Uber has announced the immediate closure of its operations in Nigeria and Uganda, citing a difficult business review. The company now operates in only four African countries.
Uber has announced the immediate closure of its operations in Nigeria and Uganda, citing a 'difficult decision' following a comprehensive review of its business. The company began its operations in Nigeria in 2014 and expanded to Uganda two years later. This move marks another step in Uber's global restructuring, which includes the recent withdrawal from Ivory Coast and Tanzania. Uber now operates in only four African countries: Egypt, Ghana, Kenya, and South Africa. The company emphasized that this decision affects only Nigeria and Uganda and does not impact its presence in other parts of the continent.
Uber drivers in Nigeria have raised concerns about low app prices, which they say do not reflect the rising cost of fuel, and high commission charges. These challenges have been compounded by competition from other ride-hailing platforms. The removal of Nigeria's fuel subsidy in 2023, following President Bola Tinubu's election, contributed to increased living costs. Additionally, recent global events, such as the US's conflict with Iran, have further driven up petrol prices. In Uganda, local media noted that Uber's exit may create a void in the capital, Kampala, but other apps like Faras, Bolt, and SafeBoda are expected to fill the gap.
Why it matters
The rising cost of fuel and high commission rates limit the viability of Uber's operations in Nigeria.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch whether Nigeria's transport authorities address driver complaints about pricing and commission rates.
This section reflects Dumpling editorial interpretation and is provided for context only.