Full Breakdown
Uber Exits Nigeria and Uganda Amid Rising Operating Costs
By Drooid · · How we work
Core Withdrawal
On September 2, 2026, Uber announced the termination of its ride-hailing services in Nigeria and Uganda after a “thorough review” of its business priorities. The company ended a 12-year presence in Nigeria and roughly a decade in Uganda. Uber did not supply detailed country-specific reasons, stating only that it will focus investment on markets where it can provide scalable earning opportunities for drivers and seamless travel for riders. The exits follow earlier withdrawals from Côte d’Ivoire (2025) and Tanzania (January 2026), leaving Kenya as Uber’s sole East-African market.
Background & Context
Nigeria’s recent economic reforms—most notably the removal of the fuel subsidy and changes to the naira exchange-rate regime—have driven up petrol, spare-part and vehicle-maintenance costs for drivers. In Uganda, drivers organized a 2019 petition objecting to Uber’s 25 percent commission while fares remained low. Competition from Bolt, inDrive, SafeBoda and local platforms such as Faras and Yango has intensified pressure on margins.
Data & Statistics
- Uber’s platform commission ranges from 25 to 30 percent of each fare.
- Drivers cite additional expenses: fuel, maintenance, insurance, occasional fines, and vehicle financing.
- Nigeria’s population stands at 237 million, representing a large potential rider base.
- Uber reported contributing ?34 billion to the Nigerian economy and enabling drivers to earn an additional ?6.1 billion compared with alternative work.
- The company’s global restructuring includes the elimination of roughly 3,300 jobs (about 10 percent of its workforce).
Official Statements & Responses
Uber emphasized that the withdrawals are part of a strategic review, not a reaction to any single regulatory action. In response to the July 30 directive from the Federal Airports Authority of Nigeria that halted Uber operations at managed airports, Uber clarified that the Nigeria exit was unrelated to that regulatory move.
Criticism & Opposition
Drivers’ union AUATON warned that drivers are being “squeezed from several directions,” with commissions, fuel and maintenance costs eroding earnings.
Conflicting Reports & Gaps
- Uber did not disclose profitability data for the two markets, leaving the precise financial rationale unclear.
- Reuters noted the absence of specific reasons from Uber, while driver representatives attribute the exits to macro-economic pressures and commission structures.
- No independent audit of driver earnings or platform costs has been published, creating a gap in verification of the claimed economic squeeze.
Verbatim Quotes
- “The exits highlight that scale alone does not guarantee sustainability in African mobility markets,” — Ashif Black
- “We’re in very clear emerging markets. Our segment is very different, and we can really help brands connect with a new audience in a different way,” — Andries Smit, inDrive’s chief growth business officer
These statements capture perspectives from competitors and local industry leaders on the sustainability of ride-hailing models in Africa.
