Uber exits Nigeria and Uganda; Ghana among four African markets still operating

Ride-hailing platform Uber has announced the closure of its operations in Nigeria and Uganda, marking a significant retreat from two major African markets. The decision takes effect immediately, according to a statement from the company to the BBC. The move comes as Uber's global leadership implements a broader 10% workforce reduction across the organisation.

Uber first entered Nigeria in 2014 and expanded to Uganda two years later, establishing itself as a major player in both nations' transportation sectors. However, mounting operational challenges in these markets have forced the company's hand. The closure leaves Ghana as one of only four African countries—alongside Egypt, Kenya, and South Africa—where Uber continues to operate.

Why Nigeria and Uganda became unsustainable

The Nigerian market has proven increasingly difficult for ride-hailing services. Driver complaints have mounted over the past several years regarding low fares relative to rising fuel costs and high commission charges levied by the platform. The removal of Nigeria's fuel subsidy following President Bola Tinubu's election in 2023 significantly increased operating costs for drivers. Further pressures emerged when petrol prices climbed again this year amid international geopolitical tensions.

These economic headwinds have sparked repeated industrial actions and protests from drivers across multiple ride-hailing platforms operating in Nigeria. Beyond internal pressures, Uber has faced intense competition from both international rivals—including Bolt and inDrive—and numerous local operators who have gained market share.

Uganda's challenge appears less acute but equally challenging, with local alternatives positioned to fill the gap left by Uber's departure.

What this means for Ghana and West Africa

Ghana's inclusion among Uber's remaining four African markets signals the company's confidence in the local operating environment. Unlike Nigeria and Uganda, Ghana has not faced the same level of driver unrest or macro-economic shocks that have destabilised the ride-hailing sector elsewhere on the continent. The country's relatively stable fuel pricing and business climate appear more conducive to Uber's model.

The broader retreat from Africa, however, reflects challenges facing the gig economy across the continent. Over the past year, Uber has also exited Ivory Coast and Tanzania, showing a pattern of consolidation in markets where profitability and operational stability remain difficult to achieve. Despite these withdrawals, Uber has publicly maintained its commitment to sub-Saharan Africa, emphasising that the latest closures are limited to these two markets.

Supporting those affected

Uber has committed to assisting employees and drivers impacted by the closure. The company said its help centre would remain operational in Nigeria and Uganda until 23 September 2024 to resolve outstanding issues and provide support.

In Lagos, where Uber had operated innovative services including a water-based taxi option to navigate the city's infamous traffic congestion, commuters and drivers will need to transition to alternative platforms. Local alternatives such as Bolt, SafeBoda, and various regional operators are expected to absorb much of the demand, though service continuity may face temporary disruptions.

For Ghana, the stability of Uber's local operations remains important to the country's transport-tech ecosystem and the thousands of drivers and consumers who rely on the platform.