Uber has officially ceased its operations in Nigeria and Uganda, marking the end of a 12-year run in Nigeria and 10 years in Uganda. The global ride-hailing giant described the shutdown as a tough, strategic move following a comprehensive review of its business. The closures coincide with Uber CEO Dara Khosrowshahi’s announcement to reduce the company’s global workforce by 10%. Despite pulling out from these two significant African markets, Uber affirmed that it remains committed to the broader sub-Saharan African region, where it continues to see growth, maintaining operations in countries like Egypt, Ghana, Kenya, and South Africa.

The decision to exit Nigeria and Uganda comes amid persistent challenges in the local ride-hailing sectors. Nigerian drivers have voiced frustrations over shrinking fares amid rising fuel prices, following the removal of the country’s fuel subsidy by President Bola Tinubu's administration in 2023 and increases triggered by geopolitical tensions such as the U.S.-Iran conflict. Drivers have also protested Uber's commission fees and difficult working conditions, reflecting broader economic pressures and escalating operational costs. Additionally, Uber faced fierce competition from other international and local platforms like Bolt and inDrive, which further squeezed its market share.

Beyond rideshare services, Uber had tried diversifying its offerings in Nigeria, including launching a boat service in Lagos in 2019 to help commuters navigate the city's notorious traffic. However, these efforts ultimately couldn’t counterbalance the multiple challenges Uber faced within these markets. The company is not new to scaling back in Africa, having exited Ivory Coast and Tanzania in the past year, signaling a trend toward narrowing its footprint on the continent.

Uber has committed to supporting the employees and drivers affected by the shutdowns, offering assistance through dedicated help centers in Nigeria and Uganda available through September 23. Though Uber is scaling back in several African countries, the company insists this move is isolated and reaffirms its investment in Africa’s growing mobility opportunities beyond these exits. The shift illustrates the complexities of operating in dynamic and economically volatile regions despite the continent’s long-term promise for ride-sharing and tech companies.