Why is Uber pulling out of some African markets?
Summary
Uber has stopped operating in Nigeria and Uganda due to rising costs and challenges in keeping the ride-hailing business profitable. These exits follow similar moves in other African countries, showing difficulties in balancing affordable fares for passengers and good earnings for drivers.Key Facts
- Uber ended its services in Nigeria and Uganda on September 2 after 12 years in Nigeria and about 10 years in Uganda.
- The company left Ivory Coast in 2025 and Tanzania earlier in the same year.
- Rising costs, like fuel and car maintenance, have made it harder for drivers to earn money, especially after Nigeria's government removed a fuel subsidy.
- Drivers face multiple expenses, including Uber’s 25–30% commission, fuel, repairs, insurance, and fines, leaving little money for living or saving.
- Drivers protested in Lagos and Ogun states in March, demanding better pay and working conditions.
- Competitors like Bolt and inDrive offer lower commissions and more flexible fare systems, attracting many drivers away from Uber.
- Uber’s decisions show the company is focusing on fewer markets where the business is more sustainable.
- The challenges in Uganda are similar, with drivers opposing high commissions and low fares.
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