Why is Uber pulling out of some African markets?

What the report says

Uber has ended service in Nigeria and Uganda, moves that Al Jazeera says reflect the increasing difficulty of operating ride-hailing platforms in parts of Africa. The company said the decisions followed a review of business priorities and were limited to those two countries. Al Jazeera reported that Uber had spent about 12 years in Nigeria and roughly a decade in Uganda before the September 2 exits.

The article links the Nigerian withdrawal to broader economic pressures, including higher fuel, maintenance and spare-parts costs after President Bola Tinubu’s reforms. It also notes that drivers have long complained about fares and commissions, and that riders and drivers can switch to rival apps. In March, drivers in Lagos and Ogun staged a strike over what they called unsustainable earnings and working conditions. A union representative quoted by Al Jazeera said commission rates, fuel and upkeep left many drivers with very little profit.

Uganda faced a similar set of pressures, according to the report. Drivers there had previously objected to Uber’s commission levels, while competitors such as Bolt and SafeBoda, along with smaller platforms, already had a presence. Al Jazeera said Uber’s exits in Nigeria and Uganda follow earlier departures from Ivory Coast and Tanzania, suggesting a more selective strategy in Africa.

The piece adds that Uber has not said the two markets were unprofitable, but it has said it wants to focus on places where it can support driver earnings and reliable service. As background, ride-hailing companies often depend on balancing passenger demand, driver income and platform fees; when that balance breaks down, market exits become more likely.