Uber withdraws from Nigeria and Uganda as African ride-hailing costs surge
Uber has ended its operations in Nigeria and Uganda, joining earlier exits from Ivory Coast and Tanzania as operating expenses rise across Africa.
Uber announced the termination of its services in Nigeria and Uganda on September 2 after a comprehensive assessment of its business focus, adding to exits from Ivory Coast last year and Tanzania earlier this year. In Nigeria, the removal of fuel subsidies and adjustments to the naira exchange rate have driven up fuel, spare-part and maintenance costs, squeezing driver profits while fares remain low, leading to a three-day strike in Lagos and Ogun.
Drivers report that Uber’s 25-30 percent commission, combined with rising expenses, leaves little margin for household needs. Competitors such as Bolt, inDrive, Rida and LagRide offer lower fees or negotiated fares, drawing drivers away. Uganda faced similar complaints, with the Smart Online Drivers Association challenging Uber’s 25 percent cut in 2019, while local rivals like SafeBoda, Faras and Yango dominate Kampala. Uber has not confirmed unprofitability but says it will concentrate investment on markets where driver earnings and rider affordability align, noting Kenya’s example where commission caps were adjusted rather than exiting.
Why it matters
The exits show how rising costs and commission structures can destabilize ride-hailing models in emerging economies.
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