Ride hailing giant, Uber has announced the immediate closure of its operations in Uganda and Nigeria, ending more than a decade of business in two of Africa’s key transport markets as the company undertakes global restructuring.
The move marks another retreat from the continent for the San Francisco based company, which has also exited Ivory Coast and Tanzania over the past year. Its African footprint is now limited to Egypt, Ghana, Kenya and South Africa.
Uber said the decision followed a comprehensive review of its business and was confined to the two affected markets.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” the company said.
The company added,“We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.”
The company entered Nigeria in 2014 before expanding into Uganda in 2016, introducing app based ride hailing services that transformed urban transport, particularly in Lagos and Kampala.
In Uganda, Uber became one of the pioneers of digital taxi services, competing with platforms such as SafeBoda, Bolt and Faras.
The withdrawal comes as Uber implements wider cost cutting measures worldwide. Chief Executive Dara Khosrowshahi recently announced that the company would reduce its global workforce by 10 percent as part of efforts to simplify operations and improve efficiency.
Nigeria’s market had become increasingly difficult for ride hailing companies, with drivers repeatedly protesting over low fares, high commission charges and rising operating costs. Economic pressures intensified after the removal of fuel subsidies in 2023 and further increases in petrol prices, squeezing both drivers and passengers.
Despite those challenges, Uber had expanded beyond traditional taxi services in Nigeria, including launching a boat service in Lagos in 2019 to help commuters navigate the city’s notorious traffic congestion.
Uber has pledged support for employees and drivers affected by the closures, saying its help centre will remain operational in Uganda and Nigeria until September 23 to assist with outstanding issues and account related matters.
