Uber quits Nigeria and Uganda, as Bolt and inDrive eye market share

US ride-hailing group Uber has announced that its operations in two more African countries would cease immediately. “After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria and Uganda, effective 2 September 2026,” Uber said, without giving further details.

Nigeria was one of Uber’s oldest African markets. It entered in 2014, launching first in Lagos. It arrived in Uganda two years later.

The closures are part of a broader pattern. Uber left Côte d’Ivoire in September 2025 and Tanzania in January, after years of friction there over regulated fares and commission ceilings.

Uber sharpens market portfolio

Taken together, the exits suggest Uber is becoming more selective in Africa – with operations continuing in South Africa, Kenya, Ghana, Egypt and Morocco – concentrating on markets where it has sufficient scale and greater control over the economics of each ride.

Nigeria illustrates the problem. Ride-hailing platforms are caught between passengers whose purchasing power has been squeezed and drivers facing much higher costs. President Bola Tinubu’s reforms have improved some measures of macroeconomic stability, but the removal of the fuel subsidy and depreciation of the naira sharply increased the cost of petrol, imported spare parts and vehicle maintenance.

In March, drivers working for Uber, Bolt and inDrive protested against low fares and commissions, arguing that platform prices no longer covered their costs.

The market itself remains large. An Ipsos study commissioned by Bolt this year estimated that Nigeria had about three million gig workers, with nearly a quarter working in ride-hailing. The problem is less a shortage of demand than finding a fare that passengers can afford while leaving drivers with an adequate return.

Can Bolt, inDrive and Lagride benefit?

Uber’s departure creates an opening for rivals.

Estonian company Bolt starts from the strongest position. One 2025 estimate put its share of the Nigerian ride-hailing market at about two-thirds, while its footprint extends to more than 30 cities. Because many drivers already use several apps, Uber’s supply can migrate quickly to competing platforms.

Fuel and maintenance costs can move faster than app tariffs

Privately held international company inDrive offers a different model. Drivers and passengers can negotiate fares rather than relying solely on algorithmically set prices, while its commissions are generally lower. That flexibility may matter in an economy where fuel and maintenance costs can move faster than app tariffs.

Lagos-backed taxi service LagRide is tackling another constraint: access to vehicles. It announced this week that it was adding 400 cars, taking its fleet above 2,000. Its drive-to-own programme combines ride-hailing with vehicle financing, potentially giving it an edge as the cost of buying or financing a car rises.

Active e-hailing service providers in Uganda

Uganda is also more competitive than when Uber arrived. Bolt, Faras and Yango are active, while local operator SafeBoda has expanded from motorcycle taxis into cars. SafeBoda says it now controls more than a third of Uganda’s ride-hailing market and has about 30,000 motorcycle and car drivers on its network.

Uber’s withdrawal from Nigeria and Uganda does not point to financial weakness at the company itself. The group reported 3.9 billion trips in the second quarter, up 18% from a year earlier, while free cash flow reached $2.8bn.

Uber is also cutting about 10% of its corporate workforce and directing more capital towards areas including autonomous vehicles. The African exits therefore look more like portfolio triage than retrenchment.

For Uber, some markets may no longer justify the capital and management attention required to operate at thin margins. For Bolt, inDrive, SafeBoda and others, the challenge is different – that African ride-hailing demand remains attractive if they can build a model better suited to local costs, pricing and transport habits.

Uber said its Nigerian help centre would remain open until 23 September to resolve outstanding disputes.

With AFP