Business Issues News

Uber Shuts Down Operations in Nigeria After 12 Years, Apologises to Shocked Drivers and Commuters

Uber Shuts Down Operations in Nigeria After 12 Years, Apologises to Shocked Drivers and Commuters

Global ride-hailing pioneer Uber has brought its Nigerian operations to an abrupt halt, ending a 12-year presence in the country that fundamentally transformed urban transport across major commercial hubs.

The sudden exit was communicated through an unexpected statement sent directly to registered riders and driver-partners. In the notification, the San Francisco-based technology company stated that following a comprehensive evaluation of its regional business portfolio, it made the difficult decision to shut down operations in Nigeria alongside neighboring Uganda, focusing its investments strictly on African markets with higher margin viability. Acknowledging the sharp disruption to daily routines, the company tendered an apology to commuters and drivers who had relied on the application for over a decade.

The announcement sent shockwaves through Nigeria’s urban transport sector, leaving thousands of app-based drivers and everyday passengers stunned as the platform quickly became inactive. Many drivers reportedly learned of the shutdown while actively completing trips or navigating rush-hour traffic, prompting widespread disbelief across social media and driver network groups.

Industry analysts observe that while Uber helped pioneer the digital gig economy in Nigeria following its historic launch in Lagos, changing macroeconomic realities have increasingly eroded the profitability of app-based transit. Escalating petrol prices, sharp currency depreciation, skyrocketing vehicle maintenance expenses, and compressed commuter purchasing power have squeezed earnings on all sides, turning high transaction volumes into razor-thin operational margins.

The departure narrows Nigeria’s ride-hailing choices, shifting the bulk of urban demand to alternative operators such as Bolt, inDrive, and state-backed platforms like LagRide. In response to the development, the Amalgamated Union of App-Based Transport Workers of Nigeria (AUATON) urged surviving e-hailing companies to treat the exit as a cautionary signal. The union called for an overhaul of pricing models, sustainable driver welfare packages, and institutional collective bargaining to prevent further instability in the nation’s app-based transport ecosystem.

See also  After a spectacular previous year, COVID-19 casts spell on Carbon’s 2020 celebration
[logo-slider]