Why is Uber pulling out of some African markets?
Uber’s exits from Nigeria and Uganda highlight the growing challenges of making ride-hailing work in Africa.
Abuja, Nigeria – Uber is leaving Nigeria and Uganda just as the cost of running a ride-hailing business is becoming harder to sustain in parts of Africa.
The company ended its 12-year run in Nigeria and about a decade in Uganda on September 2 , saying the decision followed a “thorough review” of its business priorities and was limited to those countries. Reuters reported that Uber did not provide specific reasons for the Nigeria exit.
But the latest pullouts follow a series of exits from African markets. After six years in Ivory Coast, Uber left last year and ended its Tanzania service in January this year after nearly a decade there.
For drivers, the ability to switch platforms, or leave them altogether, gives them an alternative when commissions or fares become unattractive.