Uber Decides Nigeria and Uganda Are No Longer Worth the Traffic Jams
Uber bids farewell to Nigeria and Uganda, citing 'difficult decision' - drivers cite impossible economics - while the company trims 10% of its workforce globally.
Uber, the ride-hailing behemoth that has ferried countless Nigerians through Lagos's legendary gridlock, has abruptly announced it is shutting down operations in Nigeria and Uganda with immediate effect. The company cited a 'difficult decision' after a 'thorough review' of its business - a review that apparently concluded that navigating Africa's most populous country and its East African neighbor was no longer worth the hassle.
Uber first rolled into Nigeria in 2014 and Uganda two years later, but its drivers have long grumbled that the app's prices were too low given the soaring cost of fuel, while commission charges remained stubbornly high. The company also faced stiff competition from rivals like Bolt, inDrive, and a slew of local startups, making the market increasingly crowded and, apparently, less profitable.
The announcement coincided with CEO Dara Khosrowshahi's revelation that Uber would be cutting its global workforce by 10%, slashing over 3,000 jobs in a major restructuring. This latest retreat follows Uber's exits from Ivory Coast and Tanzania over the past year, leaving Egypt, Ghana, Kenya, and South Africa as its only remaining African outposts.
'This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,' Uber's statement to the BBC read, in the kind of reassurance that usually precedes a wave of 'actually, we're also leaving' announcements. 'We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.'
In its 12 years in Nigeria, Uber did more than just drive people around - it launched a boat service in Lagos in 2019 to help commuters bypass the city's notorious congestion, which is saying something when your solution to traffic is 'take a boat.'
The Nigerian market had become a thorny one for all ride-hailing apps, with drivers staging protests and industrial action over rising operating costs, low fares, and working conditions. The removal of fuel subsidies after President Bola Tinubu's election in 2023 sent living costs soaring, and this year's petrol price hikes following the US's war with Iran added more fuel to the fire - literally.
Uganda's Daily Monitor noted that Uber's departure would be a major change for commuters in Kampala, but the void is likely to be filled by other apps like Faras, Bolt, and SafeBoda. Uber, for its part, pledged to support affected employees and drivers, and its help centre will remain open for those in Nigeria and Uganda until 23 September to handle outstanding issues - because nothing says 'we care' like a two-month deadline to resolve your problems.
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