Ride-hailing giant Uber has officially ended its operations in Nigeria and Uganda, ending a 12-year presence in Nigeria and roughly a decade of service in Uganda. The company stated that the decision followed a thorough review of its business priorities, while confirming that it remains committed to sub-Saharan Africa. The departure marks the latest in a series of exits from African markets for the platform, following previous withdrawals from Ivory Coast last year and Tanzania in January.
In Nigeria, steep operating costs have created severe pressure for ride-hailing drivers. Recent government economic reforms, including the removal of fuel subsidies and changes to the naira's exchange rate, have sharply increased petrol prices, vehicle maintenance, and spare parts costs. With Uber taking commissions between 25 and 30 percent, driver profits dropped significantly. Mounting frustration led drivers for Uber and rival platforms to stage a three-day strike across Lagos and Ogun in March to demand higher fares and improved working conditions.
High platform fees and rising expenses have also made it difficult for Uber to retain drivers in a competitive market. Representatives from the Amalgamated Union of App-Based Transporters of Nigeria noted that many drivers have switched to rival apps such as Bolt and inDrive, or gone offline to take cash-only trips. Competing platforms like inDrive allow drivers and passengers to negotiate fares directly while charging lower service fees, making them attractive alternatives for workers struggling to cover basic expenses.
Uber's market departures highlight the complex challenge of balancing passenger affordability, driver income, and company profits. However, pulling out is not universal across all markets. In Kenya, where the government introduced regulations capping platform commissions at 18 percent in 2022, Uber lowered its fees from 25 percent and continued operating. The contrast suggests that while large urban populations offer strong demand, long-term sustainability depends on whether the economic model works for drivers and platforms alike.