Uber announced that it will cease all services in Nigeria and Uganda effective immediately, after a comprehensive review of its business in the two markets.
Decision After 12 Years in Nigeria
Uber began operating in Nigeria in 2014. Over the past decade it expanded its offerings, even launching a boat service in Lagos in 2019 to help commuters avoid the city’s notorious traffic jams.
Challenges in the West African Market
Drivers in Nigeria have long complained that the app’s fares are too low compared to rising fuel costs, while commission charges are considered high. The company has also faced pressure from rival platforms such as Bolt, inDrive and several local operators. The removal of Nigeria’s fuel subsidy in 2023 and subsequent price hikes have further strained the market.
Uganda’s Exit and Local Impact
Uber entered Uganda in 2016. The Daily Monitor reported that commuters in Kampala will feel the loss, but other taxi apps like Faras, Bolt and SafeBoda are expected to fill the void.
Global Context
The announcement comes as Uber’s chief executive, Dara Khosrowshahi, revealed a 10% cut in its global workforce. The company has already withdrawn from Ivory Coast and Tanzania in the past year. Uber’s statement to the BBC said the decision is limited to Nigeria and Uganda and does not affect operations in the rest of the continent, where it continues to see “strong growth and opportunity.”
Support for Affected Employees and Drivers
Uber pledged to assist employees and drivers impacted by the closures. Its help centre will remain open in Nigeria and Uganda until 23 September to address outstanding issues.
Source: MyJoyOnline
