Uber shuts operations in Nigeria and Uganda with immediate effect

Uber has announced it is closing its operations in Nigeria and Uganda with immediate effect. The global ride-hailing giant cited a thorough review of its business as the reason for this difficult decision. Uber began operating in Nigeria in 2014 and in Uganda two years later. The company has faced criticism from taxi drivers in Nigeria who claim that prices on the app are too low due to rising fuel costs and high commission charges.

The company has also faced pressure from rival platforms. Uber's CEO, Dara Khosrowshahi, announced that the company is cutting its global workforce by 10%, including over 3,000 jobs. This decision means that Egypt, Ghana, Kenya, and South Africa are now the only African countries in which Uber operates. The company has already pulled out of Ivory Coast and Tanzania in recent years.

Uber stated that this decision is limited to these two markets and does not impact its operations in the rest of Africa. The company remains committed to sub-Saharan Africa, where it continues to see strong growth and opportunity. Over its 12 years of operation in Nigeria, Uber expanded its services, including launching a boat service in Lagos to help commuters bypass traffic congestion.

However, the Nigerian market has become increasingly challenging due to rising operating costs, low fares, and working conditions. In Uganda, Uber's departure will mean a major change for commuters in the capital, Kampala, but the void is likely to be filled by other taxi apps. Uber pledged to support affected employees and drivers and promised to keep its help centre open until September 23rd to handle outstanding issues.