How Uber exit affects drivers, passengers

The decision by Uber to wind down its ride-hailing operations in Nigeria has triggered concerns among drivers, passengers and industry stakeholders, with fears that the exit could reduce competition, increase transportation costs and further weaken earning opportunities for app-based transporters.

Uber announced on Wednesday that it was ending its ride-hailing operations in Nigeria, bringing to an end more than a decade of operations in the country.

The development has drawn criticism from the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), which accused the company of abandoning Nigerian drivers without adequate notice.

National Spokesperson of AUATON, Jossy Adaraniwon, described the decision as “unprofessional and irresponsible,” alleging that Uber had failed to adequately consider the thousands of drivers who contributed to building its Nigerian operations.

According to him, Uber’s exit was partly linked to what he described as an exploitative business model that failed to protect workers’ rights or support collective bargaining.

He alleged that Bolt and InDrive subsequently adopted similar practices, resulting in what he called a “race to the bottom” in Nigeria’s ride-hailing sector.

Adaraniwon said the situation had contributed to longer passenger waiting times, reduced earnings and a decline in active drivers because of poor working conditions.

He urged Bolt and InDrive to establish genuine collective bargaining mechanisms with AUATON, warning: “If you continue to operate without creating a genuine atmosphere for collective bargaining with AUATON, you will suffer the same fate.”

He also demanded fair remuneration, welfare packages, transparency, safety measures and decent working conditions for drivers, in line with International Labour Organisation standards.

The union further alleged that Uber had played an anti-union role in Nigeria, including petitioning the Federal Ministry of Labour over AUATON’s registration.

Adaraniwon also alleged that Uber sponsored individuals within the union to create internal crises and frustrate negotiations with drivers.

Meanwhile, Uber drivers and customers in Abuja expressed mixed reactions to the company’s departure.

An Uber driver, Friday Ayegba, who said he had driven with the platform for almost three years, said the company had become an important source of income for his family.

“Uber is very important to my family because what I earn from Uber is what I use to support my family,” he said.

Ayegba said he would particularly miss Uber’s driver bonuses, promotions and navigation system, which he described as accurate and reliable.

“Uber normally gives us driver promos that help us adjust our fuel expenditure, but now that they are going, it is going to affect us much,” he said.

A customer, Mercy Marcus, also expressed disappointment, describing Uber as one of the most affordable ride-hailing options.

“Uber is one of the cheapest means of transportation. Among Bolt, InDrive and Uber, Uber is cheaper,” she said.

However, another customer, Kasim Abdullah, said the availability of Bolt, InDrive and emerging platforms meant the exit would not necessarily create a permanent gap.

“There is Bolt. There is InDrive, and there are other ones that are coming up now,” he said.

Another driver, Emmanuel Ogbor, said Uber’s departure would have little effect on him because he primarily used the platform as a side hustle. He also complained about the company’s commission amid high fuel costs.

“With the cost of fuel in Nigeria, we are buying fuel for N1,360 now, and they are taking 30 per cent off every ride,” he said.

Ogbor said he would instead focus on indigenous platforms, particularly InDrive, which he said had a lower commission.

Beyond the immediate concerns of drivers and passengers, the exit has also raised broader questions about competition in Nigeria’s ride-hailing market.

Uber had contributed significantly to the development of app-based transportation, providing passengers with another option and drivers with an additional source of income.

An Uber-commissioned Public First study estimated that Uber contributed about N34 billion to Nigeria’s economy in 2023 and enabled drivers to earn an additional N6.1 billion annually through the platform.

The exact number of Nigerian drivers, employees and riders affected by the exit has not been disclosed by Uber.

‘I’m heartbroken’, former spokesperson laments exit

Former Uber communications executive, Francesca Uriri, has expressed deep sadness over the ride-hailing company’s decision to exit Nigeria, describing the development as a painful loss after years of building relationships, campaigns and initiatives around mobility and economic empowerment.

