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The decision took effect immediately

Uber announced that it has immediately suspended operations in the Nigeria and Uganda markets. The company said it decided to exit the two countries after a comprehensive review of its business. Uber began operating in Nigeria in 2014 and in Uganda in 2016.

The announcement came around the same time that Uber Chief Executive Dara Khosrowshahi said the company would cut 10% of its global workforce. Over the past year, the company has also ended operations in Ivory Coast and Tanzania.

Cost and competition pressures rose in Nigeria

In Nigeria, Uber drivers had long argued that fares in the app were not enough to keep up with rising fuel costs. Drivers also complained about high commission rates, while the company faced pressure from both international and local rival platforms.

In recent years, drivers in the West African country have staged protests and work stoppages over higher operating costs, low earnings and working conditions. After President Bola Tinubu took office in 2023, the removal of fuel subsidies also pushed up the cost of living. According to the source, fuel prices rose again this year after the United States went to war with Iran.

What will happen in Lagos and Kampala?

During its 12 years in Nigeria, Uber expanded its services. In Lagos, the company launched a boat service in 2019 to offer passengers an alternative to the city’s heavy traffic. Lagos, one of Africa’s largest and busiest cities, is known for its long traffic jams.

In Uganda, the company’s exit will be a significant change for passengers in the capital, Kampala, according to Daily Monitor. The report said the gap is expected to be filled by other apps such as Faras, Bolt and SafeBoda.

Where does Uber still operate in Africa?

The company said the decision only affects these two markets and will not impact its operations elsewhere on the continent. Uber also stressed that it continues to see growth and opportunity in sub-Saharan Africa.

  • Egypt
  • Ghana
  • Kenya
  • South Africa

Uber said it will provide support for employees and drivers affected by the decision. The help center for users and business partners in Nigeria and Uganda will remain open until September 23, and pending issues will be handled there.

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