Uber announced on September 2 that it would cease operations in Nigeria and Uganda, ending a 12‑year run in the former and a decade in the latter. The decision followed a “thorough review” of the company’s business priorities, the firm said, without providing specific reasons for the exits.
These departures come after Uber’s recent withdrawals from Ivory Coast last year and Tanzania in January, marking a broader retrenchment from several African markets. The moves are not simply a lack of demand; they reflect a complex balance between affordable fares for passengers, viable earnings for drivers and commissions that sustain the platform.
In Nigeria, President Bola Tinubu’s economic reforms – notably the removal of the fuel subsidy and changes to the naira’s exchange‑rate regime – have increased operating costs for drivers. Fuel, imported spare parts and vehicle maintenance have risen, squeezing driver incomes while fares remain under pressure. A March strike by drivers of Uber, Bolt and InDrive in Lagos and Ogun highlighted the unsustainability of current earnings.
Farouk Adebayo, an Uber driver who joined the strike, told Al Jazeera that the post‑subsidy economy made it hard to profit from driving. Ayoade Ibrahim, co‑founder of the Amalgamated Union of App‑Based Transporters of Nigeria, explained that drivers face a 25–30 % commission, fuel, maintenance, insurance and occasional fines, leaving barely enough to cover basic expenses. Many have migrated to competitors such as Bolt, InDrive, Rida and LagRide, or shifted to cash‑only trips to survive.
In Uganda, the Smart Online Drivers Association had already challenged Uber’s 25 % commission in 2019, citing exploitative practices. Competitors Bolt and SafeBoda were established in Kampala before Uber’s entry in 2016, and smaller platforms like Faras, Yango and Tinka have since increased competition. Uber’s exit follows a similar pattern of rising costs and driver dissatisfaction.
Uber has not said the Nigerian or Ugandan markets were unprofitable, nor offered a detailed country‑by‑country rationale. It said it is focusing investment on markets where it can provide earning opportunities for drivers at scale and where riders can travel seamlessly, reaffirming its commitment to sub‑Saharan Africa.
Kenya offers a contrasting example: after the government capped ride‑hailing commissions at 18 % in 2022, Uber reduced its own commission from 25 % to 18 % and stayed. That shows the company can adapt where it sees long‑term value. In markets where the balance of fares, driver earnings and commissions breaks down, leaving becomes a viable option.
With Nigeria’s 237 million population and Uganda’s growing urban market, Uber’s selective approach signals a shift toward markets where the economics can work. The company remains open to future opportunities across Africa, but its strategy now hinges on whether a market can sustain a viable model for all parties involved.
