Uber exits Nigeria and Uganda with immediate effect, leaving African operations limited to four countries

Global ride-hailing company Uber has announced the immediate closure of its operations in Nigeria and Uganda, ending years of service in two key African markets.

The company said the decision followed a detailed review of its business and described the move as a difficult one. Uber began operating in Nigeria in 2014 before expanding into Uganda in 2016.

The withdrawal comes amid growing challenges in both markets, particularly rising operating costs and increasing pressure from drivers and competing ride-hailing platforms.

In Nigeria, Uber drivers have for years raised concerns about fares, arguing that prices on the platform have failed to keep pace with the rising cost of fuel and vehicle operations. Drivers have also criticised the commissions charged by ride-hailing companies.

The announcement coincides with Uber CEO Dara Khosrowshahi’s disclosure that the company plans to reduce its global workforce by 10%.

Uber scales back African operations

Uber’s exit from Nigeria and Uganda follows its withdrawal from Côte d’Ivoire and Tanzania within the past year.

The latest departures leave the company operating in just four African countries: Ghana, Egypt, Kenya and South Africa.

Uber, however, stressed that its decision should not be interpreted as a withdrawal from the continent.

“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” the company said in a statement to the BBC.

It added that it remained committed to sub-Saharan Africa, where it continues to see opportunities for growth.

Twelve years in Nigeria

Uber established its Nigerian operations in 2014 and subsequently expanded its services beyond conventional car rides.

In Lagos, the company introduced a boat service in 2019 as an alternative means of transportation for commuters seeking to avoid the city’s notorious traffic congestion.

Lagos is among Africa’s largest and busiest urban centres and is well known for severe traffic jams that regularly disrupt movement and economic activity.

Despite Uber’s presence, Nigeria’s ride-hailing industry has become increasingly competitive, with platforms including Bolt and inDrive competing alongside several locally owned operators.

The sector has also faced growing tensions over operating conditions. Drivers have staged protests and industrial actions in recent years, citing low fares, rising expenses and concerns over working conditions.

Rising fuel costs add pressure

The removal of Nigeria’s long-standing fuel subsidy following President Bola Tinubu’s election in 2023 significantly increased fuel prices and contributed to a broader rise in living costs.

Transport operators have since faced additional pressure from fluctuations in petrol prices and other operating expenses.

The latest increase in fuel costs has further affected motorists and businesses, adding to the challenges facing the country’s transport sector.

Uganda prepares for Uber’s exit

In Uganda, Uber’s departure is expected to create a significant change for commuters, particularly in Kampala.

However, local reports indicate that other ride-hailing services, including Faras, Bolt and SafeBoda, could benefit from the gap left by Uber.

The company said it would provide assistance to employees and drivers affected by the withdrawal.

Uber also confirmed that its help centres in Nigeria and Uganda would remain available until September 23 to address outstanding concerns and assist affected users and partners.

The departure marks a major change in Africa’s ride-hailing landscape, particularly in Nigeria, where Uber had built a substantial presence over more than a decade.