Uber ended its services in Nigeria and Uganda on September 2, closing a 12-year run in Nigeria and about a decade of operations in Uganda. The company said the decision followed a “thorough review” of its business priorities and was limited to those two countries.
The exits come as drivers and ride-hailing platforms face rising operating costs while trying to keep journeys affordable for passengers. Uber has not given a detailed country-by-country explanation for either departure.
Nigeria’s cost squeeze pushed drivers to protest
Economic reforms under President Bola Tinubu, including the removal of the fuel subsidy and changes to the naira’s exchange-rate regime, increased the cost of petrol, imported spare parts and vehicle maintenance for Nigerian drivers. Fares remained under pressure, squeezing the income available after expenses. Read the context: Fake Federal Agency Scandal Puts Nigeria Government Under Pressure.
The strain contributed to a three-day strike in March by drivers working for Uber, Bolt and inDrive in Lagos and Ogun. Drivers described fares and working conditions as unsustainable. The Amalgamated Union of App-Based Transporters of Nigeria said drivers were also moving to rival platforms or taking cash trips offline. Related coverage: Court temporarily stops impeachment process against South African President Cyril Ramaphosa.
Uber competes in Nigeria with Bolt and inDrive, as well as local services including Rida and LagRide. inDrive lets passengers and drivers negotiate fares and has generally used a service fee of about 10 percent, compared with the 25–30 percent commission cited by the union for platforms.
Uganda had a similar platform-versus-driver problem
In Uganda, the Smart Online Drivers Association petitioned parliament in 2019 over what it called exploitative practices. Drivers focused particularly on Uber’s 25 percent commission while fares remained low.
Bolt and SafeBoda were established competitors in Kampala before Uber’s departure, while Faras, Yango and Tinka added further competition. Uber entered Uganda in 2016 and later launched UberBODA.
The pressure in both countries reflects a three-way balancing problem: passengers seek affordable trips, drivers need enough income to cover their costs, and platforms need sufficient commission to sustain the service.
Uber is taking a more selective approach
Uber previously left Ivory Coast after six years and ended its Tanzania service in January after nearly a decade. The company says it is focusing investment on markets where it can offer earning opportunities for drivers at scale and allow riders to travel seamlessly, while stressing that it remains committed to sub-Saharan Africa.
Kenya shows that Uber does not always respond to pressure by leaving. After Kenya introduced an 18 percent cap on ride-hailing commissions in 2022, Uber reduced its commission from 25 percent to 18 percent following driver protests.
The company has not said that Nigeria or Uganda were unprofitable. The departures instead show that market size and passenger demand do not by themselves determine whether the business can continue: the costs borne by drivers, the fares passengers will accept and the platform’s commission must all remain workable.
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