Nigeria: How Uber Exit Affects Drivers, Passengers

What the report says

Uber’s decision to wind down its ride-hailing business in Nigeria has prompted concern among drivers, passengers and industry observers, who say the move could narrow competition, raise fares and reduce income opportunities for app-based transport workers. The report, published by Daily Trust and carried by AllAfrica, says Uber announced on Wednesday that it was ending its Nigeria ride-hailing operations after more than a decade in the market.

The Amalgamated Union of App-Based Transporters of Nigeria criticized the exit, saying drivers were left without enough notice and alleging that Uber’s business practices were unfair to workers. The union also urged rival platforms such as Bolt and InDrive to negotiate more seriously with drivers and improve pay, welfare and safety conditions. Uber did not disclose how many drivers, customers or staff would be affected.

In Abuja, drivers and riders gave mixed reactions. Some said Uber had been an important source of earnings and one of the cheaper ride options, while others said alternative platforms were available and the impact might not be lasting. One driver said high fuel costs and commissions had already made earnings difficult, making the company’s exit less surprising.

The story also notes wider concerns about Nigeria’s ride-hailing market, including the effect of rising operating costs and fuel-price pressures. A CFAO Nigeria executive said Uber helped pioneer app-based transport in the country but that changing market conditions have made the sector harder to sustain.