Uriri, who uses the Instagram handle @zanyfran, shared her reaction in an emotional post following Uber’s announcement that it was ending its ride-hailing operations in Nigeria.

Uriri, who previously served as Head of Communications for West Africa at Uber, said she was “heartbroken” by the company’s exit, stressing that her experience with the platform went far beyond simply having a job.

Public profiles identify Uriri as a communications professional who previously worked with Uber and as the founder of Leading Ladies Africa.

“I’m heartbroken in a way that I can’t fully describe. And honestly, I also feel a little silly. Because it’s just work right? Only, it isn’t,” she wrote.

She said the news that Uber was leaving Nigeria “hit me like a gut punch” because the company’s presence in the country had become intertwined with the lives and stories of many people.

“Because it wasn’t ‘just work.’ It was about real people. Real stories. Real impact,” she said.

Uriri recalled some of the individuals whose stories, she said, had become part of her experience at Uber.

She mentioned Madam Blessing, described as the company’s first female driver-partner who also operated a thriving fashion business.

She also recalled Tobi, a National Youth Service Corps member who won a brand-new car, highlighting what she regarded as some of the personal opportunities and economic impact associated with the platform.

Beyond individual beneficiaries, Uriri paid tribute to the team she worked with, describing them as “easily the most talented, driven and passionate people” she had ever worked with.

…Exit from Nigeria will reduce options – CFAO Nigeria Deputy MD

Kunle Jaiyesinmi, Deputy Managing Director of CFAO Nigeria, said the announcement came as a shock, particularly given Uber’s position as one of the pioneers of app-based ride-hailing services in Nigeria.

According to Jaiyesinmi, Uber’s entry into the Nigerian market helped establish a new model of urban transportation, subsequently encouraging other operators to enter the sector.

He noted that competitors such as Bolt, LagRide and other local mobility platforms have since expanded the options available to commuters.

He, however, expressed disappointment that Uber would be leaving Nigeria at a time when the country’s population is experiencing significant growth and demand for convenient transportation is increasing.

Jaiyesinmi attributed some of the challenges facing ride-hailing operators to the broader economic environment, particularly the deregulation of petroleum products and the removal of fuel subsidies.

He explained that rising operating costs have placed additional pressure on the ride-hailing business, while consumers have not experienced a corresponding increase in purchasing power.

“It’s always good to reinvent business models,” he said, stressing that developments in the wider economy had significantly affected the viability of ride-hailing services.

On the implications of Uber’s exit, Jaiyesinmi said one of the immediate consequences would be a reduction in the choices available to commuters. He particularly highlighted Uber’s standards regarding the vehicles deployed on its platform.

According to him, Uber has historically placed considerable emphasis on vehicle certification and quality, which contributed to the customer experience associated with its service. Its departure, he suggested, could leave customers with fewer opportunities to choose from vehicles that meet similarly high standards.

The development could also have economic consequences for drivers who depend on Uber for their livelihoods, he noted, saying drivers previously enlisted on the platform would have to seek alternative ways of deploying their vehicles and generating income.

…Uber rival Bolt expresses commitment to Nigerian market

Meanwhile, Bolt has reaffirmed its long-term commitment to Nigeria, assuring riders, drivers and other stakeholders that the company remains focused on the Nigerian market and its continued growth.

Bolt said Nigeria remains an important market for the company, with continued focus on providing reliable mobility solutions for riders, creating earning opportunities for drivers and working with stakeholders to support the development of the country’s mobility ecosystem.

“Nigeria remains an important market for Bolt, and we remain firmly committed to the country. We have built a strong community of riders and driver partners over the years, and our focus is on continuing to serve them while strengthening our operations and creating more opportunities across the market,” said Teddy Appa-Dankyi, Senior General Manager, Bolt West Africa.

He added: “We recognise that there is understandably some uncertainty following recent developments in the industry. However, our focus remains firmly on the long term. We will continue working closely with our drivers, riders, regulators and other partners to contribute to a reliable, accessible and sustainable mobility ecosystem in Nigeria.”

