Uber shuts down ride-hailing in Nigeria and Uganda with immediate effect

Uber pulls out of Nigeria and Uganda

Uber is closing its ride-hailing operations in Nigeria and Uganda with immediate effect. According to the BBC, the company described the move as a "difficult decision" made after a review of its business, and has pledged to support the employees and drivers affected.

The exit ends more than a decade in Nigeria, where Uber launched in 2014, and nearly as long in Uganda, which it entered in 2016. Egypt, Ghana, Kenya and South Africa are now the only African countries where the platform still operates.

Part of a wider retreat

The withdrawal continues a pattern. As the BBC reports, Uber has also left Ivory Coast and Tanzania within the past year, steadily reducing its footprint on the continent. In a statement, the company said the decision applied only to these two markets and did not affect its operations elsewhere in Africa, and that it remains committed to sub-Saharan Africa, where it still sees growth and opportunity.

The timing adds another layer: the BBC says the announcement came as Uber chief executive Dara Khosrowshahi revealed plans to cut the company's global workforce by 10%.

Why Nigeria became a hard market

Uber's drivers in Nigeria have long complained that fares on the app failed to keep up with rising fuel costs while commission charges stayed high. The company also faced mounting pressure from international rivals such as Bolt and inDrive, as well as a range of local ride-hailing operators.

Broader economic conditions compounded the problem. The BBC notes that Nigeria's fuel subsidy, which had kept petroleum prices low for decades, was removed after President Bola Tinubu's election in 2023, pushing up the cost of living, and that petrol prices climbed again this year following the conflict between the US and Iran. Drivers across the sector have staged protests and industrial action in recent years over fares, operating costs and working conditions.

Uber had expanded beyond cars in the market: in 2019 it launched a boat service in Lagos, one of Africa's largest and busiest cities, to help commuters avoid its chronic traffic jams.

What happens next for riders

In Uganda, the Daily Monitor newspaper reports that the departure will mark a major change for commuters in the capital, Kampala, though it expects other taxi apps — Faras, Bolt and SafeBoda — to fill the space Uber leaves behind.

Uber said its help centre will remain open for users in Nigeria and Uganda until 23 September to resolve outstanding issues.

Why it matters

Uber's departure from Africa's most populous country, coming alongside earlier exits from Ivory Coast and Tanzania, signals a broader retrenchment that coincides with global cost-cutting at the company. For riders, the short-term impact may be limited given the number of competing platforms, but for drivers it removes one source of income in markets already squeezed by high fuel prices and low fares. The closures also illustrate how ride-hailing economics that work in some regions can break down where operating costs rise sharply and competition keeps prices down — a caution for platform businesses targeting price-sensitive emerging markets.