Uber quits major African markets

A Nigerian drivers’ union has accused the company of operating an exploitative business model and failing to consult workers adequately US ride-hailing company Uber has shut down operations in Nigeria and Uganda, ending a 12-year presence in Africa’s most populous nation and a decade of service in the East African country.

The withdrawals took effect on Wednesday following what Uber described as a “thorough review” of its business.

The company did not disclose how many employees or drivers were affected, but said assistance would be available during the transition.

Uber said the closures were limited to the two markets and that it remains committed to Africa.

The move coincided with a global Uber restructuring involving around 3,300 job cuts, equivalent to roughly 10% of its workforce.

In a message published by the company on Wednesday, CEO Dara Khosrowshahi said the restructuring would reduce costs and free resources for investment in growth and innovation as Uber seeks to “build the autonomous future.” The company launched in Lagos in 2014 and Kampala in 2016.

Its African operations have faced persistent disputes over driver earnings, commission rates, and regulation.

READ MORE: Dutch watchdog fines Uber nearly $1 billion Nigerian drivers held strikes earlier this year over fares they said failed to keep pace with rising fuel and vehicle-maintenance costs.

The Amalgamated Union of App-Based Transporters of Nigeria described Uber’s business model as exploitative and criticized the company for withdrawing without adequately consulting drivers, multiple local outlets reported on Thursday, citing the union’s national spokesperson.

The Nigerian exit also followed a dispute over access to airports operated by the Federal Airports Authority of Nigeria.

Uber denied that the issue prompted its departure, saying the decision reflected changing business priorities and investment plans.

The shutdown leaves Bolt, inDrive, and the government-backed LagRide among Nigeria’s main alternatives.

In Uganda, Uber faced competition from platforms including SafeBoda and Faras, while drivers complained about low fares and high commissions.

Local reports also cited rising operating costs and difficulties retaining drivers.