Global ride-hailing company Uber is ending its services in Nigeria and Uganda, effective immediately, following a review of its operations in both countries.
The company said the decision was difficult but necessary as it reassessed its business across the two markets.
Uber entered Nigeria in 2014 before expanding into Uganda in 2016.
In Nigeria, drivers have repeatedly raised concerns about low fares, expensive fuel and high commissions deducted from their earnings.
The company has also faced growing competition from other transport-hailing platforms.
The announcement coincides with plans by Uber to reduce its worldwide workforce by 10%, according to chief executive Dara Khosrowshahi.
Uber’s withdrawal from Nigeria and Uganda follows its recent exits from Ivory Coast and Tanzania.
The company will now maintain operations in only four African countries, Egypt, Ghana, Kenya and South Africa.
Uber said the latest move was restricted to Nigeria and Uganda and would not affect its activities elsewhere on the continent.
The company has operated in Nigeria for 12 years and introduced additional services during that period.
In 2019, it launched a water transport service in Lagos to provide commuters with an alternative to the city’s severe road congestion.
Nigeria’s ride-hailing sector has become increasingly difficult, with drivers from various platforms organising protests and work stoppages over fuel expenses, earnings and employment conditions.
The situation worsened after President Bola Tinubu removed the country’s long-standing petrol subsidy following his election in 2023, triggering a sharp increase in living expenses.
Further increases in petrol costs this year have added to the financial burden on motorists.
In Uganda, the departure is expected to significantly affect commuters in Kampala, although existing services such as Bolt, Faras and SafeBoda are expected to compete for Uber’s former customers.
Uber said it would provide assistance to workers and drivers affected by the withdrawal.
Its customer support centre will remain available in both countries until 23 September to resolve pending matters.
By: Magdalene Agyeiwaa Sarpong