Uber Closes Operations in Nigeria and Uganda Amidst Rising
Uber Closes Operations in Nigeria and Uganda Amidst Rising
Key Highlights
- On the African continent, Uber now only operates in Egypt, Ghana, Kenya and South Africa Uber has announced it is closing its operations in Nigeria - Africa's most populous country - and the East African nation of Uganda with immediate effect The global ride-hailing giant said it had come to the "difficult decision" after a thorough review of its business.
- It began operating in Nigeria in 2014 and in Uganda two years later.
- Uber taxi drivers in Nigeria have long complained that prices on the app are too low, given the rising cost of fuel, and that commission charges are too high.
Uber has announced the abrupt closure of its operations in Nigeria and Uganda, effective immediately, leaving Egypt, Ghana, Kenya, and South Africa as the only African countries where the ride-hailing giant continues to operate.
The decision, made after a thorough review of its business, has been met with mixed reactions from stakeholders. Uber's chief executive, Dara Khosrowshahi, confirmed the move in a statement, citing the need for a "difficult decision" that does not impact the company's operations across the rest of the continent.
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The Nigerian market, which Uber entered in 2014, has been plagued Taxi drivers have long complained about commission charges being too high and prices on the app being too low. The removal of Nigeria's fuel subsidy after President Bola Tinubu's election in 2023 further exacerbated the situation.
The exit marks a significant blow to Uber's presence in sub-Saharan Africa, where it had seen strong growth and opportunity. Over its 12 years operating in Nigeria, Uber expanded its services, including a boat service launched in Lagos in 2019 to help commuters navigate the city's notorious traffic jams.
Lagos, one of Africa's largest and busiest cities, remains infamous for its gridlock, which hampers business activity. Other ride-hailing apps have also struggled in the market, with drivers staging protests and industrial action over rising operating costs, low fares, and working conditions.
In Uganda, Uber's departure is expected to significantly impact commuters in Kampala, but local operators are likely to fill the void. The company has pledged to support employees and drivers affected
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This move comes as Uber continues its global restructuring efforts, which include cutting over 3,000 jobs worldwide. The company's chief executive, Dara Khosrowshahi, has been navigating a challenging business landscape, with intense competition from rival platforms and rising costs.
As for Kenya, where Uber still operates, the government is pushing to make motorbike taxis go electric. Meanwhile, Nigerian shoppers are warming up to online retailers, and drivers in South Africa are facing their own challenges as the country grapples with rising fuel costs and low fares.
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I write about the forces shaping business and the global economy, from startup growth and changing markets to international trade and policy. My work focuses on breaking down complex developments into clear, practical insights and understanding what they could mean for businesses, investors, and the wider economy.
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