The Changing Landscape of African Mobility

After years of expansion across the continent, Uber is significantly scaling back its operations in Africa. Recent announcements of withdrawals from Nigeria and Uganda follow earlier exits from Tanzania and Côte d’Ivoire, leaving the company with a presence in only four countries: Egypt, Ghana, Kenya, and South Africa.

This retreat marks a turning point for ride-hailing services in one of the world’s fastest-urbanizing regions. While Uber once seemed poised to dominate urban mobility across Africa, its exit raises questions about the sustainability of current business models in these markets.

The fundamental challenge for Uber is finding profitability within price points that are both affordable to low-income consumers and sustainable for drivers. The company has struggled to balance this equation amid rising fuel costs - exacerbated by factors like subsidy removals and global supply disruptions - which have pushed fares higher while simultaneously shrinking the addressable market as incomes stagnate or decline.

Competitive Pressures and Market Dynamics

Beyond macroeconomic challenges, Uber faced growing competition from local rivals who offered more flexible commission structures. Bolt, for example, typically charges drivers 15-20% compared to Uber’s standard 25%, creating an incentive for drivers to shift platforms.

As market insights firm Sensor Tower reported, Uber’s active users in Nigeria declined to 500,000 by December 2025 from a peak of over 3.3 million for Bolt - a clear indicator that the company had already lost significant ground before its final exit.

While competitors face similar challenges with rising costs, their willingness to adapt pricing and commission structures appears to be helping them navigate the current environment more effectively than Uber could in these markets.