Uber has ended its ride-hailing services in Nigeria and Uganda with immediate effect, bringing its operations in both African markets to an abrupt halt. The US-based company stopped its services on Wednesday, September 2. The shutdown came without the usual notice period that is generally provided when Uber leaves a market.

The sudden move also triggered reports on social media that some drivers and passengers were still on active trips when the platform stopped operating.

One user on X called the situation “insane”, claiming that Uber drivers and riders were in the middle of journeys when the service went offline. Another user said the company had previously given drivers several weeks' notice before leaving other markets. Such advance notice allowed drivers to complete their work, settle payments and formally exit the platform.

However, the reports about passengers and drivers being stranded during ongoing trips could not be independently verified. Uber has also not publicly explained how it handled rides that were already in progress when the shutdown took effect.

Uber cites business review for exit

Uber said its decision followed a “thorough review” of its business operations. A company spokesperson told Bloomberg that the decision applies only to Nigeria and Uganda. The spokesperson stressed that the move would not affect Uber's operations in other African markets.

“Uber remains deeply committed to sub-Saharan Africa, where we continue to see robust growth and long-term opportunity,” the spokesperson said, according to Bloomberg. The company also said it would provide support to employees and drivers affected by the shutdown.

Uber's Help Centre services in Nigeria and Uganda will remain available until September 23. The company said the extended support would allow it to address outstanding matters following the closure.

Why did Uber leave Nigeria and Uganda?

Uber has not provided a specific explanation for why it decided to leave Nigeria and Uganda. The decision comes at a time when the company is making wider changes to its global business. Bloomberg has reported that Uber plans to cut around 3,300 jobs, equivalent to roughly 10% of its workforce.

Chief Executive Officer Dara Khosrowshahi is reportedly seeking to shift company resources towards areas that offer stronger returns. Autonomous vehicles are among the businesses receiving greater attention as part of this strategy.

Uber has also faced several challenges in Nigeria, including rising operating expenses and strong competition in the ride-hailing sector.

Nigerian drivers faced rising costs

Uber drivers in Nigeria have repeatedly raised concerns about low fares and high operating expenses. According to the BBC, drivers have complained that fares offered through the platform were not keeping pace with increasing fuel prices. They have also criticised the commissions charged by ride-hailing companies.

The company has faced growing competition from platforms such as Bolt and inDrive, along with several local operators. Nigerian ride-hailing drivers have organised protests and industrial action in recent years. Their complaints have included low earnings, rising fuel and vehicle maintenance costs and concerns about working conditions.

The removal of Nigeria's fuel subsidy after President Bola Tinubu took office in 2023 added further pressure on motorists. The resulting increase in fuel costs affected both drivers and passengers. The BBC also reported that petrol prices increased again this year following the US-Iran war, adding to the financial pressure faced by motorists.

Uber's African presence becomes smaller

Uber first launched its services in Lagos in 2014. It later expanded to other parts of Nigeria. The company entered Uganda in 2016. The latest withdrawals come after Uber also exited Ivory Coast and Tanzania over the past year. As a result, its African footprint has become significantly smaller.

According to the BBC, Uber now operates in four African countries: Egypt, Ghana, Kenya and South Africa. Despite leaving Nigeria and Uganda, Uber has insisted that it is not abandoning the African continent. The company said sub-Saharan Africa remains an important market because of its growth potential and long-term business opportunities.

Sudden shutdown raises questions

The lack of advance notice has raised questions among drivers and other users who were accustomed to Uber's previous exit process. One social media user wrote, “Exiting a market is understandable and Uber has done it many times before. Each time, it gave a few weeks of heads-up, then shut down, paid drivers, offboarded them and closed operations.”

The user added, “No idea why it would not follow the ‘usual’ playbook. Suggests it will never go back.” The abrupt closure therefore marks a significant change from the way Uber has handled some previous market exits.

Uber promises help after closure

Although Uber ended its services immediately, the company said it would continue supporting affected drivers and employees. The company has also kept its Help Centre in Nigeria and Uganda operational until September 23. Users and drivers can use the support system to resolve outstanding matters following the shutdown.

Uber's departure represents another major change in Africa's competitive ride-hailing market, particularly in Nigeria, where the company had operated for more than a decade.