Nigeria: How Uber Exit Affects Drivers, Passengers
[Daily Trust] The decision by Uber to wind down its ride-hailing operations in Nigeria has triggered concerns among drivers, passengers and industry stakeholders, with fears that the exit could reduce competition, increase transportation costs and further weaken earning opportunities for app-based transporters.
The decision by Uber to discontinue its ride-hailing services in Nigeria has sparked concerns among drivers, passengers, and industry stakeholders. Uber cited an exploitative business model and a failure to protect workers' rights as reasons for its exit. The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) criticized Uber for abandoning drivers without adequate notice and accused the company of sponsoring internal crises and frustrating negotiations with drivers.
Drivers and customers in Abuja expressed mixed reactions, with some lamenting the end of driver bonuses and promotions while others noted the emergence of alternative platforms like Bolt and InDrive. Uber's exit has raised broader questions about competition in Nigeria's ride-hailing market, with Uber's contributions estimated to have contributed approximately N34 billion to the country's economy in 2023 and enabled drivers to earn an additional N6.1 billion annually.
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