Full Breakdown
Uber Pulls Out of Nigeria and Uganda Amid Rising Costs and Intensified Competition
By Drooid · · How we work
Core Exit Details
On September 2, 2026, Uber announced the termination of its ride-hailing operations in Nigeria and Uganda after a “thorough review” of its business priorities. The company had operated in Nigeria for 12 years (launching in Lagos in 2014) and in Uganda for about a decade (entering Kampala in 2016). Uber said the decision was limited to those two markets and did not indicate any regulatory trigger.
Economic Pressures Driving the Decision
Nigeria’s macro-economic reforms—most notably the removal of the fuel subsidy and changes to the naira exchange-rate regime—have sharply increased the cost of petrol, imported spare parts and vehicle maintenance. Drivers face a commission of 25–30 percent and must still cover fuel, maintenance, insurance and occasional fines, leaving little margin for profit. In Uganda, high commissions (25 percent) and low fares have been a concern since a 2019 petition by the Smart Online Drivers Association.
Competitive Landscape
Rivals are offering lower platform fees. inDrive’s peer-to-peer model charges roughly a 10 percent service fee, while Bolt’s published commission in South Africa is 24 percent (including VAT). Local operators such as Rida, LagRide, SafeBoda, Yango and Tinka also compete for drivers and passengers, eroding Uber’s driver base in both countries.
Official Statements & Responses
- Uber’s Kenyan general manager said, “We recognise that drivers are facing pressures from rising fuel, maintenance, insurance and other operating costs.”
- inDrive’s chief growth business officer added, “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.”
Criticism & Opposition
- The National E-hailing Federation of South Africa (NEFSA) condemned the exits as “socio-economic abandonment,” warning that thousands of drivers are left with debt and deactivated apps.
- NEFSA called for a continental code on responsible platform exits, urging the African Union, ECOWAS and the East African Community to intervene.
- The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) described drivers as being “squeezed from several directions,” citing commissions, fuel and maintenance costs.
Market Impact and Emerging Alternatives
After Uber’s departure, many drivers migrated to Bolt and inDrive or shifted to cash-only trips. Indigenous platforms such as SimpliRide are promoting subscription-based models that let drivers retain 100 percent of base fares after paying a flat platform fee. Alero Fregene noted, “The next chapter of Nigerian ride-hailing should increasingly be built around the economic realities of the people who actually power the ecosystem.”
What’s Next for Uber in Africa
Uber remains active in Kenya, describing the market as having “strong potential.” The Kenyan High Court recently blocked enforcement of the 18 percent commission ceiling, giving platforms greater flexibility to set driver earnings and fare structures. Uber indicated it will continue constructive engagement with Kenyan authorities.
Verbatim Quotes
- “The exits highlight that scale alone does not guarantee sustainability in African mobility markets,” — Ashif Black, inDrive South Africa.
- “We will continue to engage constructively with the relevant authorities and stakeholders,” — Uber general manager, Uganda.
