Ride-hailing company Uber abruptly exited one of Africa's largest markets in early September, ceasing operations in Nigeria and Uganda on September 2, 2026. According to reports from BBC, the US-based firm founded in 2009 had entered Nigeria in 2014 and Uganda in 2016 before expanding throughout the continent. The company stated that this decision was made after a thorough business review and is limited strictly to these two markets, with operations continuing across the rest of the continent. As reported by BBC, Uber remains committed to sub-Saharan Africa where it continues to see strong growth and opportunity. Notably, Uber's exit from Nigeria and Uganda came the same day CEO Dara Khosrowshahi announced the company would cut its global workforce by 10%.
The exit came amid a brutal cost of living crisis in Nigeria, with the removal of fuel subsidies causing fuel and goods prices to skyrocket. According to AFP, Nigerians have been living through a brutal cost-of-living crisis amid economic overhauls introduced by President Bola Tinubu. The removal of 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. Uber taxi drivers have long complained that app prices are too low given rising fuel costs and that commission charges are too high. The frustration reached a peak in March when drivers staged a three-day strike in Lagos and Ogun over unsustainable fares and poor working conditions. As Al Jazeera reports, driver Farouk Adebayo explained how the economics had changed significantly, stating that since the government removed the subsidy, he has really been struggling with making a profit with Uber the way he used to.
Competing platforms such as Bolt and inDrive continue to operate in Nigeria alongside local platforms like Rida and LagRide. As reported by Business Insider Africa, inDrive's peer-to-peer pricing model allows passengers and drivers to negotiate fares, providing flexibility in response to local market conditions. The company's country representative Ashif Black noted that Uber's departure highlights the difficulty of building sustainable mobility businesses across markets where inflation, currency volatility, fuel prices, vehicle financing and maintenance costs can quickly change economics. 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. In Uganda, the Smart Online Drivers Association resisted platform commissions in 2019 when it petitioned parliament over what it described as exploitative practices, particularly concerned about Uber's 25% commission while fares remained low. Smaller platforms including Faras, Yango and Tinka have increased competition in the Kampala market.
According to The Street.com, Nigeria's population of 242.6 million with a projected GDP per capita of $1,556 for 2026 means the country contains a paying market the size of a mid-tier American metro. Nigeria is no longer Africa's largest economy, with IMF projections showing it behind South Africa and Egypt in dollar terms, with its 2026 nominal GDP near $377 billion. The report indicates that Uber spent its early Nigerian years as the premium option with tighter vehicle and driver standards, while Bolt treated rides as commodities for a thin middle class and inDrive allows direct fare negotiations between passengers and drivers. Over its 12 years of operating in Nigeria, Uber has expanded its services, including launching a boat service in 2019 to help commuters bypass Lagos's notorious congestion. As Reuters reports, Uber has not provided specific reasons for the Nigeria exit, but the company says it is focusing investment on markets where it can provide earning opportunities for drivers at scale and where riders can travel seamlessly. The company stressed that it remains committed to sub-Saharan Africa, though its future may increasingly depend on which markets can make the economics work.
