Abuja, Nigeria — Uber announced on September 2 that it is suspending its services in Nigeria and Uganda, marking another contraction in the ride-hailing giant’s footprint across Africa. The decision ends approximately a decade-long presence in both nations and follows a similar strategic retreat from Tanzania earlier this year and Ivory Coast in 2025.
In its official statement, Uber described the move as part of a “thorough review” of its business priorities, noting that the exit was limited to these specific countries. Reuters reported that the company did not provide detailed financial justifications for the pullout, but industry observers note the closures reflect a broader struggle to maintain viable economics for passengers, drivers, and platforms alike.
Nigeria, Africa’s most populous nation with 237 million residents, presents a particularly stark case. President Bola Tinubu’s recent economic reforms, which included the removal of fuel subsidies and adjustments to the naira’s exchange rate, have drastically increased operational costs. For drivers, this has translated into soaring prices for petrol, imported vehicle spare parts, and general maintenance.
The financial pressure culminated in March when drivers for Uber, Bolt, and inDrive staged a three-day strike in Lagos and Ogun states. They protested what they termed unsustainable fares and deteriorating working conditions.
Farouk Adebayo, an Uber driver who participated in the Lagos strike, told Al Jazeera that profitability had become nearly impossible. “Since the government removed the subsidy, I have really been struggling with making a profit with Uber the way I used to,” Adebayo said. “When I add the cost of maintaining my car and everything else, the profit I was making from driving with Uber was not worth it. “
High platform commissions further exacerbate the issue. Ayoade Ibrahim, co-founder and general secretary of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), highlighted that drivers face a compounding series of deductions.
“The platform takes 25–30 percent commission. Then fuel. Then maintenance. Then insurance. Then the occasional fine. What remains is barely enough to feed a family, let alone save for the next repair,” Ibrahim explained. He noted that many drivers have migrated to competitors or resorted to cash-only trips offline to survive.
Competition in Nigeria is fierce, with Bolt, inDrive, and local platforms such as Rida and LagRide vying for market share. inDrive, which charges a lower service fee of approximately 10 percent and allows passengers and drivers to negotiate fares directly, has attracted drivers dissatisfied with Uber’s rates. This mobility of drivers undermines Uber’s leverage, as a large user base does not necessarily guarantee sustainable margins when operating costs rise.
Uganda faces comparable challenges, albeit with different market dynamics. Uber entered Uganda in 2016 and later launched UberBODA, its motorcycle taxi service. However, longstanding rivals Bolt and SafeBoda, along with smaller platforms like Faras, Yango, and Tinka, have kept competition intense.
As far back as 2019, the Smart Online Drivers Association petitioned the Ugandan parliament over exploitative commission structures, specifically targeting Uber’s 25 percent cut while fares remained low. Like Nigeria, the core issue in Uganda is not a lack of demand but the difficulty of balancing affordable fares for riders with sufficient income for drivers.
Despite these exits, Uber maintains it remains committed to sub-Saharan Africa. The company emphasized that it is focusing investment on markets where it can scale driver earnings and ensure seamless rider experiences. Kenya serves as a counter-example to the Nigerian and Ugandan situations. Following driver protests in 2022, the Kenyan government capped platform commissions at 18 percent. Uber complied, reducing its fee from 25 percent to meet the regulatory limit, thereby sustaining its operations.
This contrast suggests Uber employs a selective strategy: where long-term value is evident and regulatory or competitive adjustments can restore balance, the company stays; where economics no longer justify investment, it exits.
Ayoade Ibrahim summarized the fundamental flaw in Uber’s model for volatile economies. “Uber’s model was built on independent contractors bearing almost all cash costs. In markets with stable fuel prices and accessible vehicle finance, that can work. In Nigeria, where the cost of a full tank can swing tens of thousands of naira in a month, it does not. Drivers become the shock absorbers for the macroeconomy.”
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