Uber exits Nigeria, Uganda with immediate effect; to cut 10% workforce worldwide

Uber shut down its operations in Nigeria and Uganda with immediate effect on Wednesday, with reports on social media saying some riders and drivers were still in the middle of trips when the ride-hailing platform went offline.A Nigerian ride-hailing driver working with Uber sits inside his car and prepares to go offline. (REUTERS)The abrupt shutdown came as the US-based company announced that it was ending services in the two African markets from September 2, without a prior wind-down period.One user on X described the situation as “insane”, saying Uber drivers and riders were mid-trip when the shutdown took effect. Another user said Uber had previously given drivers weeks of notice before exiting markets, allowing them to wind down operations and settle outstanding payments.The reports about riders being mid-trip could not be independently verified by HT, and Uber has not publicly said how ongoing rides were handled when its services were switched off.The company said the decision followed a “thorough review” of its business. An Uber spokesperson told Bloomberg that the move was limited strictly to Nigeria and Uganda and would not affect its operations elsewhere on the continent.“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 support employees and drivers affected by the decision. Its Help Centre in Nigeria and Uganda will remain open until September 23 to deal with outstanding issues.Why did Uber leave Nigeria and Uganda?Uber has not disclosed a specific reason for its decision to leave either country.The exit comes as Uber is undertaking a broader global restructuring. Bloomberg reported that the company plans to eliminate about 3,300 jobs, or roughly 10% of its workforce, as CEO Dara Khosrowshahi looks to redirect resources towards businesses offering stronger returns, including autonomous vehicles.In Nigeria, the ride-hailing company has also faced a difficult operating environment.BBC reported that Uber drivers in the country have long complained that fares on the app were too low amid rising fuel costs, while also objecting to the company’s commission charges. The company has faced increasing competition from rival platforms, including Bolt, inDrive and local operators.Nigerian ride-hailing drivers have staged protests and industrial action in recent years over rising operating costs, low fares and working conditions, according to the BBC.The removal of Nigeria's fuel subsidy following President Bola Tinubu's election in 2023 further increased the cost burden on motorists and consumers. The BBC also reported that motorists faced another increase in petrol prices this year following the US-Iran war.Uber's Africa footprint shrinks furtherUber launched in Lagos in 2014 and expanded its operations in Nigeria over the following years. In Uganda, it began operating in 2016.The latest exits follow Uber's withdrawal from Ivory Coast and Tanzania over the past year. The company now operates in only four African countries — Egypt, Ghana, Kenya and South Africa, according to the BBC.Uber said its decision to leave Nigeria and Uganda did not represent a retreat from Africa as a whole.The company's spokesperson told Bloomberg that Uber remained committed to sub-Saharan Africa, citing continued growth and long-term opportunities in the region.“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.”“No idea why it would not follow the ‘usual’ playbook. Suggests it will never go back.”Uber pledges supportAs Uber shut down its operations in the two countries with “immediate” effect and without prior notice, the company said it would support employees and drivers affected by the decision. It also said its help centre would remain open in Nigeria and Uganda until September 23 to address outstanding issues.(With inputs from Bloomberg and BBC)