Global ride-hailing company Uber has announced plans to wind down its operations in Nigeria and Uganda, effective Wednesday, September 2, 2026. According to Techweez, the exit brings an end to 12 years of operations in Nigeria—where the company first launched in Lagos in 2014—and 10 years in Uganda, marking the departure of two of the earliest African markets the company ever entered.
Global Ride-Hailing Giant Uber Shuts Down Operations in Nigeria and Uganda
The decision follows what the company described as a “thorough review” of its business priorities and investment focus across Africa. In a statement shared with Nairametrics, the company stated: After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026.
Uber clarified that the move is strictly limited to these two markets and does not impact operations elsewhere on the continent, according to BBC reporting. Following the exit, Egypt, Ghana, Kenya, and South Africa remain the only active African countries where the firm operates.
Economic Pressures and Competitive Challenges in the Region
Uber’s departure from Nigeria comes after more than a decade operating in Africa’s largest economy, during which it faced mounting economic hurdles. According to Crypto Briefing, the company encountered soaring inflation, volatile currency swings, and fuel price hikes that increased trip facilitation costs. Additional pressures included the removal of Nigeria’s fuel subsidy after President Bola Tinubu’s election in 2023, as well as subsequent petroleum price rises driven by the United States’ war with Iran, as detailed by the BBC.
Over the years, Nigerian drivers staged protests and industrial action over rising operating costs, low fares, and working conditions. The competitive landscape also intensified after Bolt launched in Nigeria in 2016 and undercut Uber on price, triggering a prolonged price war that squeezed profit margins. Alongside international competitors like Bolt and inDrive, a number of local operators also function within the market. Furthermore, Uber faced regulatory hurdles, including disputes with the Federal Airports Authority of Nigeria, though the company explicitly clarified to Nairametrics that its exit was not connected to recent directives by FAAN regarding e-hailing operations at airports.
Global Restructuring and Impact on Local Employees and Drivers
The shutdown in East and West Africa coincides with a broader global restructuring strategy led by CEO Dara Khosrowshahi to trim operations that do not contribute meaningfully to the bottom line, according to Crypto Briefing. This global effort includes eliminating approximately 3,300 positions, representing roughly 10% of Uber’s worldwide workforce. In addition, internal restructuring measures will shrink the number of managers by 20%, transitioning some personnel into individual contributor roles.
Corporate customers utilizing Uber for Business in Nigeria and Uganda will also see their services discontinued as part of the exit. To assist with the transition, Uber stated that its help center in Nigeria will remain open until September 23 to handle lingering account and payment issues, while general rider support channels will remain accessible for a limited time to address outstanding queries. The company also indicated plans to offer one-time goodwill payments or tokens of appreciation to affected active drivers as they transition away from the platform.
