years of mounting challenges within the country’s ride-hailing industry. According to BBC reporting, Uber drivers have repeatedly complained about low fares on the platform, particularly as fuel costs continued rising, alongside frustrations over the company’s commission charges. Drivers across Nigeria’s broader ride-hailing sector have also staged protests and industrial action in recent years over operating costs, fares and working conditions.

These pressures unfolded alongside wider economic shifts in Nigeria. The country removed its longstanding fuel subsidy following President Bola Tinubu’s election in 2023, contributing significantly to rising living costs. Motorists faced further strain this year when petrol prices increased again following the U.S. war with Iran. Uber also faced growing competition throughout its time in Nigeria, with international platforms such as Bolt and inDrive operating alongside several local ride-hailing companies.

During its 12-year presence, Uber expanded beyond traditional car rides. In 2019, the company even launched a boat service in Lagos, offering commuters an alternative way to navigate the city’s notorious traffic congestion.

Nigeria and Uganda aren’t Uber’s first recent departures from the continent. According to the same report, the company previously withdrew from Ivory Coast and Tanzania within the past year. Following this latest exit, Egypt, Ghana, Kenya and South Africa remain the only African countries where Uber continues to operate.

The ride-hailing company said it plans to support affected employees and drivers throughout the transition, with its help centre remaining available in Nigeria and Uganda until 23 September to address any outstanding issues.

Do you think Uber’s exit will create opportunities for local ride-hailing platforms to gain a stronger foothold in Nigeria?