Uber’s African retreat deepens as Nigeria, Uganda join exit list

AI summary
Uber’s decision to wind down operations in Nigeria and Uganda has added two of Africa’s largest ride-hailing markets to the growing list of countries the global mobility company has exited.
This further raise fresh questions about the difficult economics of operating ride-hailing platforms across the African continent.
The company announced on Wednesday that it would end operations in Nigeria and Uganda effective September 2, 2026, following what it described as a thorough review of its business.
The decision came months after Uber shut down operations in Tanzania, where regulatory restrictions and intense competition had made the market difficult to sustain.
With the latest exits, Nigeria, Uganda and Tanzania are the clearest recent examples of Uber’s retreat from African markets.
Nigeria’s 12-year journey comes to an end
Uber launched in Lagos in 2014 and became one of the companies that helped popularise app-based ride-hailing in Nigeria.
Its departure after 12 years marks the end of a long and often difficult attempt to build a sustainable mobility business.
Nigeria offered Uber enormous potential because of its population and congested cities, but the market also exposed the limits of that opportunity.
Rising fuel costs, inflation, currency volatility, vehicle maintenance expenses and pressure from drivers over fares made it difficult to balance affordable prices for riders with sustainable earnings for drivers and the platform.
Uber said its decision followed a review of its business, with operations ending on September
Uganda: another major market closes
Uganda is also part of Uber’s latest African exit. Reports on Wednesday said the company’s decision applies to both Nigeria and Uganda and does not affect its other African operations.
Uber launched in Kampala as part of its wider East African expansion, competing with local and international ride-hailing platforms for passengers and drivers.
Its departure means Uber is now stepping away from another market where the company had spent years trying to establish a sustainable position.
Tanzania: Regulation and competition prove costly
Uber formally exited Tanzania earlier in 2026 after nearly a decade in the country.
The company faced years of regulatory disputes over fare controls and commission limits.
Tanzania’s transport regulator had imposed restrictions that reduced the commission ride-hailing platforms could charge and limited their ability to adjust prices.
Uber’s challenges were compounded by competition from other mobility platforms that adapted more aggressively to local transportation patterns, including motorcycle and tricycle services.
Côte d’Ivoire: An earlier retreat
Côte d’Ivoire has also been identified as an earlier African market from which Uber withdrew, although the timing and circumstances of its departure were different from the latest exits.
Uber was operating in eight African countries by 2022, including South Africa, Nigeria, Kenya, Ghana, Egypt, Tanzania, Uganda and Côte d’Ivoire.
Its withdrawal from several markets suggests that expanding into Africa and building a profitable business there have proved to be very different challenges.
Uber’s departures reveals a broader problem confronting ride-hailing companies in Africa which is high demand does not automatically translate into profitable business.
Platforms are caught between keeping fares affordable, ensuring drivers can earn enough and generating sufficient revenue to cover their own operations.
Uber’s African retreat does not mean the company is abandoning the continent entirely. The company continues to have operations in major markets including South Africa, Kenya, Ghana and Egypt.
The exits from Nigeria, Uganda and Tanzania still mirrors Africa’s mobility economy which is the continent may have millions of potential riders, but scale alone is not enough when the economics of affordability, regulation and operating costs refuse to align.
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About this article
- Length
- 595 words · 3 min read
- Published
- September 2, 2026
- Byline
- Folake Balogun
- Source
- BusinessDay