Uber winds down Nigeria operations after 12 years, cites competition and costs

Uber announced it will wind down its operations in Nigeria effective 2 September 2026 after twelve years in the market, citing intensifying competition, rising operating costs, and growing regulatory pressure. The company said it will provide a one-off "goodwill payment" to drivers to help ease the transition, though the amount was not specified. Uber’s exit leaves the ride-hailing market more concentrated around its biggest rivals Bolt and inDrive, while creating opportunity for local operators such as Lagride and Rida to gain share. However, the economics of ride-hailing remain difficult, with high fuel and vehicle maintenance costs, pressure to keep fares affordable, and the ongoing need to attract and retain drivers. The decision follows a period of clashes with drivers over fares and commissions, including a driver protest in March 2026, and comes shortly after Uber laid off over 3,000 employees globally—about 10% of its workforce—in a restructuring affecting ride-sharing, delivery, and robotaxi divisions. Uber had previously exited Tanzania in January 2026 after regulatory tensions and left Côte d’Ivoire in September 2025 due to operational friction. On 1 September 2026, Uber also discontinued its low-budget UberX service in South Africa, signalling a broader pullback from markets where it sees weak economic value. Riders may face fewer options and potential fare adjustments, while drivers should watch for details on the goodwill payment. Local entrepreneurs could explore filling the gap left by Uber’s departure.

SOURCE: https://techcabal.com/2026/09/02/uber-exits-nigeria/