Uber Folds Operations in Nigeria and Uganda

Commuters across Lagos and Kampala awoke Wednesday to blank screens as Uber officially ceased operations, marking the end of a 12-year run navigating Nigerian gridlock and a decade serving Ugandan customers.

The shutdown coincided with Uber’s global restructuring, which saw 3,300 corporate jobs eliminated and capital redirected towards autonomous vehicle development in core markets. But while this may seem like part of a larger trend, industry analysts point to deeper structural challenges that made Nigeria particularly difficult for the ride-hailing giant.

The Economics Unraveled

The tipping point arrived mid-2023 when President Tinubu removed fuel subsidies and allowed the naira to float. These moves quadrupled pump prices while import costs soared, pushing vehicle maintenance beyond many drivers’ reach.

Uber faced an impossible dilemma: raise fares and risk losing price-sensitive commuters or maintain affordability and see driver incomes fall below sustainable levels. The platform attempted a middle path that satisfied neither group, leading to strikes by the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATON) in March 2026.

Local Competitors Stepped Up

While Uber struggled with its rigid global model, nimble local competitors thrived:

• Bolt captured 55-60% market share by maintaining lower overheads, offering a 20% commission, and expanding into secondary cities.
• inDrive gained traction with its peer-to-peer bidding system that allowed direct negotiation between passengers and drivers at a modest 10% platform take.

These competitors proved more adaptable to Nigeria’s unique terrain, accepting older vehicles and offering pricing models better suited to local economic realities.

What’s Next for Drivers?

The exit leaves an estimated 10,000 drivers in limbo, particularly those locked into drive-to-own contracts with Moove, the vehicle financing startup that provided roughly 5,000 Suzuki S-Presso hatchbacks to Uber operators.

With Uber gone, these drivers now face the challenge of either finding alternative platforms or taking full ownership of vehicles they may not be able to afford without a reliable dispatch system.