Uber Ceases Operations in Nigeria and Uganda

Uber has halted ride-hailing services in Nigeria and Uganda following a business review.

Leaving Nigeria after 12 years and Uganda after 10, the platform reduces its African footprint to just four nations: Egypt, Ghana, Kenya, and South Africa.

The retreat follows years of local driver discontent regarding high platform commissions, unviable app fares, and soaring fuel costs – exacerbated by Nigeria’s 2023 gasoline subsidy removal.

Additionally, competitive pressure mounted from regional operators like Bolt, inDrive, SafeBoda, and Faras. An economics professor noted that impact on Nigerian gross domestic product will remain limited as drivers migrate to rival platforms.

The African exits coincide with global restructuring. CEO Dara Khosrowshahi announced 3,300 job cuts – 10% of Uber’s workforce – to redirect $10 billion into self-driving vehicle development.

Strong criticism emerged from local labour groups. The head of the Lagos branch of the United App-based Transport Workers Union noted the decision serves as a warning on transport sustainability, whilst a union spokesperson described the company’s business model as “exploitative and not recognising workers’ rights or collective bargaining.”

Uber confirmed support channels will remain open until 23 September to assist affected drivers and workers with outstanding matters.

Image Credit: Source