Uber Shuts Down Operations in Two Key African Markets
The ride-hailing giant has officially ceased operations in both Nigeria and Uganda, marking a significant shift in its African presence. Users reported being unable to book rides through the app as of Wednesday, with some receiving direct notifications about the closure.
What Happened?
Uber arrived in Lagos in 2014 and Kampala in 2016 as part of its expansion across Africa. However, the company has faced challenges in these markets, including:
- Driver protests over earnings and commission rates
- Rising fuel costs and vehicle maintenance expenses
- Increased competition from local ride-hailing services
- Regulatory hurdles, such as restrictions on airport pickups
The exits coincide with Uber’s announcement of global workforce reductions aimed at focusing on core businesses like ride-sharing, delivery, and autonomous vehicles.
Implications for the African Market
Uber’s departure follows similar moves in other African countries, including Côte d’Ivoire, Tanzania, and South Africa. While the company still operates in markets like Kenya, Ghana, and Egypt, these exits suggest a more selective approach to its African investments.
For consumers, this means fewer ride-hailing options in Nigeria and Uganda. For drivers, it represents lost income opportunities and increased competition for limited rides from remaining platforms.
Regulatory Wins Elsewhere
Meanwhile, Uber and Bolt are celebrating a regulatory victory in Kenya where a court has declared parts of the National Transport and Safety Authority’s regulations unconstitutional—including a commission cap that would have limited their earnings.