Uber Exits Nigeria and Uganda After 12 Years as Driver Costs Squeeze Margins
Updated
Updated · Al Jazeera English · Sep 11
Uber Exits Nigeria and Uganda After 12 Years as Driver Costs Squeeze Margins
3 articles · Updated · Al Jazeera English · Sep 11
Summary
September 2 marked Uber’s shutdown in Nigeria and Uganda, ending a 12-year run in Nigeria and about a decade in Uganda as it narrowed focus to markets that can support drivers at scale.
Nigeria’s fuel-subsidy removal and naira reforms drove up petrol, spare-parts and maintenance costs, leaving drivers squeezed between rising expenses and Uber commissions of 25% to 30%.
March strikes in Lagos and Ogun by drivers for Uber, Bolt and inDrive underscored the pressure, with many drivers already shifting to rivals or off-app cash trips to stay profitable.
Uganda showed a similar pattern: drivers had challenged Uber’s 25% commission since 2019 while Bolt, SafeBoda and smaller rivals intensified competition in Kampala.
Kenya points to a different outcome—after a 2022 cap set commissions at 18%, Uber stayed—suggesting its Africa strategy is becoming more selective after exits from Ivory Coast and Tanzania.