Ride-hailing company Uber abruptly exited one of Africa’s largest markets in early September. It ceased its operations in Nigeria and Uganda on 2 September, ending a 12-year run in Africa’s most populous country. It left Tanzania earlier this year.
The US-based firm, founded in 2009, entered , Africa’s most populous country, in 2014, and in Uganda two years later, before expanding throughout the country.
Why Uber left these two African markets
While the company did not reveal any specific reason for the move, it had said in a statement, “After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria, effective 2 September 2026.”
Uber’s statement to the BBC said, “This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent. We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity,” it added.
Notably, Uber’s exit from Nigeria and Uganda came the same day said the company would cut its global workforce by 10%.
Cost of living pressures
Nigerians have been living through a brutal cost-of-living crisis amid economic overhauls introduced by President Bola Tinubu, AFP reported.
The removal of a fuel subsidy sent fuel and goods prices skyrocketing, and motorists were squeezed again when the war in Iran tightened global oil supplies.
For ride-hailing drivers, petrol, imported spare parts and vehicle maintenance have become more expensive, squeezing incomes at a time when fares remain under pressure, Al Jazeera reported.
Uber’s decision to exit further impacted the livelihood of Nigerian drivers who depended on the platform — some of whom are already reeling from the high cost of fuel.
Fares under strain
Uber taxi drivers in Nigeria have long complained that prices on the app are too low, given the rising cost of fuel, and that commission charges are too high, the BBC reported.
The problem was not simply what Uber charged. It was the accumulation of costs on top of the platform’s commission.
In Nigeria, rising fuel prices, inflation and currency volatility have increased operating costs for drivers and platforms, adding pressure to an already competitive market.
The frustration came to a head in March, when drivers working for Uber, rivals Bolt and inDrive staged a three-day strike in Lagos and Ogun over what they described as unsustainable fares and poor working conditions.
Uber driver Farouk Adebayo, who joined the strike in Lagos, told Al Jazeera how the economics had changed.
“Since the government removed the subsidy, I have really been struggling with making a profit with Uber the way I used to. When I add the cost of maintaining my car and everything else, the profit I was making from driving with Uber was not worth it,” Adebayo said.
Meanwhile, Ayoade Ibrahim, co-founder and general secretary of the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), said, “…the platform takes 25–30% commission. Then fuel. Then maintenance. Then insurance. Then the occasional fine. What remains is barely enough to feed a family, let alone save for the next repair. That is why so many drivers told us, as a union, that they had already migrated to Bolt and inDrive, or gone offline to negotiate cash trips simply to survive.”
Mobility and business models
Over its 12 years of operating in Nigeria, Uber has expanded its services. In the commercial hub of Lagos, it launched a boat service in 2019 to help 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.
inDrive, which still operates in Nigeria, argues that Uber’s departure is not a verdict on Africa’s ride-hailing opportunity, but highlights the need for adaptable business models.
Speaking exclusively to Business Insider Africa, Ashif Black, country representative for inDrive in South Africa, said Uber’s exits highlight the difficulty of building a sustainable mobility business across markets where inflation, currency volatility, fuel prices, vehicle financing and maintenance costs can quickly change the economics of a ride.
“The exits highlight that scale alone does not guarantee sustainability in African mobility markets,” Black said. “Uber has described its decision as part of a review of its business priorities and investment focus, so I would not read its exit as a verdict on Africa’s mobility opportunity,” he added.
Pressure from rival platforms
The company has also faced pressure from rival platforms. Competing apps such as Bolt and inDrive still operate in Nigeria, alongside local platforms, such as Rida and LagRide.
Why inDrive believes its model works
inDrive’s peer-to-peer pricing model allows passengers and drivers to negotiate fares, providing flexibility in response to local market conditions.
Drivers can also choose which rides they accept, with no penalties for declining trips, according to Black.
Black told Business Insider Africa that there is no single fare that will always be fair for every journey, particularly as fuel, maintenance and other operating costs change.
Lower service fees and driver freedom to choose rides are central to inDrive’s approach, aiming to achieve sustainability amid Africa’s economic volatility.
“Choice is fundamental in African markets because consumers and drivers are not a homogeneous group,” he said.
Why Nigeria was never as big a market
Nigeria’s population is roughly 242.6 million. Its projected GDP per capita for 2026 is about $1,556, according to the IMF. That second figure is the one that decides whether a ride-hailing business works.
A country can hold a quarter of a billion people and still contain a paying market the size of a mid-tier American metro, because discretionary spending, not headcount, buys rides, the Street.com reported.
Nigeria is no longer Africa’s largest economy either. According to IMF projections, a series of Naira devaluations pushed it behind South Africa and Egypt in dollar terms, and its 2026 nominal GDP sits near $377 billion.
Uber spent its early years in Nigeria positioned as the premium option, with tighter vehicle and driver standards, the report added.
Bolt arrived in 2016 and treated rides as a commodity for a thin middle class, and inDrive later let riders and drivers haggle over fares directly. State-backed LagRide added a third front in Lagos.