👨🏿🚀TechCabal Daily – Uber goes bye-bye

On Wednesday, Uber drivers in Nigeria and Uganda were met with the disheartening message of “No trips available” when they attempted to use the popular ride-hailing app. This abrupt shutdown comes after Uber announced plans to lay off approximately 3,300 employees, which make up about 10% of its global workforce, in an effort to refocus on ride-sharing, delivery, and autonomous vehicles.

Uber entered the Nigerian market in 2014 and Kampala, Uganda in 2016 as part of its broader expansion in Africa. While the ride-hailing service has been well-received in many cities, it has faced a number of challenges in Nigeria that have made it difficult to maintain profitability. Tensions surrounding fare and commission structures have led to protests from drivers, who have complained about their earnings and the overall economics of operating on the platform.

Additionally, rising fuel prices, vehicle maintenance costs, intense competition, and regulatory hurdles have further complicated Uber's efforts to grow its market share in Nigeria.

The company's decision to wind down operations in these two African nations is a significant setback for the ride-hailing industry in the region. As Uber exits the market, local drivers will be receiving a one-time goodwill payment to assist with their transition to alternative sources of income.