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 announced its withdrawal from Nigeria and Uganda, two of its key African markets, leaving drivers in these countries without a reliable income source. The ride-hailing platform had been operating in Africa for over a decade, but its decision to withdraw came amid mounting concerns over profit margins, rising fuel costs, inflation, and currency volatility.
Drivers in Nigeria, such as Abbas Olamide and Samuel Olatunji, expressed their frustration over the high commission rates and shrinking earnings. Similarly, drivers in Lagos, like Samuel Olatunji, also indicated that they would need to switch to other ride-hailing apps to maintain their income. Uber's decision to exit these markets is attributed to the growing costs of operating in Africa, including fuel, maintenance, and insurance, coupled with a weakening naira currency.
The firm's cost base is linked to the US dollar, while drivers' revenue is shrinking in local currency. This has led to thin profit margins for Uber, making the business model unsustainable. While Uber's decision does not impact its operations in Egypt, Ghana, Kenya, and South Africa, the exit has left drivers in Nigeria and Uganda in despair, as they search for alternative means of earning a living.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
