2 months ago
AfroTech Sep 3, 2026

Uber Has Shut Down Operations In Nigeria and Uganda — Here's Why

Uber has officially ceased its operations in Nigeria and Uganda, marking the end of over a decade of presence in these key African markets. The company began operating in Nigeria in 2014 and expanded to Uganda in 2016. This decision was described as challenging by Uber and followed an extensive review of its business strategy amid a global workforce reduction of 10% announced by CEO Dara Khosrowshahi. Despite this exit, Uber reiterated that it remains committed to growth in other African countries such as Egypt, Ghana, Kenya, and South Africa.

The shutdown in Nigeria comes after significant difficulties faced by Uber and its drivers in the country. Many drivers raised concerns about low fares relative to rising fuel prices and high commission fees. These issues contributed to protests and strikes within Nigeria’s ride-hailing industry. The economic environment worsened following the removal of Nigeria’s long-standing fuel subsidy after President Bola Tinubu’s election in 2023, along with increased petrol prices linked to international tensions, which further squeezed drivers’ earnings.

Competition from other ride-hailing platforms in Nigeria also played a role in Uber’s decision to withdraw. Services like Bolt, inDrive, and several local competitors have been vying for market share, making profitability challenging for Uber. Over its 12-year tenure, Uber expanded its offerings beyond car rides, notably launching a boat service in Lagos in 2019 to help commuters tackle the city’s notorious traffic jams. However, these innovations were not enough to sustain its operations amid mounting operational pressures.

Uber’s retreat from Nigeria and Uganda is part of a broader contraction of its footprint across Africa. The company previously exited Ivory Coast and Tanzania in the past year, leaving Egypt, Ghana, Kenya, and South Africa as its remaining strongholds on the continent. Uber has committed to assisting employees and drivers affected by these closures with support services available in both countries until September 23, 2026, as it recalibrates its focus in Africa amidst ongoing global challenges.

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