Uber Technologies (UBER) has ended its ride-hailing operations in Nigeria and Uganda, completing a withdrawal from four African markets in the space of a year as lower-cost competitors Bolt, inDrive and Yango win riders with cheaper fares.

Shares of Uber closed at $71.51 on Friday, up 1.81% on the day, and ticked slightly higher in after-hours trading. The move came as Bloomberg reported fresh details on the company's retreat from several African markets.

Abrupt Exits Leave Thousands of Drivers Without Income

Uber shut down its Nigeria and Uganda operations on September 2, 2026. Those departures followed earlier exits from Tanzania and Ivory Coast over the past year, sharply reducing the company's footprint on the continent.

The pullback has left a hole for drivers who depended on the app. In Nigeria alone, roughly 50,000 drivers used Uber to earn a living, according to the Amalgamated Union of App-Based Transporters of Nigeria. Many of those drivers say the shutdown came without warning. One driver in Abuja told Bloomberg that he learned of the closure through an Instagram post rather than any direct communication from the company. For gig workers, the exits are a case study in platform risk: the flexibility of earning across several apps cuts both ways, since an abrupt shutdown forces a sudden reset of income rather than a gradual wind-down.

Price Becomes the Deciding Factor

Fare cost has proven decisive for many riders. In Nairobi, a typical trip costs 273 Kenyan shillings on Uber, compared with 220 shillings on Bolt. In Johannesburg, Uber's cheapest fare for a similar trip was 50 rand, while Bolt charged 39 rand for the same ride.

Bolt now operates in eight African countries, ahead of Uber's six, and counts more than one million drivers and couriers on its continental platform. inDrive takes a different approach, allowing riders and drivers to negotiate fares directly, while Yango has also expanded its presence across the region.

Uber built its African business around higher vehicle standards and stronger safety features. Those selling points have been difficult to convert into revenue in markets where riders consistently choose the lowest price available.

Regulators and Partners React

Nigeria's Federal Competition and Consumer Protection Commission said it will investigate Uber's departure, and the union representing drivers has contacted the country's labor ministry Uber continues to operate in Nigeria through a local unit of its Delivery Hero food-delivery business, and it remains unclear whether regulators can take any action against the ride-hailing side of the operation. The commission's findings, along with any response from the labor ministry to the union's outreach, are the next developments to watch in Nigeria.

The fallout has also reached Uber's local partners. Moove, a Nigerian mobility startup valued at $2.1 billion, announced on October 8 that it plans to exit the country as well. Moove had built part of its business supplying vehicles to Uber drivers.

Economists point to income levels as the core issue. Equity Group Holdings' chief economic adviser said Uber's realistic market likely begins at around $2,500 in GDP per capita, a threshold that both Nigeria and Uganda fall below. South Africa's GDP per capita sits near $7,500, while Kenya's is about $2,700 — currently the lowest income levels among the countries where Uber still runs.

Uber Signals Continued Commitment to the Region

Despite the exits, Uber says it remains committed to Africa, citing more than one billion trips completed across the continent to date. The company also plans to invest more than $300 million in South Africa, where it recently introduced an electric vehicle option to compete with Bolt's cheaper offerings. Whether that spending can bring fares to levels that compete with Bolt is the concrete test of the pledge.

Growth forecasts for the sector remain upbeat. Mordor Intelligence projects that Africa's ride-hailing market will expand nearly 30% by 2031, reaching $3.25 billion, with rising urbanization and smartphone adoption cited as key drivers.

For now, drivers who lost access to Uber are adjusting to lower earnings on other platforms. One Abuja driver said his weekly income dropped by a third after switching to Bolt and inDrive.

Source: CoinCentral