Key insights
- Uber is exiting four African markets (Nigeria, Uganda, Tanzania, Ivory Coast) due to intense competition from cheaper rivals like Bolt and inDrive, and affordability pressures. This move impacts thousands of drivers and has triggered regulatory investigations. Despite these exits, Uber plans to invest in South Africa, but the overall trend highlights challenges for multinational companies in the region.
Investing.com -- Uber Technologies (NYSE) has withdrawn from four African markets over the past year as affordability pressures and competition from cheaper ride-hailing services intensify.
According to Bloomberg, Uber ended operations in Nigeria and Uganda on September 2, following earlier exits from Tanzania and Ivory Coast.
The withdrawals highlight the challenges facing multinational companies in Africa, where rapid population growth has not necessarily translated into sufficient consumer purchasing power.
In Nigeria, approximately 50,000 drivers relied on Uber’s platform for income, according to the Amalgamated Union of App-Based Transporters of Nigeria.
The abrupt closure has left many drivers struggling to transition to competing platforms, with some reporting substantial declines in earnings.
Uber’s retreat reflects mounting competition from rivals including Bolt, inDrive and Yango, which offer lower fares and more flexible arrangements.
Bloomberg reported that a comparable journey in Nairobi cost 273 Kenyan shillings ($2.10) on Uber, compared with 220 shillings on Bolt.
In Johannesburg, Uber’s cheapest fare for a similar journey was 50 rand ($3), against 39 rand on Bolt.
Uber has traditionally emphasised vehicle quality and passenger safety, but these advantages have proved difficult to monetise in highly price-sensitive markets.
Bolt now operates in eight African countries compared with Uber’s six, with more than one million drivers and couriers across its regional platform.
The exits have also triggered regulatory scrutiny. Nigeria’s Federal Competition and Consumer Protection Commission announced an investigation into Uber’s departure.
Meanwhile, Nigerian mobility startup Moove, valued at $2.1 billion, announced plans on October 8 to exit its home market.
Despite the setbacks, Uber maintains its commitment to Africa, citing more than one billion trips completed across the region and plans to invest over $300 million in South Africa.
Industry forecasts remain positive, with Mordor Intelligence projecting Africa’s ride-hailing market will grow nearly 30% to $3.25 billion by 2031.
However, Uber’s withdrawals underscore the difficulty of balancing competitive pricing, driver earnings, and service standards across emerging economies.
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