Uber shuts down operations in Nigeria and Uganda

Uber has announced it is closing its operations in Nigeria and the East African nation of Uganda with immediate effect

The global ride-hailing giant said it had come to the “difficult decision” after a thorough review of its business. It began operating in Nigeria in 2014 and in Uganda two years later.

Uber taxi drivers in Nigeria have long complained that prices on the app are too low, given the rising cost of fuel, and that commission charges are too high. The company has also faced pressure from rival platforms.

The announcement came as Uber’s chief executive, Dara Khosrowshahi, said the company was cutting its global workforce by 10% which translates to cutting over 3,000 jobs globally.

Over the last year, Uber has also pulled out of Cote d’Ivoire and Tanzania. The latest announcement means Egypt, Ghana, Kenya and South Africa are the only African countries in which the firm now operates.

This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber said in a statement

Over its 12 years operation in Nigeria, Uber had expanded its services. In the commercial hub of Lagos, it launched a boat service in 2019 in an effort to help commuters bypass the city’s traffic problem.

Other ride-hailing taxi apps have launched operation in Nigeria over the last decade; including international competitors such as Bolt and inDrive, as well as a number of local operators.

But the Nigerian market has become increasingly challenging for them all, with drivers staging protests and industrial action in recent years over rising operating costs, low fares and working conditions.

The removal of Nigeria’s fuel subsidy after President Bola Tinubu’s election in 2023 saw the cost of living rise. The subsidy had kept down the price of petroleum products low for decades.

This year, motorists have been hit again by the rise in petrol prices following the US’s war with Iran.

Uganda’s Daily Monitor newspaper said Uber’s departure would mean a major change for commuters in the capital, Kampala. But it said the void was likely to be filled by other taxi apps such as Faras, Bolt and SafeBoda.

Uber pledged to support employees and drivers affected by the decision and said its help centre would remain open for those in Nigeria and Uganda until 23 September to deal with outstanding issues.