Uber Withdraws from Nigeria and Uganda Amid Global Restructuring and Rising Costs

Uber entered the African market in 2014, beginning operations in Nigeria. The company expanded to Uganda in 2016. Uber later exited Ivory Coast and Tanzania.

1. Uber is exiting certain markets to focus on Egypt, Ghana, Kenya, and South Africa. The company stated that this consolidation follows a business review.

2. CEO Dara Khosrowshahi announced a 10% reduction in the global workforce. The company aims to streamline its operations through this decision.

3. Uber will maintain help centers in both countries until September 23, 2026. Staff will address outstanding issues for drivers and riders during the wind-down.

4. Market Consolidation: The company exited these markets to avoid further losses in regions with unsustainable operating costs. Uber stated in a company review that the move ends losses in these two markets.

1. Drivers in Nigeria frequently protest low application prices and high commission fees. These demonstrations reveal the financial strain causing current operational challenges.

2. Economic Pressure: The US-Iran war drove up petrol prices. Higher fuel costs increased operating expenses for drivers in the affected areas. The ride-hailing business model became difficult to sustain under these conditions.

3. Uber's departure leaves the market to competitors Bolt, inDrive, Faras, and SafeBoda. Local commuters who relied on Uber services now have fewer ride-hailing options.

4. Uber withdrew from the Ivory Coast and Tanzania in 2024. These departures follow the company's exit from other African markets during the same year.