Uber’s Departure Signals Shift in African Ride-Hailing Landscape

After a decade of operations, Uber has exited Nigeria and Uganda, following earlier withdrawals from Côte d’Ivoire and Tanzania. This marks a significant change for the company once ubiquitous across major African cities.

The ride-hailing giant initially came to Africa with global solutions but found itself adapting to local realities—particularly cash economies, unmapped roads, and unique consumer behaviors. Lagos became a testing ground where Uber pioneered features like in-app cash payments that later went global.

The Economics Didn’t Add Up

Analysts point to structural challenges as the root cause of Uber’s exit. The company’s 25% commission model proved unsustainable amid rising inflation, fuel costs, and currency devaluation—especially for drivers already operating on thin margins. As mobility analyst Ayodeji Audu noted, there was a “clear mismatch” between Uber’s cost structure and the economic realities of these markets.

Local Competitors Found Their Edge

While Uber focused on quality and safety features, competitors like inDrive—which allows riders and drivers to negotiate fares—gained traction by addressing affordability concerns. In a 2024 driver poll, inDrive ranked first with 47.4% preference compared to Uber’s 31.5%.

The difference became particularly evident during periods of economic stress like fuel price hikes, where inDrive’s flexible pricing model allowed the market to rebalance while Uber’s fixed fares struggled.

The Driver Question Remains

Uber attempted solutions like driver financing programs and partnerships with companies like Moove—which provided vehicles on drive-to-own terms. However, these efforts proved limited by reliance on independent drivers without full control over their operations.

As Audu observes, “The platforms that will win need to take control of supply seriously” through alternative models beyond just leveraging independent contractors.