Uber has shut down its operations in Nigeria and Uganda with immediate effect, further reducing the ride-hailing company’s footprint in Africa amid growing operating costs, pressure from drivers and intensifying competition.
The US-based ride-hailing company said it reached the decision after a review of its business in the two markets.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber said in a statement.
The company added that it remained committed to sub-Saharan Africa, where it continued to see “strong growth and opportunity.”
Uber entered Nigeria in 2014 and Uganda in 2016. During its 12 years in Nigeria, the company expanded beyond conventional ride-hailing, including launching a boat service in Lagos in 2019 to provide commuters with an alternative to the city’s severe traffic congestion.
The exit comes as ride-hailing operators face mounting challenges across Nigeria, including higher fuel and vehicle operating costs, pressure over fares and disputes over driver commissions.
Nigerian drivers have repeatedly complained that fares on ride-hailing platforms have not kept pace with rising operating expenses, while rival services including Bolt, inDrive and local platforms have increased competition.
The removal of Nigeria’s fuel subsidy in 2023 contributed to a sharp increase in transportation and living costs, adding pressure on drivers and passengers.
Uber has also withdrawn from other African markets in recent years, including Ivory Coast and Tanzania. Its latest exits leave Egypt, Ghana, Kenya and South Africa as the only African markets where Uber currently operates.
In Uganda, the company’s departure is expected to reshape the ride-hailing market in Kampala, where competing platforms such as Bolt, Faras and SafeBoda are positioned to capture customers and drivers affected by the exit.
Uber explained it would support employees and drivers affected by the closures. Its help centres in Nigeria and Uganda will remain available until September 23 to address outstanding issues.
The exits come as Uber simultaneously undertakes a broader global restructuring, with Chief Executive Dara Khosrowshahi announcing plans to reduce the company’s global workforce by 10%.
The withdrawal from two African markets highlights the growing challenges facing international ride-hailing companies as they balance expansion opportunities with rising costs, regulatory pressures and increasingly competitive local markets.
