Uber’s decision to wind down its Nigerian operations after 12 years is exposing a deeper problem in the country’s ride-hailing industry, a market that has attracted thousands of digital platforms but has struggled to produce sustainable economics for the companies, drivers or investors behind them.
The US-based mobility company will cease operations in Nigeria on September 2, ending a journey that began in Lagos in 2014 and helped transform how millions of Nigerians book cars and move around the country.
Uber said the decision followed a review of its business priorities and investment focus across Africa, stressing that it remains committed to Sub-Saharan Africa and will continue operating in other markets.
The company also said its exit is unrelated to the recent controversy surrounding e-hailing services at Nigerian airports.
But industry participants say Uber’s departure cannot be viewed in isolation from the increasingly difficult economics of operating a ride-hailing business in Nigeria.
