Uber exits Nigeria and Uganda, leaving four African markets

Uber has abruptly ended its ride-hailing operations in Nigeria and Uganda, two of its largest African markets. The company cited a "difficult decision" after a thorough business review, but the underlying economics tell a familiar story: drivers squeezed by low fares and high commissions, fuel costs climbing after subsidy removal, and aggressive local and international competitors eating into market share.

The exit is part of a broader retrenchment. Uber's CEO Dara Khosrowshahi recently announced a 10% global workforce cut, and the company has already pulled out of Ivory Coast and Tanzania over the past year. That leaves Egypt, Ghana, Kenya, and South Africa as its only African footholds.

Nigeria was Uber's entry point into sub-Saharan Africa in 2014, followed by Uganda in 2016. In Lagos, Uber even launched a boat service in 2019 to bypass the city's notorious traffic. But the market turned hostile: drivers staged protests over unsustainable economics, and rivals like Bolt, inDrive, and local players chipped away at margins. The removal of Nigeria's fuel subsidy in 2023 and subsequent petrol price spikes made operating costs worse.

For Ugandan commuters in Kampala, the gap will likely be filled by existing apps like Bolt, SafeBoda, and Faras. Uber says its help centre will remain open until 23 September to handle outstanding driver and rider issues.

This is not just a story about one company retreating—it's a signal about the viability of gig-economy models in markets where infrastructure and fuel costs are volatile. The playbook of subsidizing growth and then raising commissions doesn't hold when drivers can switch platforms or protest collectively.