Uber shuts operations in Nigeria and Uganda with immediate effect

ByMakuochi Okafor BBC Africa, Reporting fromLagos.

Key points

• The removal of Nigeria's fuel subsidy after President Bola Tinubu's election in 2023 saw the cost of living rise.
• Uber has confirmed it is closing its operations in Nigeria – Africa's most populous country – and the East African nation of Uganda with immediate effect.
• The announcement came as Uber's chief executive, Dara Khosrowshahi, remarked the business was cutting its global workforce by 10%.
• Over the last year, Uber has additionally pulled out of Ivory Coast and Tanzania.
• Uganda's Daily Monitor newspaper remarked Uber's departure would mean a major change for commuters in the capital, Kampala.

In practice, the global ride-hailing giant remarked it had come to the "difficult decision" after a thorough review of its business. It began operating in Nigeria in 2014 and in Uganda two years afterwards.

Uber taxi drivers in Nigeria have long complained that rates on the app are too low, given the rising cost of fuel, and that commission charges are too high. The firm has additionally faced pressure from rival platforms.

For context, the announcement came as Uber's chief executive, Dara Khosrowshahi, remarked the business was cutting its global workforce by 10%. Uber to cut over 3, 000 jobs in major global restructuring.

Over the last year, Uber has additionally pulled out of Ivory Coast and Tanzania. The latest announcement means Egypt, Ghana, Kenya and South Africa are the only African countries in which the firm now operates.

"This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent, " Uber's statement to the BBC remarked.

"We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity."

Over its 12 years operating in Nigeria, Uber had expanded its services. In the commercial hub of Lagos, it introduced a boat service in 2019 in a bid to assist commuters bypass the city's notorious congestion.

Lagos, one of Africa's largest and busiest cities, is infamous for its long traffic jams that cause gridlock and hamper business activity.

As well as a number of local operators, other ride-hailing taxi apps have introduced in the West African nation over the last decade, including international competitors such as Bolt and inDrive.

But the Nigerian market has become increasingly challenging for them all, with drivers staging protests and industrial action over recent years over rising operating costs, low fares and working conditions.

In practice, the removal of Nigeria's fuel subsidy after President Bola Tinubu's election in 2023 saw the cost of living rise. The subsidy had kept down the cost of petroleum products low for decades.

This year, motorists have been hit again by the rise in petrol rates after the US's war with Iran.

Uganda's Daily Monitor newspaper remarked Uber's departure would mean a major change for commuters in the capital, Kampala. But it remarked the void was probable to be filled by other taxi apps such as Faras, Bolt and SafeBoda.

Uber pledged to backing employees and drivers affected by the decision and stated its support centre would remain open for those in Nigeria and Uganda until 23 September to agreement with outstanding problems. You may additionally be interested in. Bolt acts to halt Nigeria-South Africa 'taxi-war'. Kenya's push to create motorbike taxis go electric. Nigerian shoppers warm to online retailers. The enduring menace of Kenya's motorbike taxis.

Go to BBCAfrica.com, external for more news from the African continent.

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