MARKET NEWS

BY  Justice Okamgba and Olasunkanmi Akinlotan

Uber Technologies Inc. will discontinue its operations in Nigeria and Uganda from Wednesday, September 2, as the ride-hailing company reshapes its investment priorities across Africa.

An Uber spokesperson disclosed the decision in an email to The PUNCH, saying the company made it after reviewing its “evolving business priorities and investment focus” across the continent.

The withdrawal is limited to Nigeria and Uganda and will not affect Uber’s operations in its other African markets, the company noted.

“After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” the spokesperson said. “Uber remains deeply committed to Sub-Saharan Africa, where we continue to see robust growth and long-term opportunity.”

Uber entered Nigeria in 2014, launching first in Lagos and later expanding to Abuja in 2016. That launch marked the start of ride-hailing in a market where app-based trips were still new, and Uber quickly became one of the notable players in Nigeria’s urban transport scene.

The company said it was shifting investment towards markets where it believes it can create the most value for drivers by providing earning opportunities at scale and enabling riders to travel seamlessly.

The ride-hailing company said its immediate priority was to support drivers, riders and employees affected by the withdrawal.

The company has also begun communicating with active drivers and said it would provide them with a token of appreciation during the transition. Employees affected by the decision will receive further information on arrangements applicable to them.

Uber’s exit will also extend to its Uber for Business service in Nigeria, with the company saying it was engaging business partners on the transition. Rider support will remain available for 21 days after operations cease to address outstanding queries and transition-related issues, according to the company.

The decision marks a retreat from two African markets as Uber concentrates its resources on locations where it sees greater potential to operate at scale. The company, however, said it remained committed to Sub-Saharan Africa and continued to see strong growth and long-term opportunities in the region.

Uber also dismissed any link between its Nigerian exit and a recent directive by the Federal Airports Authority of Nigeria concerning e-hailing operations at Nigerian airports.

The company said the decision to discontinue its Nigerian operations was made following its review of business priorities and investment focus and was unrelated to the FAAN directive.

Uber entered Nigeria in 2014, initially launching in Lagos before expanding its ride-hailing services to other cities. Its departure leaves drivers and riders to adjust to a market that has become increasingly competitive, with local and international operators competing for passengers and drivers.

The company said data belonging to riders would continue to be handled in accordance with applicable data-protection laws and its privacy policies after the shutdown, while support for riders would remain available during the transition period.