Uber's Major Retreat: African Operations Cease in Nigeria and Uganda Amid Global Restructuring

Uber has announced its decision to cease ride-hailing operations in Nigeria and Uganda, effective Wednesday, September 2, 2026. This marks the end of 12 years of presence in Nigeria, where the company pioneered app-based ride-hailing upon its launch in Lagos in 2014. The announcement coincides with Uber CEO Dara Khosrowshahi's revelation of a global restructuring that includes cutting approximately 3,300 roles, representing about 10% of its worldwide workforce, aimed at streamlining management layers. Although Nigeria and Uganda were not explicitly named in the memo regarding job cuts, the timing suggests a clear link between these two strategic decisions.

Lorraine Onduru, Head of Communications for Uber in East and West Africa, stated that the company is refocusing investment in markets where it can offer substantial earning opportunities for drivers at scale. Uber has emphasized that this decision is specific to Nigeria and Uganda, clarifying that it does not impact operations in other African markets, nor is it related to the Federal Airports Authority of Nigeria (FAAN) directive on e-hailing at airports. This move is largely understood as a portfolio decision aligning with the company's broader strategic direction.

A primary driver behind this shift appears to be Uber's increasing focus on autonomous vehicles. Khosrowshahi identified the autonomous future as a key priority, alongside core products and payments to drivers and couriers. Reports indicate that the restructuring reallocates significant spending towards Uber’s robotaxi business, with commitments exceeding $10 billion to partnerships with firms such as Avride, Lucid, Nuro, and Rivari. Robotaxis require specific market conditions: dense, high-fare, regulation-friendly cities with robust road infrastructure. Cities like Lagos, Abuja, and Kampala are currently deemed unsuitable for such advanced operations, and this focus structurally reduces Uber's need for markets that primarily rely on human drivers operating in challenging conditions.

Uber's footprint in Africa has significantly diminished in under two years. After initially expanding to eight African markets following its entry in Johannesburg in 2013, the company has steadily withdrawn from several regions. It exited Côte d’Ivoire in 2025 after six years, conceding the Abidjan market to Russia’s Yango. On January 30, 2026, Uber pulled out of Tanzania following a regulatory dispute over fixed fares, leaving Dar es Salaam to competitors Bolt and Little. With the impending departure from Nigeria and Uganda, Uber will be operational in only four African markets: Egypt, Ghana, Kenya, and South Africa, with South Africa alone accounting for approximately 25 of the cities Uber has served on the continent. This signifies that Uber has withdrawn from half of its African markets, including the two most populous, in a relatively short period.

Uber's Nigerian operations have faced considerable pressure in recent years. The removal of fuel subsidies in May 2023 significantly increased operating costs for drivers, who were unable to independently adjust fares. This led to repeated strikes and app shutdowns as drivers protested against commission rates, which could be as high as 25%. In July 2026, the Public Complaints Commission even directed the Federal Capital Territory Administration to intervene regarding these complaints. Uber countered criticism by releasing an economic impact report claiming Nigerian drivers earned an additional ₦6.1 billion ($9.6 million) in 2023 through its platform. Unlike previous exits, no regulator forced Uber's departure from Nigeria.

With Uber's exit, local competitors like Bolt, inDrive, and LagRide are expected to absorb the departing riders and drivers, inheriting the same economic conditions that Uber has now deemed unprofitable. Uber has not disclosed the exact number of drivers, riders, or employees affected but stated it is communicating with them directly. Active drivers are being offered a