Uber leaves two key African markets — and their drivers in despair
Uber's departure from Nigeria and Uganda has left countless customers high and dry. But what about drivers? With fuel prices, maintenance and other operating costs rising, many say they're struggling to make a living.
Uber is pulling out of Nigeria and Uganda, two major African markets where the company had built up a significant presence. This abrupt decision comes as the ride-hailing giant struggles to maintain profitability in the region, facing stiff competition from local platforms such as Bolt, inDrive, and SafeBoda. Drivers across Africa are grappling with shrinking profit margins amid rising fuel costs, inflation, and currency volatility, especially in Nigeria.
Uber's commission fees of 20% - 25% per trip fare no longer seem sustainable for many drivers. In Abuja, Uber driver Abbas Olamide expressed dissatisfaction with the company's high commission rates, which have left him with little to no income after paying airport parking fees. Another driver from Lagos, Samuel Olatunji, plans to join hundreds of other drivers who will now need to use other ride-hailing apps to maintain a steady income.
The company did not provide a detailed explanation for its exit, but analysts point to double-digit inflation in many African countries, which has eroded the purchasing power of millions and pushed consumers deeper into poverty. This, coupled with shrinking naira revenues for Uber drivers, has made fares climb faster than the average rider's willingness or ability to pay.
InDrive, another African competitor, operates under a negotiated-fare approach, which may provide a more sustainable model for both drivers and passengers.
Written by urgent.news from DW English (Top Stories)'s reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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