Uber Retreats as African Ride-Hailing Economics Tighten

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 operations in Nigeria and Uganda, leaving drivers, riders, and local employees uncertain about their futures. The company, which had operated in Nigeria for more than a decade, said the withdrawal from both markets was immediate but insisted that its remaining African operations in Egypt, Ghana, Kenya, and South Africa would continue. The exits follow Uber’s departures from Ivory Coast and Tanzania and a 10% reduction in its global workforce. The article explains that ride-hailing companies face difficult economics across Africa. Uber competes with Bolt, inDrive, SafeBoda, and traditional taxi services, while operating costs have risen sharply because of fuel-price increases, inflation, vehicle maintenance, and currency instability. Drivers say Uber’s commission of approximately 20% to 25% of each fare has become unsustainable, particularly as fares fail to keep pace with expenses and declining consumer purchasing power. Nigerian drivers Abbas Olamide and Samuel Olatunji describe how commissions, airport fees, parking costs, and reduced earnings have affected their livelihoods. Many drivers are now expected to use several competing platforms to maintain a steady income, although they anticipate taking home less money. Drivers have previously protested over low fares, fuel costs, and working conditions, but say their concerns have largely been ignored. Analyst Ikemesit Effiong argues that Uber’s costs are effectively linked to the US dollar while driver earnings are collected in the weakening Nigerian naira. This imbalance leaves the company with thin profit margins and encourages drivers to use multiple apps, negotiate fares off-platform, or leave the sector. The withdrawals may also reduce transport options for riders, increase prices, and affect perceptions of safety and reliability. The article raises wider questions about whether Uber will leave other African markets, change its pricing model, or intensify competition with traditional taxi operators, some of whom have responded violently to ride-hailing services.

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.