- Transport Union Slams Abrupt Withdrawal
Global ride-hailing giant Uber has finally explained its decision to pull out of Nigeria, saying the dramatic exit was driven by evolving business priorities and a strategic shift in its investment focus across Africa.
TheMatrix Newspaper had earlier reported that Uber announced that it would wind down operations in Nigeria and Uganda effective September 2, 2026, insisting that the decision was the product of a thorough business review and was not connected to the recent airport ride-hailing reforms introduced by the Federal Airports Authority of Nigeria (FAAN).
The announcement comes amid growing uncertainty in Nigeria’s ride-hailing sector, where drivers have repeatedly protested over fares, commissions and what they described as poor treatment by digital transport platforms.
According to Uber, its departure from Nigeria was essentially a strategic investment decision, with the company choosing to concentrate its resources on markets where it believes it can create greater value for drivers and riders at scale.
“After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” the company said in a statement issued by its spokesperson.
Uber stressed that the decision was limited to the two countries and would not affect its operations elsewhere in Africa.
The company said its investment strategy was evolving and that it was prioritising markets where it could generate sustainable opportunities for drivers while providing seamless mobility services to riders.
“We are focusing our investments on markets where we believe we can add the most value for drivers by providing earning opportunities at scale and enabling riders to go anywhere seamlessly,” Uber said.
The explanation effectively places Uber’s Nigerian exit in the broader context of capital allocation and business priorities, rather than a single regulatory dispute or operational incident.
Drivers Left Facing Uncertainty
Uber said its immediate priority was to manage the transition for drivers, riders and employees affected by the withdrawal.
The company said it was communicating directly with affected employees and would provide details of the arrangements applicable to them.
It also disclosed that it had contacted active drivers and would provide them with a “token of our appreciation” as they transition away from the platform.
The announcement, however, has raised fresh concerns about the thousands of Nigerians who built their livelihoods around Uber’s platform and invested heavily in vehicles and related operating costs.
The development is particularly sensitive given the history of friction between ride-hailing platforms and drivers in Nigeria.
Drivers have protested at different times over fares, commission structures and working conditions, with notable disputes occurring in 2017, 2023 and 2025.
Uber Promises Continued Support For Riders
For riders, Uber said its support channels would remain available for 21 days after the discontinuation of operations.
The company said the extension was designed to address outstanding queries and assist customers with transition-related matters.
While its Nigerian operations are ending, Uber insisted that it has not abandoned the African continent.
“We remain deeply committed to Sub-Saharan Africa, where we continue to see robust growth and long-term opportunity,” the company said.
A Bigger African Retreat
Uber’s Nigerian withdrawal is also part of a wider pattern in the company’s international operations.
Since its launch in 2009, the company has exited 14 countries across Asia and Africa, highlighting the increasingly selective approach global technology companies are taking towards markets where operating conditions, profitability and growth prospects vary significantly.
For Nigeria, Uber’s exit represents a major shake-up in the country’s ride-hailing landscape.
The company entered the Nigerian market with the promise of transforming urban transportation through technology, connecting riders with drivers through its digital platform.
But years of operational disputes, rising costs and regulatory challenges have underscored the difficulty of running a large-scale ride-hailing operation in an economy where both consumers and drivers face intense financial pressure.
Exit Sparks Industry Questions
Uber’s departure is now likely to put the spotlight squarely on other major operators, including Bolt and inDrive.
The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has already condemned Uber’s withdrawal, describing it as unprofessional and a betrayal of drivers who depended on the platform for their livelihoods.
The union said Uber’s departure was carried out without adequate consultation with affected drivers or a structured transition plan to cushion the impact on workers who relied on the ride-hailing platform as a major source of income.
AUATON, in a statement outlining the consequences of the exit, said the development had exposed what it described as fundamental weaknesses in Nigeria’s app-based transport industry.
The union also fired a warning shot at other major ride-hailing platforms, particularly Bolt and inDrive, accusing them of operating business models that place disproportionate risks and costs on drivers while allowing the platforms to enjoy significant profits.
According to AUATON, drivers shoulder virtually all operational expenses, including vehicle acquisition and maintenance, fuel, insurance and security risks, while platforms retain substantial control over pricing and access to passengers.
The union further criticised the classification of drivers as “partners,” arguing that the arrangement effectively shields platforms from employment obligations while leaving drivers without basic social protections.
AUATON maintained that the absence of formal employment contracts has created a precarious working environment in which drivers are treated as low-cost labour despite bearing the financial burden of keeping the transport ecosystem running.
The union warned that the current model was neither fair nor sustainable, urging stakeholders and regulators to rethink the relationship between digital transport platforms and the thousands of Nigerians whose livelihoods depend on them.
It said the Uber episode should serve as a wake-up call for the industry, stressing the need for greater accountability, transparency and protection for app-based transport workers.