…Uber unveils robotaxi in London

Meanwhile, less than 24 hours after terminating operation in Nigeria, the company is expanding its services elsewhere.

Uber, in partnership with British Artificial Intelligence company Wayve, unveiled autonomous rides in London, marking a new step in the company’s expansion of robotaxi services.

According to a Reuters report on Thursday, London is now the second city in Europe where Uber offers autonomous rides, after first it launched its robotaxi service in Zagreb.

At the initial stage, fewer than 20 Wayve-powered Ford Mustang Mach-E vehicles will be available.

Passengers requesting UberX, Uber Comfort or Uber Electric could be matched with one of the autonomous vehicles at no additional cost.

A licensed operator will remain inside the vehicle initially to monitor the journey. Fully driverless operations are expected in the future, subject to regulatory approval.

Uber’s Global Head of Autonomous Mobility, Sarfraz Maredia, said the launch would help build public and government confidence in the technology.

“This will build credibility with consumers as well as with the government,” Maredia said.

…Uber exit, vote of no-confidence on Tinubu’s policies – ADC

Meanwhile, the African Democratic Congress (ADC) has described the exit of Uber from Nigeria and the scaling down of operations by several international companies, as evidence that President Bola Ahmed Tinubu’s economic policies are “turning Nigeria into a graveyard of businesses.”

ADC National Publicity Secretary, Mallam Bolaji Abdullahi, in a statement on Thursday said the growing list of businesses “shutting down, scaling back or leaving the country exposes the widening gap between the government’s claims of economic progress and the reality”, adding that the development is a vote of no-confidence on President Tinubu’s economic policies.

The party said it is worried that President Tinubu and his government were celebrating a marginal 0.2 percentage-point improvement in GDP at a time when businesses are closing, jobs are disappearing and millions of Nigerians are sinking deeper into poverty.

“Certainly, a 0.2% growth does not justify the extreme hardship that Nigerians are suffering,” the party said, arguing that while the “Tinubu government celebrates a marginal improvement of 0.2 percentage points, Nigeria’s poverty rate has snowballed to 63%, affecting an estimated 140 million Nigerians.”

The party asked President Tinubu to explain 0.2% GDP growth to the 140 million Nigerians who have sunk into poverty since he came to power; “the workers who have watched the value of their salaries disappear; businesses that have struggled with energy costs; and millions who have been forced to reduce the quantity and quality of food on their tables.

“When the President and his party say things are getting better, we expect them to tell us what has improved in the lives of Nigerians. They should tell us how much food their “GDP growth” has put on the tables. They should tell us which bill it has paid. If 0.2% is a mark of success in their books, President Tinubu and APC should tell us what they consider as failure,” the ADC said.

Abdullahi lamented that Uber’s exit after twelve years in Nigeria reflects the increasingly hostile operating environment confronting businesses, particularly the soaring cost of energy and transportation, with the price of fuel rising by as much as 1,700% following the removal of fuel subsidy and devaluation of the naira.

“This is precisely why the ADC Presidential Candidate, Atiku Abubakar, has proposed the restoration of a targeted fuel subsidy to bring down the cost of fuel, transportation and production,” the party said.

It also cited the Manufacturers Association of Nigeria’s earlier report that 767 manufacturing companies, including 20 iconic global brands, have shut down or ceased operations in Nigeria, while hundreds more are distressed since President Tinubu assumed office in 2024.

“It listed among the companies that have shut down or scaled down operations in the country to include Microsoft, Jumia and Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline (GSK), Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons, among others.”

ADC therefore said when the President announced that Nigeria has turned the corner, we wonder which corner he is talking about. If indeed the economy is improving, or the slightest hope exists in the minds of those who run these businesses that this APC government can improve the economy, why are they closing shop and moving elsewhere?”

ADC asked, citing the example of GlaxoSmithKline (GSK), which it said shut down manufacturing in Nigeria after 50 years.

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