Nigeria: Uber Exits Nigeria After 12 Years Amid 3,300 Global Layoffs

MaTaZ ArIsInG
Dallas, Texas

By Emmanuel Addeh in Abuja and Emma Okonji in Lagos

Ride-hailing giant, Uber, yesterday announced the discontinuation of its operations in Nigeria after 12 years in the country, as part of a broader restructuring of its global business that has also resulted in the layoff of about 3,300 employees worldwide.

The company said it would wind down its ride-hailing operations in Nigeria and Uganda effective September 2, 2026, following what it described as a thorough review of its evolving business priorities and investment focus across the continent.

Uber stressed that the decision was restricted to Nigeria and Uganda and would not affect its operations in other parts of Africa, maintaining that it remained committed to Sub-Saharan Africa where it continued to see strong growth and long-term opportunities, it said in a statement to techeconomy.

“After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” the company said.

“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent. Our immediate priority is supporting drivers, riders, and local team members throughout this transition.

“Uber remains deeply committed to Sub-Saharan Africa, where we continue to see robust growth and long-term opportunity,” Lorraine Onduru, Head of Communications, Uber in East and West Africa, confirmed.

The company’s withdrawal ends a 12-year presence in Nigeria, where Uber launched in 2014 as one of the earliest major foreign ride-hailing operators, helping to transform urban transportation and establish the country’s fast-growing e-hailing industry.

Its exit, however, comes as the company is undertaking a wider global restructuring, which has reportedly affected approximately 3,300 employees, representing about 10 per cent of its workforce.

The global restructuring is expected to reduce smaller teams, flatten management layers and significantly cut back remote working arrangements as the company seeks to streamline its operations.

Uber entered Nigeria at a time when app-based transportation services were still relatively new, adapting its business model to accommodate the country’s cash-driven economy, unlike its predominantly card-based operations in several other markets.

For years, the company set the pace in Nigeria’s ride-hailing industry, establishing relatively strict standards for vehicles and drivers and positioning its service as a premium transportation option for the country’s growing middle class.

But competition soon intensified, with a number of other businesses in the same line started entering the country.

Bolt, formerly known as Taxify, entered the Nigerian market in 2016 and aggressively pursued market share through lower fares and more flexible requirements for vehicles and drivers.

The increasingly competitive market gradually transformed ride-hailing from a premium service into a mass-market commodity, with operators competing aggressively for both passengers and drivers.

Other competitors, including inDrive, further disrupted the market by introducing a model that allowed passengers and drivers to negotiate fares directly, while also operating with more flexible vehicle requirements.

Uber subsequently responded to changing market conditions with Uber Go, a lower-cost service that deployed smaller vehicles, including Suzuki cars financed through mobility financing arrangements.

However, Nigeria’s worsening macroeconomic conditions created additional challenges for the ride-hailing business.

The sharp depreciation of the naira increased the cost of acquiring and financing vehicles, while rising inflation reduced the number of Nigerians able to regularly afford private transportation services.

The removal of petrol subsidy and the subsequent sharp increase in fuel prices also forced ride-hailing operators to increase fares, further weakening demand among price-sensitive consumers. At the same time, drivers increasingly moved between platforms in search of better earnings, as operators continued to charge commissions estimated at between 15 and 20 per cent per trip.

Drivers became less loyal to individual platforms, often choosing whichever operator offered the most favourable fares or incentives at a particular time.

However, Uber clarified that its decision to leave Nigeria was unrelated to the recent directive by the Federal Airports Authority of Nigeria (FAAN) concerning e-hailing operations at Nigerian airports. Asked whether its withdrawal was linked to the FAAN directive, the company simply said: “No.”

“Uber’s decision to discontinue operations in Nigeria was made following a review of its evolving business priorities and investment focus across Africa,” the company said.

“The decision is not related to the recent FAAN directive concerning e-hailing operations at Nigerian airports,” it explained.

Besides, Uber said it was engaging directly with drivers, riders and employees affected by the shutdown and would provide support to those transitioning from the platform.

“We continue to communicate directly and responsibly with affected employees, drivers and riders about what this means for them,” the company said.

The company added that it had contacted active drivers and would extend a token of appreciation to them as they transitioned following the cessation of operations.

“We have been in touch with active drivers to extend a token of our appreciation as they transition over the next period,” the company stated.

Although ride-hailing operations ended on Wednesday, Uber said its rider support channels would remain available for 21 days to address outstanding queries and transition-related issues.

It added that the personal data of Nigerian riders would continue to be handled in accordance with applicable data protection laws and its privacy policies, with information retained only where legally required.

Uber for Business services in Nigeria will also be discontinued as part of the company’s withdrawal, with the firm saying it was engaging affected business partners and customers to support them through the transition.

“As part of Uber’s exit, Uber for Business services will also be discontinued. We are in touch with partners to support them through the transition,” the company said.

Uber’s departure leaves Nigeria’s e-hailing market facing a significant transition, with drivers, riders and corporate customers now expected to increasingly rely on competing platforms operating in the country.

While the company’s exit marks the end of one of the most recognisable international brands in Nigeria’s digital mobility sector, Uber maintained that its decision should not be interpreted as a broader withdrawal from Africa.

The company said it would continue to invest in other Sub-Saharan African markets where it believed it could create sustainable value for drivers and riders at scale.

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