Why is Uber pulling out of some African markets?

Uber is exiting Nigeria and Uganda, marking a trend of challenges for ride-hailing platforms in Africa. These withdrawals, following similar exits from Ivory Coast and Tanzania, are attributed to the rising costs of operating a ride-hailing business. In Nigeria, economic reforms have increased fuel and maintenance expenses for drivers, squeezing their incomes despite pressure to keep fares affordable. Drivers face high platform commissions combined with these increased costs, leading to strikes and a migration to competing platforms like Bolt and inDrive, which offer more favorable terms or allow fare negotiation. Uganda presents similar issues with drivers resisting high commissions and facing competition from established and emerging platforms. Uber states these decisions are part of a business review, focusing investment on markets where it can offer scalable earning opportunities.

Uber has ceased operations in Nigeria and Uganda, effective immediately. The ride-hailing service cited challenging market conditions in Nigeria, Africa's most populous country, where it had operated for 12 years and even launched a boat service in Lagos. Increased operating costs for drivers, including rising fuel prices due to subsidy removal and global conflicts, have led to driver protests and industrial action. In Uganda, Uber's departure from Kampala is expected to be filled by other taxi apps. Uber stated it will support affected employees and drivers and keep its help center open until September 23rd to address outstanding issues.