Uber officially announced the withdrawal of its ride-hailing service from Nigeria and Uganda after operating in Nigeria for 12 years and in Uganda for ten years.
The company halted its operations in the two nations on September 2, 2026, after a comprehensive evaluation of its business priorities and investment focus in Africa. According to the company, the decision affects only Nigeria and Uganda while its other African markets remain unaffected by this step.
This will mean that drivers and frequent passengers in these markets will lose access to the Uber application.
Why is Uber Exiting Nigeria and Uganda?
Uber has not provided one distinct reason for its exit from Nigeria and Uganda.
Instead, the company noted that the decision was made based on the evolving priorities and investment focus of the firm. It also stated that it was committed to sub-Saharan Africa and saw long-term growth prospects there.
But the ride-hailing service environment in Nigeria had been becoming more challenging to operate in. The drivers have been facing rising costs of fuel and repairs, fares that have not kept pace with those costs, and platform commission.
Additionally, the elimination of Nigeria’s fuel subsidies in 2023 has driven up the cost of transportation, while rising inflation and a weakening currency have been compounding the difficulties of the drivers and operators.
Also, the Uber announcement came along with plans to lay off 3,300 workers worldwide, or roughly 10 percent of the company’s workforce. Yet, Uber hasn’t mentioned that these layoffs are the reasons for its exit from Nigeria and Uganda.
What Happens to Uber Drivers in Nigeria and Uganda?
This effect will be felt immediately by the drivers who used the Uber app for booking passenger trips.
Starting from September 2, the Uber app won’t process new trip requests from Nigerian drivers. This also applies to the drivers in Uganda, as Uber will close its Kampala operations.
According to Uber, the company will communicate with its drivers and employees personally and offer support during the transition process. Also, it was mentioned that active drivers will get an appreciation gift for leaving the platform.
Most of the drivers will probably try to migrate to competing apps instead of switching to traditional transport services.
What Happens to Uber Passengers?
Starting from September 2, passengers in Nigeria and Uganda won’t be able to make bookings through the Uber app.
The Help Center will still be open for some time to handle account-related inquiries. According to Uber, in Nigeria, customer support will be open until September 23. Also, according to the company’s communication with its drivers, there will be customer support until September 24 in some cases.
The passengers will need to find an alternative ride-hailing service.
Which Ride-Hailing Apps Can Fill The Gap Created By Uber?
With the exit of Uber, there is now room left open by its competitors.
In Nigeria, Bolt and inDrive are some of the major players in this sector vying for customers and rides. The local firms can take advantage of this as former Uber customers look for options.
In Uganda, there are many competitors like Bolt, Faras, SafeBoda and Yango who have the chance to vie for the Uber customers and rides, especially in Kampala.
The major challenge for consumers will be whether the competition results in reduced costs of the service or increased pricing.
12-Year History of Uber in Nigeria
The company launched in Lagos in 2014 and brought the app-based ridesharing service into one of Africa’s biggest and busiest cities.
Uber then started operating in other cities of Nigeria as well and diversified their services apart from conventional car rides. In 2019, Uber brought the Uber Boat service to Lagos and provided commuters with an alternative option to dodge the notorious traffic jams in the city.
Uber started operating in Uganda in 2016 and became one of the ride-sharing apps that facilitated the transformation of the city into an app-based transport system.
The two exits come following Uber’s exit from other African markets like Côte d’Ivoire and Tanzania, with Egypt, Ghana, Kenya, and South Africa being the only African countries left for the company.
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