Uber exits Nigeria and Uganda, narrowing African footprint

Uber began operating in Nigeria in 2014 and in Uganda in 2016, but the company has faced growing pressure from local and international competitors, as well as persistent complaints from drivers. Nigerian taxi drivers had long criticised Uber's pricing structure, arguing that fares were too low given the rising cost of fuel, and that commission charges were too high.

Over the past year, Uber has pulled out of Ivory Coast and Tanzania. Following the latest closures, the company now operates in only four African countries: Egypt, Ghana, Kenya and South Africa.

The announcement came on the same day Uber's chief executive, Dara Khosrowshahi, said the company was cutting its global workforce by 10%, or over 3,000 jobs, as part of a major restructuring.

In a statement to the BBC, Uber said: 'This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent. We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.'

During its 12 years in Nigeria, Uber had expanded its services, including launching a boat service in Lagos in 2019 to help commuters bypass the city's notorious traffic congestion. However, a wave of ride-hailing competitors, including international rivals, have entered the Nigerian market in recent years, intensifying competition.

Why This Matters

Over 200 million people in Nigeria and Uganda lose access to Uber's platform, disrupting both riders and the thousands of drivers who relied on the app for income.
The exits signal a broader retrenchment by global tech giants in African markets, where rising operational costs and local competition are squeezing margins.
Uber's simultaneous global job cuts suggest the Africa pullout is part of a wider cost-saving strategy, not a standalone decision.

Background

Uber entered Nigeria in 2014, making it one of the company's early African markets. The continent was seen as a high-growth opportunity due to rapid urbanisation and limited public transport. However, the company has consistently struggled with profitability in the region. Driver dissatisfaction over low fares and high commissions has been a recurring issue, and local competitors — such as Bolt and others — have eroded Uber's market share. The withdrawal from Nigeria and Uganda follows exits from Ivory Coast and Tanzania in the past year, leaving Uber with a significantly reduced African footprint.

Key Perspectives

Uber: The company frames the decision as a strategic review, emphasising its continued commitment to sub-Saharan Africa via remaining markets. It points to strong growth in Egypt, Ghana, Kenya and South Africa. Drivers: Nigerian and Ugandan Uber drivers lose their primary income source. Many had already complained that the app's pricing was unsustainable given fuel price hikes. The sudden shutdown leaves them with little transition time. Competitors: Local and international ride-hailing rivals in Nigeria and Uganda stand to gain market share, but may also face scrutiny over their own pricing and driver treatment.

What to Watch

Whether Uber further consolidates in Africa or exits additional markets such as Ghana or Kenya.
How the Nigerian and Ugandan governments respond — whether they seek to regulate the ride-hailing sector more tightly or attract alternative operators.
The impact of Uber's global workforce reduction on its remaining African operations, particularly driver support and local teams.

ZOTPAPER