Uber exits Nigeria, Uganda with ‘immediate effect’ as part of global restructure; shuts down ops mid-rides

Uber shut down its services in Nigeria and Uganda with immediate effect on Wednesday, September 2. However, much to everyone's surprise, the ride-hailing platform went offline abruptly, while riders were still on their trips, according to social media posts.

The company said it was shutting down its services in the two African countries following a global review of its operations, and that the “decision is limited strictly to these two markets”.

It “does not impact our operations across the rest of the continent,” Bloomberg quoted an Uber spokesperson as saying. “Uber remains deeply committed to sub-Saharan Africa, where we continue to see robust growth and long-term opportunity.”

Mid-ride shut down

According to a Hindustan Times (HT) report, there was no prior wind-down period. However, the outlet said it couldn't verify the reports of mid-trip shutdown.

Calling the situation “insane”, an X user claimed that Uber drivers and riders were mid-trip when the shutdown took effect.

“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,” a user said. “No idea why it would not follow the ‘usual’ playbook. Suggests it will never go back.”

However, another claimed that Uber had previously given drivers weeks of notice before exiting markets, allowing them to wind down operations and settle outstanding payments.

There is also no public record of how Uber handles ongoing rides when it switches off services with “immediate effect”.

Why did Uber shut its Nigeria and Uganda ops?

According to a Bloomberg report, the shutdowns in Nigeria and Uganda are part of a wider restructuring of the company under CEO Dara Khosrowshahi.

The company is currently refocusing all its resources on higher-return businesses such as autonomous vehicles. Uber will also cut 3,300 jobs, or about 10% of its workforce.

However, Uber did not give a reason for its decision to exit Nigeria, Africa’s most populous nation, with more than 20 crore people. Double-digit inflation in Nigeria has eroded purchasing power over the past decade, pushing millions into poverty.

According to BBC News, Uber said it would support its employees and drivers affected by the decision, and its help centre would remain open in Nigeria and Uganda until September 23 to address outstanding issues.

Uber shrinks Africa footprint

Uber first entered the African market by launching in Lagos, Nigeria, in 2014, gradually expanding its footprint across the country. Two years later, in 2016, the ride-hailing giant commenced operations in Uganda.

However, these recent closures in Nigeria and Uganda follow the company's exits from the Ivory Coast and Tanzania over the past year.

According to the BBC report, Uber's presence in Africa has now shrunk to just four countries: Egypt, Ghana, Kenya, and South Africa. Despite this contraction, Uber maintains that its departure from Nigeria and Uganda does not signal a broader retreat from the African continent.