Uber Exits Two African Markets Amid Rising Costs and Global Workforce Cuts

Uber has announced the immediate closure of its ride-hailing operations in Nigeria and Uganda following a review of its business activities. The company described the move as a “difficult decision,” ending its operations in Nigeria after 12 years and in Uganda after a decade. Uber said the decision is limited to the two markets and does not affect its remaining operations across Africa.

The company has faced growing challenges in Nigeria, where drivers have complained about low fares amid rising fuel and operating costs, as well as high commission charges. The removal of Nigeria’s fuel subsidy in 2023 significantly increased living costs and transportation expenses, while competition from platforms including Bolt, inDrive and local ride-hailing services has added further pressure.

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Uber had expanded its services in Nigeria over the years, including launching a boat service in Lagos in 2019 to help commuters avoid the city’s severe traffic congestion. However, the broader ride-hailing sector has struggled with rising costs and driver protests over fares and working conditions. Uber has also recently withdrawn from Ivory Coast and Tanzania, leaving Egypt, Ghana, Kenya and South Africa as its remaining African markets.

The latest exit comes as Uber CEO Dara Khosrowshahi announced plans to cut the company’s global workforce by 10%. In Uganda, the departure is expected to significantly affect commuters in Kampala, although competing services such as Faras, Bolt and SafeBoda could fill the gap. Uber said it would support affected employees and drivers, while its help centres in Nigeria and Uganda will remain open until September 23 to address outstanding issues.

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