Uber shuts operations in Nigeria and Uganda with immediate effect

Uber has announced the immediate closure of its operations in Nigeria and Uganda, the two most populous nations on the African continent. The decision comes after a comprehensive review of the company's business operations in these markets. Uber began its journey in Nigeria in 2014 and followed two years later with its entry into Uganda.

The ride-hailing giant faced a multitude of challenges in these markets, including complaints from local drivers regarding excessively low prices due to escalating fuel costs and high commission charges. Furthermore, Uber grappled with competition from other taxi apps and pressure from local operators. CEO Dara Khosrowshahi disclosed that the company is also reducing its global workforce by 10%.

Over the past year, Uber has withdrawn from Ivory Coast and Tanzania, leaving Egypt, Ghana, Kenya, and South Africa as the sole African nations under its operation. The company's statement clarified that this decision pertains exclusively to Nigeria and Uganda, with no impact on its operations in the rest of the African continent.

Uber remains optimistic about its future in sub-Saharan Africa, where it continues to observe robust growth and opportunities. The company has been active in Nigeria for 12 years, expanding its services to include a boat service in Lagos to combat traffic congestion. However, the Nigerian market has become increasingly challenging due to increased operating costs, low fares, and poor working conditions.

This led to driver protests and industrial action in recent years. The removal of Nigeria's fuel subsidy, which kept petroleum prices low, exacerbated the situation. Uganda's Daily Monitor newspaper noted that Uber's departure would significantly impact commuters in Kampala, the capital, although other apps like Faras, Bolt, and SafeBoda are expected to fill the gap.

Uber assured affected employees and drivers that they would receive support until September 23, providing assistance via their help centre in both countries.