Uber shuts operations in Nigeria and Uganda with immediate effect

Uber has abruptly ceased its operations in Nigeria and Uganda, effective immediately. The ride-hailing giant made the difficult decision following a comprehensive review of its business practices. Uber had been present in Nigeria since 2014 and Uganda since 2016. Drivers in Nigeria have often complained about low fares, high commission charges, and increasing fuel costs.

Rival platforms have also put pressure on Uber. Uber CEO Dara Khosrowshahi announced that the company would reduce its global workforce by 10%. Over the past year, Uber has also exited Ivory Coast and Tanzania, leaving only Egypt, Ghana, Kenya, and South Africa as the remaining African nations it operates in. This decision specifically pertains to Nigeria and Uganda and does not affect Uber's presence in other parts of Africa.

Uber stated that its commitment to sub-Saharan Africa remains strong, citing continued growth and opportunities in the region. Throughout its 12-year presence in Nigeria, Uber expanded its services, including a boat service in Lagos to combat traffic congestion. However, the market has become increasingly difficult due to protests by drivers over rising costs, low fares, and poor working conditions.

The removal of Nigeria's fuel subsidy after President Bola Tinubu's 2023 election exacerbated the situation. Uganda's Daily Monitor reported that Uber's departure will significantly impact commuters in Kampala, although other taxi apps like Faras, Bolt, and SafeBoda are expected to fill the gap. Uber assured affected employees and drivers that its help center would stay open until September 23 to address any remaining concerns.