Uber ceases operations in Nigeria and Uganda

Uber has announced the closure of its operations in Nigeria and Uganda effective immediately. The company stated that this decision follows a thorough review of its business. Uber began operating in Nigeria in 2014 and in Uganda in 2016. Drivers in Nigeria have expressed concerns about low prices on the app relative to rising fuel costs and high commission charges, while the company has faced competition from rival platforms. This announcement coincides with Uber's CEO, Dara Khosrowshahi, stating that the company would reduce its global workforce by 10%. Over the past year, Uber has also exited markets in Ivory Coast and Tanzania, leaving Egypt, Ghana, Kenya, and South Africa as its remaining markets in Africa. Uber clarified that this decision is specific to Nigeria and Uganda and does not affect its operations in other African countries, emphasizing its commitment to sub-Saharan Africa. During its 12 years in Nigeria, Uber expanded its services, including launching a boat service in Lagos in 2019 to help alleviate traffic congestion. The Nigerian market has become increasingly challenging, with protests from drivers over operating costs and working conditions. The removal of Nigeria's fuel subsidy in 2023 has contributed to rising living costs. In Uganda, Uber's departure is expected to impact commuters in Kampala, but other taxi apps like Faras, Bolt, and SafeBoda are likely to fill the gap. Uber has committed to supporting affected employees and drivers, with its help center remaining open until September 23 to address outstanding issues.