LAGOS (TechGenez) – Uber Technologies has decided to close its operations in Nigeria and Uganda with immediate effect, marking a significant retreat from Africa’s two largest markets.
The global ride-hailing and delivery company made the move after a detailed review of its business performance in both countries. Uber first entered Nigeria in 2014 and Uganda in 2016. The closures leave Uber operating only in Egypt, Ghana, Kenya and South Africa across the entire continent.
Reasons for the Exit
The decision was driven by a combination of challenges that have made the markets increasingly difficult for ride-hailing operators. In Nigeria, drivers have repeatedly complained about low fares relative to rising fuel costs and high commission rates, along with growing competition from rival apps.
Uganda has faced similar pressures, with high operating costs, low fares and strong competition from local and international platforms.
The announcement comes at the same time as Uber is carrying out one of its largest rounds of global layoffs in recent years, reducing its workforce by approximately 3,300 employees or 10% to create a leaner, more agile organisation.
Impact on Commuters
In Nigeria’s busy commercial city of Lagos, Uber had introduced a boat service in 2019 to help commuters avoid the city’s notorious traffic jams. The company also launched services in Uganda’s capital Kampala.
Local media in both countries said the news will have a major impact on daily commuters, many of whom are likely to turn to alternative apps such as Bolt, Faras and SafeBoda.
Support for Affected Users
Uber has said it remains committed to sub-Saharan Africa and will continue to explore growth opportunities in the region. The company has pledged to support employees and drivers affected by the closures and stated that its help centre will remain open until 23 September to assist with any outstanding matters.
Strategic Focus
The exit forms part of Uber’s broader effort to concentrate its resources on markets where it can compete most effectively. The company has previously withdrawn from Ivory Coast and Tanzania, leaving a more focused presence in Africa.
As Uber invests heavily in autonomous mobility and urban mobility solutions, the company believes its current approach will allow it to allocate resources more strategically.
Conclusion
Uber’s decision to exit Nigeria and Uganda is a significant development for Africa’s ride-hailing sector. The pullback highlights the challenges of operating in some of the world’s most competitive but rapidly growing markets, while also showing that even the largest global platforms must adapt quickly to changing conditions and shifting priorities.
