Uber exits Nigeria and Uganda as ride-hailing costs soar
Uber has ceased operations in Nigeria and Uganda after more than a decade, following earlier exits from Ivory Coast and Tanzania. The company cited a review of business priorities, but the move reflects rising fuel and maintenance costs that have made it difficult for drivers to earn a profit while keeping fares affordable. The pullouts underscore the economic challenges of operating ride-hailing platforms in African markets.
Uber's September 2 departure from Nigeria and Uganda follows its earlier withdrawal from Ivory Coast in 2025 and Tanzania in January. The company framed these moves as a strategic reassessment of priorities, though the underlying pressures include steep operational costs and intense competition from rivals like Bolt and inDrive, which offer lower fees or fare negotiation.
In Nigeria, President Tinubu's economic reforms—specifically ending fuel subsidies and adjusting the naira—have driven up petrol and spare-part prices. Drivers, facing 25-30% platform commissions, staged a three-day strike in March. Many have shifted to competing apps or arranged off-platform cash trips to sustain their livelihoods.
Uber's retreat could reshape urban mobility in affected cities, potentially reducing service availability and pushing more passengers toward local competitors. Drivers may face further income instability if remaining platforms adjust commissions, while passengers could see fare volatility. The exits may also signal to other international ride-hailing firms that African markets require localized cost structures, possibly slowing future investment or encouraging more flexible, driver-friendly models to sustain operations.