Uber’s $14 ride problem in Nigeria

Uber's presence in Nigeria lasted for 12 years before the company decided to withdraw from the market. In 2025, Uber reported global gross bookings of $193.45 billion from an impressive 13.57 billion trips. On average, this translates to $14.26 per reported trip. The challenge for Uber in Nigeria was not necessarily a lack of demand; it was rather the low value of that demand, which may not have justified the investment required to maintain operations.

In Nigeria, Uber's rides were considerably cheaper than the global average, putting pressure on fares. Increasingly price-sensitive riders, higher operating costs for drivers, and fierce competition all contributed to the decline in Uber's appeal in the Nigerian market. The term "gross bookings" refers to the total dollar value of mobility rides, delivery orders, excluding consumer discounts, refunds, driver and merchant earnings, and driver incentives, as well as freight revenue.

For example, Oluwasegun Peter, a newly employed Uber driver, earned ₦44,000 (approximately $30.65) across six trips lasting eight hours. This works out to a gross booking value of about ₦7,333 ($5.11) per trip. Comparatively, drivers of competitors like Bolt and inDrive in Lagos could earn between ₦12,500 ($8.71) and ₦13,000 ($9.05) per hour of ride-sharing, while Uber fares were slightly lower at around ₦9,000 ($6.27) per trip.

Even on weekends, Uber drivers reported earnings of around ₦350,000 ($243.77) from approximately 35 trips, averaging roughly ₦10,000 ($6.97) per trip. However, these figures represent gross driver earnings, not Uber's reported fares or gross bookings, which makes direct comparisons challenging.

Uber's global model relies on an average gross booking value of $14.26 per trip. To equal this value with a single ride in Nigeria, approximately two rides would be needed, given the lower average fare of ₦7,333 to ₦10,000 ($5.11 to $6.97) per trip before commissions and other charges. This lower-value ride demands an immense volume of transactions to compensate for the smaller value of each trip, putting immense pressure on the Nigerian market.