Ride-hailing major Uber has officially shut down its services in Nigeria and Uganda as of September 2, 2026. The sudden departure ends a 12-year presence in Nigeria and an 8-year operational run in Uganda, marking one of the most notable retrenchments by a global tech platform on the continent.

Why Uber pulled the plug on Nigeria and Uganda

1. Severe currency volatility

In Nigeria, persistent macroeconomic instability, driven by severe Naira devaluations and high local fuel inflation, eroded profit margins for both driver-partners and Uber itself. Balancing affordable consumer prices with sustainable earnings for drivers became increasingly untenable in local currency terms.

2. Domestic competition

In both Nigeria and Uganda, Uber faced aggressive competition from agile rivals like Bolt, InDrive, and local motorcycle-taxi (boda boda) platforms like SafeBoda. Key competitors offered lower platform commission rates, cash-dominant flexibilities, and bidding models where drivers and riders negotiate fares directly, which severely squeezed Uber’s market share.

3. Escalating driver friction

Uber encountered repeated friction with local driver unions over high commission fees and safety concerns, leading to protests and legal challenges over driver classification in major cities like Lagos. In smaller markets like Uganda, the high overhead costs of regulatory compliance outweighed the net booking revenues generated.

Is Kenya next on the chopping block?

Despite fears that this signals a complete departure from Sub-Saharan Africa, Kenya is not currently facing an exit.

In an official statement addressing the withdrawals, Uber clarified that the closures are strictly limited to Nigeria and Uganda. The company explicitly highlighted that operations will continue as normal in its remaining key African markets: Kenya, South Africa, Egypt, and Ghana.

Why Kenya remains a priority market

  • Electric Vehicle Integration: Kenya serves as Uber’s flagship market for green transport in Africa, following successful rollouts of electric boda bodas and EV fleets in Nairobi.
  • Higher Market Consolidation: Unlike the fragmented driver market in West Africa, Uber holds a mature and entrenched duo-monopoly alongside Bolt in urban Kenyan hubs.
  • Digital Payment Adoption: High M-Pesa integration in Kenya streamlines lower transaction friction and fraud risks compared to other cash-heavy markets across the region.