Subscribe: Gist E-Paper
Ride-hailing company Uber has explained that its decision to shut down operations in Nigeria and Uganda was driven by a review of its business priorities and investment strategy across Africa, and not by recent regulatory developments.
The company officially ended its services in both countries on September 2, 2026, bringing to an end its 12-year presence in the Nigerian market.
In a statement, Uber's Head of Communications for East and West Africa, Lorraine Onduru, said the move followed an internal assessment of the company's long-term investment focus on the continent.
She dismissed reports linking the exit to the recent Federal Airports Authority of Nigeria (FAAN) directive on e-hailing operations at airports, insisting the decision was unrelated to the policy.
According to Onduru, Uber remains committed to Sub-Saharan Africa, where it continues to see significant growth opportunities, adding that the withdrawal affects only Nigeria and Uganda.
She said the company has begun engaging affected employees, drivers and riders to ensure a smooth transition.
Active drivers, she disclosed, will receive a token of appreciation, while rider support services will remain available for 21 days after the shutdown to handle pending issues.
Uber also confirmed that its Uber for Business services in Nigeria have been discontinued, while customers' data will continue to be protected in line with applicable privacy laws.
The announcement sparked mixed reactions among drivers and industry observers.
A FAAN cab operator, Eyo Christian, welcomed the exit, arguing that the commissions charged by Uber and similar platforms significantly reduced drivers' earnings and made the business unsustainable.
However, other drivers disagreed with that position.
Hakeem Adebajo, who drove for Uber for two years, described the platform as one of the best, citing its security features and better earnings compared to competing ride-hailing services.
Another driver, Olanrewaju Shittu, said Uber offered drivers weekly allowances and paid better than some competitors.
He attributed the company's exit partly to dishonest practices by some drivers, who allegedly persuaded passengers to cancel app bookings and pay them directly, depriving Uber of its commission.
Shittu also pointed to intense competition from rival platforms, particularly inDrive, whose flexible pricing model attracted both drivers and passengers.
Social media users also weighed in on the development.
Entrepreneur Akin Olaoye argued that Uber struggled because many users and drivers bypassed the platform, undermining its business model, while the company failed to build customer loyalty through incentives.
Another X user, identified as Enigma, countered that the problem was not culture alone but weak incentives, arguing that platforms must reward honest behaviour and make attempts to circumvent the system less attractive.
Uber's departure leaves competitors such as Bolt and inDrive to battle for a larger share of Nigeria's ride-hailing market, even as questions remain over the long-term sustainability of app-based transport services in the country.
