Uber announces immediate exit from two key African markets
Uber has confirmed it will cease all operations in Nigeria, Africa’s most populous country, and Uganda starting immediately. The decision follows a detailed internal assessment of its business performance in both locations.
Background of Uber’s presence in the region
The company began services in Nigeria in 2014 and entered Uganda in 2016. Over the years it expanded offerings, including a boat service in Lagos launched in 2019 to help commuters avoid heavy traffic. Despite this growth, the firm faced ongoing challenges from rising fuel costs and competition.
Reasons behind the closure
Drivers in Nigeria have repeatedly protested low fares on the platform and high commission rates. Additional pressure came from rivals such as Bolt and inDrive, along with several local operators. The removal of fuel subsidies in Nigeria after 2023 and subsequent petrol price increases further strained the market.
Impact on remaining African operations
Uber stated that the withdrawal affects only Nigeria and Uganda. It continues to operate in Egypt, Ghana, Kenya and South Africa. The company emphasized its ongoing commitment to sub-Saharan Africa and noted strong growth in the remaining markets.
Support for affected users and workers
Uber said it will assist employees and drivers impacted by the decision. Its help centre will stay open until 23 September to handle outstanding matters in the two countries.
Market reactions and alternatives
Local reports indicate that other ride-hailing apps such as Bolt, Faras and SafeBoda are expected to fill the gap in Uganda’s capital, Kampala. In Nigeria, existing competitors are already active and may gain additional users following Uber’s departure.
