Uber’s exit from Nigeria and Uganda has put a fresh spotlight on the difficult economics of Africa’s ride-hailing industry, but inDrive says the departures should not be read as a verdict on the continent’s mobility opportunity.
Uber’s departure has also raised questions about whether the operating economics of African ride-hailing markets can support international platforms over the long term. In Nigeria, rising fuel prices, inflation and currency volatility have increased operating costs for drivers and platforms, adding pressure to an already competitive market.
Speaking exclusively to Business Insider Africa, Ashif Black, country representative for inDrive in South Africa, said Uber’s exits highlight the difficulty of building a sustainable mobility business across markets where inflation, currency volatility, fuel prices, vehicle financing and maintenance costs can quickly change the economics of a ride.
“The exits highlight that scale alone does not guarantee sustainability in African mobility markets,” Black said.
Uber ended its operations in Nigeria and Uganda on September 2 after reviewing its business priorities and investment focus. The company had operated in Nigeria for 12 years after launching in Lagos in 2014, while its Uganda business had been running for about a decade.
