Ride-hailing giant Uber to stop operating in Nigeria, ending a 12-year run

Uber, the US-based ride-hailing company that operates in eight African countries, is winding down its operations in Nigeria, marking its exit after twelve years.

“We are writing to share some difficult news,” Uber said in an email to customers on Wednesday. “After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria, effective 2 September 2026.”

Uber’s exit ends a 12-year run in Nigeria, one of its earliest markets, where it launched in 2014. The company helped build the country’s ride-hailing market, but is leaving as intensifying competition, rising operating costs, and growing regulatory pressure have made the market harder to navigate.

In an email to drivers on the app, Uber said, “We know this is heavy news, and we want to express our deepest gratitude to you for being a part of our journey in Nigeria.”

Uber said it will provide a one-off “goodwill payment” to the drivers “to help ease this change.”

The departure leaves the market more concentrated around its biggest rivals, Bolt and inDrive, while creating the opportunity for a handful of local operators like Lagride and Rida. However, the economics of ride-hailing remain difficult, with high fuel and vehicle maintenance costs, pressure to keep fares affordable, and the need to continually attract and retain drivers.

Uber’s exit from Nigeria follows an extended period of clashes with drivers over fares and commissions, during which drivers staged a protest in March 2026.

The move comes as Uber laid off over 3,000 employees, around 10% of its global workforce, citing a restructuring affecting staff across its ride-sharing, delivery, and robotaxi divisions, according to a memo from CEO Dara Khosrowshahi, seen by TechCabal.

“This wasn’t a decision we made lightly because it will have a real impact on our teammates and friends who have worked hard for Uber. It’s important to say that these changes are about how we are organised and what we are prioritising, not about anyone’s contributions to Uber, which we will always value,” Khosrowshahi said in the memo.

In January, Uber exited Tanzania after years of regulatory tensions and clashes over fares, commissions, and regulatory control. The departure follows a long-running dispute with the Land Transport Regulatory Authority (LATRA), which regulates ride-hailing more like traditional transport than an open marketplace. The ride-hailing company left Côte d’Ivoire in September 2025 due to operational friction, ending its six-year operation in the Francophone African country. Nigeria marks Uber’s third African exit in about a year.

On September 1, the ride-hailing company also discontinued UberX, its low-budget service, in South Africa, underscoring a strategic pullback from countries where it sees weak economic value.