RismadarVoice Reporters
September 11, 2026
Uber’s decision to withdraw operations from Nigeria and Uganda has highlighted the growing difficulties facing ride-hailing companies in parts of Africa, where rising operational costs, driver dissatisfaction and intense competition are putting pressure on the business model.
The company ended its 12-year operation in Nigeria and nearly a decade-long service in Uganda on September 2, citing a review of its business priorities. Uber said the move was limited to the two countries but did not provide detailed reasons for the exits.
The withdrawals come after similar decisions in other African markets, including Ivory Coast in 2025 and Tanzania in January 2026, as the company adopts a more selective approach to its operations across the continent.
Analysts said the exits were not necessarily caused by a lack of demand but reflected the challenge of maintaining a balance between affordable fares for passengers, sustainable earnings for drivers and profitable operations for the platform.
Nigeria has become a major example of these pressures. Economic reforms, including the removal of fuel subsidies and changes to the naira exchange-rate system, have increased the cost of fuel, vehicle maintenance and imported spare parts, affecting drivers’ earnings.
The impact led drivers working with Uber and other platforms, including Bolt and inDrive, to stage a three-day strike in Lagos and Ogun states in March, protesting low fares and difficult working conditions.
Drivers said increasing expenses, combined with platform commissions, had significantly reduced their profits.
Ayoade Ibrahim, co-founder and general secretary of the Amalgamated Union of App-Based Transporters of Nigeria, said many drivers were struggling to survive due to the combined burden of commissions, fuel costs, maintenance, insurance and other expenses.
He noted that some drivers had moved to competing platforms or abandoned app-based services entirely to negotiate private trips.
Uber faces strong competition in Nigeria from companies such as Bolt, inDrive and local platforms, with drivers attracted to services that offer lower commissions or more flexible pricing systems.
In Uganda, the company faced similar challenges. Drivers had previously raised concerns over commission rates, with the Smart Online Drivers Association petitioning parliament in 2019 over what it described as unfair practices.
Uber’s departure from Uganda came amid growing competition from platforms including Bolt, SafeBoda, Faras, Yango and Tinka.
Despite leaving some markets, Uber said it remained committed to sub-Saharan Africa and would continue investing where it could provide sustainable opportunities for drivers and reliable services for passengers.
Kenya, where the government introduced regulations limiting ride-hailing commissions to 18 per cent in 2022, provides a different example. Uber reduced its commission from 25 per cent to 18 per cent following driver protests and continued operating in the country.
The company’s experience across Africa suggests that market size alone may not guarantee success, as platforms must balance consumer demand, driver income and operational costs.
Nigeria’s large population and growing urban transport needs present significant opportunities, but rising expenses and economic pressures have made the sector increasingly challenging.
Uber’s recent exits indicate that the future of ride-hailing in Africa may depend less on market size and more on whether companies can develop business models that work for passengers, drivers and operators alike.
