Uber has abruptly ended its operations in Nigeria and Uganda, shutting down its services in two African markets with immediate effect after a review of its business. The move comes as the ride-hailing company faces rising operating costs, complaints from drivers over low fares and competition from rival taxi platforms.
Uber, which entered Nigeria in 2014 and Uganda two years later, said it had made the “difficult decision” to leave the two countries following a thorough review of its business.
The exit marks a major change for commuters and drivers who have relied on the platform, particularly in Nigeria, where Uber had spent more than a decade expanding its services.
Drivers in Nigeria have for years raised concerns over fares, saying prices offered through the app were too low amid rising fuel and other operating costs. They have also complained about the commissions charged by ride-hailing companies.
The company has faced growing competition from other platforms, including international firms such as Bolt and inDrive, as well as local operators that have expanded their presence in the Nigerian market.
Uber's departure also comes at a difficult time for the global company. Chief executive Dara Khosrowshahi announced that Uber would cut 10% of its global workforce.
The company has also withdrawn from Ivory Coast and Tanzania over the past year, further reducing its presence on the African continent.
Following the latest exits, Uber will now operate in only Egypt, Ghana, Kenya and South Africa among African countries.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber's statement to the BBC said.
“We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.”
During its 12 years in Nigeria, Uber expanded beyond traditional car-hailing services. In 2019, it launched a boat service in Lagos, allowing commuters to travel by water and avoid some of the city's heavy traffic.
Lagos is one of Africa's largest and busiest cities and is known for severe traffic congestion, with long delays often affecting commuters and business activity.
However, the wider ride-hailing industry in Nigeria has struggled with increasing costs and pressure from drivers.
Drivers have staged protests and taken industrial action in recent years, demanding better fares, lower costs and improved working conditions.
The removal of Nigeria's fuel subsidy after President Bola Tinubu came to power in 2023 further pushed up the cost of living, after the subsidy had kept petroleum prices lower for decades.
Motorists have faced another increase in fuel costs this year following the rise in petrol prices linked to the US's war with Iran.
In Uganda, Uber's departure is also expected to change the transport options available to commuters, particularly in the capital Kampala.
Uganda's Daily Monitor reported that the gap left by Uber could be taken up by other ride-hailing platforms, including Faras, Bolt and SafeBoda.
Uber said it would support employees and drivers affected by the decision and keep its help centre open in Nigeria and Uganda until September 23 to handle outstanding issues.
The company said the closure was limited to the two markets and maintained that it remains committed to its operations elsewhere in sub-Saharan Africa.