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Uber's African Retreat: Ride-Hailing Giant Exits Côte d’Ivoire After Six Years

Published 3 weeks ago3 minute read
Uber's African Retreat: Ride-Hailing Giant Exits Côte d’Ivoire After Six Years

The African tech ecosystem is vibrant and dynamic, characterized by both the challenges global players face and the innovative solutions emerging from local talent. Recent developments underscore this duality, from a major ride-hailing giant's withdrawal from a key market to a student's ambitious AI project and a climate-tech startup's significant funding round, all reflecting the unique realities and opportunities across the continent.

A notable development is Uber's quiet withdrawal from Côte d’Ivoire after six years of operation in Abidjan, marking the first time the ride-hailing giant has completely ceased operations in an African country. The exit, which occurred on September 24, was not accompanied by an official explanation, but regulatory hurdles and deep-seated frustrations among drivers are widely cited as contributing factors. Uber launched in Abidjan in December 2019, entering a competitive landscape already populated by players like Bolt, Yango, and local rival Moja Ride. This departure leaves a significant market share for these competitors to claim. This isn't Uber's first operational challenge in Africa; the company suspended services in Tanzania in April 2022 due to regulatory issues. While Uber continues to operate in Nigeria, Ghana, Kenya, and South Africa, it often faces protests over commission rates and delayed payouts from drivers, particularly in Nigeria. The core issue in Côte d’Ivoire appears to be a business model that failed to align with local economic realities, where drivers often require daily access to earnings for immediate expenses like fuel, maintenance, and groceries. Uber’s payout cycles and fee structures frequently left them cash-strapped, and riders also expressed dissatisfaction with fare consistency and vehicle availability. This situation highlights a crucial lesson for mobility companies: success in Africa necessitates designing solutions that accommodate cash-sensitive economies, implementing faster payout systems, and fostering strong partnerships with local financial institutions, insurers, and regulators. A global brand alone is insufficient to guarantee sustained growth without adapting to local cash flow dynamics and operational realities.

On the innovation front, Obinna Chimdi, an 18-year-old university student in Port Harcourt, has conceptualized ChatATP, an AI platform designed to enable large language models (LLMs) like ChatGPT to perform real-world actions beyond mere text generation. Chimdi envisions ChatATP as a universal protocol, akin to HTTP for AI agents, that connects LLMs to the physical world through specialized toolkits. His goal is to overcome the current limitations of AI models that, for instance, cannot book flights. Despite the ambitious scope, ChatATP currently serves only a handful of users—his neighbor and two classmates—and faces formidable competition from established open-source projects like AutoGPT and well-funded startups such as Lumio AI. Nevertheless, Chimdi's innovative Agents2 protocol could potentially provide the competitive edge needed for his project to distinguish itself in the rapidly evolving field of artificial intelligence.

Meanwhile, the climate-tech sector in Africa is gaining significant traction, exemplified by Kenyan startup SunCulture, which recently secured $5 million from WaterEquity. This funding aims to significantly expand the deployment of its solar-powered irrigation systems to smallholder farmers across Africa. The investment marks the inaugural deal under WaterEquity’s new Water & Climate Resilience Fund, specifically designed to finance solutions addressing water scarcity and climate change impacts in emerging markets. SunCulture, established in 2013, has earned a strong reputation for making irrigation accessible and affordable through its solar pumps and a flexible

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