Uber Retreats as African Ride-Hailing Economics Worsen

Uber is withdrawing from Nigeria and Uganda after 12 years and roughly a decade of operations, respectively, reflecting a broader retreat from selected African markets. The company also left Ivory Coast in 2025 and Tanzania in January, although it says these decisions are limited to particular countries and that it remains committed to sub-Saharan Africa. The article argues that the exits are not primarily caused by a lack of passengers. Instead, they reflect the difficulty of making ride-hailing financially viable for all three sides of the market: riders need affordable fares, drivers need sufficient income to cover operating costs, and platforms need commissions large enough to sustain their services. Nigeria illustrates the problem most clearly. The removal of the fuel subsidy and changes to the naira exchange-rate regime have increased the costs of petrol, imported spare parts, maintenance and insurance. At the same time, fares remain constrained, reducing drivers’ profits. The pressure prompted Uber, Bolt and inDrive drivers to strike in Lagos and Ogun in March over low fares and poor working conditions. Drivers report that Uber’s 25–30 percent commission, combined with fuel and vehicle expenses, leaves too little income. Some have switched to rival platforms, negotiated cash trips offline or left the industry. Competition from Bolt, inDrive and local services such as Rida and LagRide has therefore made it easier for drivers and passengers to move elsewhere. Uganda faces a similar imbalance. Drivers have long criticized Uber’s commissions, while Bolt, SafeBoda and smaller platforms compete in Kampala. Kenya demonstrates that withdrawal is not inevitable: after the government capped commissions at 18 percent, Uber reduced its rate from 25 percent and stayed. Ultimately, Uber appears to be adopting a more selective strategy, remaining in markets where scale and long-term returns justify adapting its model. The exits show how drivers are increasingly absorbing the effects of inflation, currency instability and rising operating costs.

Uber has abruptly ended its ride-hailing operations in Nigeria and Uganda, leaving drivers and passengers uncertain about their economic and transportation options. The company, which spent more than a decade building a presence in Nigeria, said the departures were effective immediately but did not provide a detailed explanation. It now operates in only Egypt, Ghana, Kenya and South Africa, after also leaving Ivory Coast and Tanzania during the past year and reducing its global workforce by 10%. Uber said it would support drivers, riders and local employees during the transition, without explaining what that support would involve. The article attributes Uber’s difficulties to intense competition from platforms such as Bolt, inDrive and SafeBoda, as well as worsening economic conditions. Drivers face rising fuel, maintenance and insurance costs, inflation and currency depreciation, while Uber continues to take roughly 20%-25% of each fare as commission. Nigerian drivers Abbas Olamide and Samuel Olatunji said the commission structure and operating expenses had already made the work increasingly unprofitable. Many drivers may now have to use competing apps, negotiate fares independently or leave ride-hailing altogether. Analyst Ikemesit Effiong says Uber’s dollar-linked costs conflict with driver earnings in the weakening Nigerian naira. Higher fares are becoming unaffordable for passengers, while keeping prices low reduces drivers’ real income and leaves platforms with thin margins. Although Nigeria’s ride-hailing market is estimated to be worth about $450 million annually, its economics remain difficult. Uber’s withdrawal may also raise transport costs and reduce mobility for passengers, while creating uncertainty about the company’s future in its remaining African markets. The article notes that competition between ride-hailing services and traditional taxi operators has sometimes led to violence, particularly in South Africa. For many drivers, the end of their relationship with Uber could mean the end of their livelihood in the sector.

Uber has withdrawn from Nigeria and Uganda, ending its operations in both countries on September 2, 2026. The departures mark the end of a 12-year presence in Nigeria and approximately a decade in Uganda, although Uber said the decision does not affect its remaining operations in sub-Saharan Africa. The company cited a review of its business priorities and maintained that the wider African region still offers strong growth opportunities. The article explains that ride-hailing economics have become increasingly difficult in both markets. In Nigeria, drivers have faced rising fuel prices, more expensive imported spare parts and vehicle maintenance, while fares remain low and platform commissions remain a source of dissatisfaction. The removal of Nigeria’s fuel subsidy in 2023 and subsequent fuel-price increases intensified these pressures. Drivers for Uber, Bolt and inDrive staged a three-day strike in Lagos and Ogun in March, describing fare levels and working conditions as unsustainable. Competition has also weakened Uber’s position. Nigerian drivers and passengers can choose among Bolt, inDrive, Rida and LagRide, while inDrive’s negotiable-fare model and relatively low service fee provide an attractive alternative. Uganda faced similar profitability problems, particularly over Uber’s reported 25% commission. Kampala’s market included Bolt, SafeBoda, Faras, Yango and Tinka, giving drivers and passengers several alternatives. Uber has previously left Ivory Coast and Tanzania. Its remaining African markets are Egypt, Ghana, Kenya and South Africa. The exits coincide with a global restructuring that includes a 10% workforce reduction announced by CEO Dara Khosrowshahi. Overall, the article argues that African ride-hailing platforms must balance affordable fares, adequate driver earnings and sustainable commissions, a challenge that is making the market increasingly selective and difficult for operators.