Ride-hailing giant ends operations in two African markets as it announces plans to reduce its global workforce by 10%….reports Africa Daily News Desk
Global ride-hailing giant Uber has announced the immediate closure of its operations in Nigeria and Uganda, ending its presence in two major African markets as part of a broader restructuring that will also see the company cut about 10% of its global workforce.
Uber said it made the “difficult decision” following a thorough review of its business operations. The company launched in Nigeria in 2014 and expanded to Uganda two years later.
The announcement coincided with a major organisational overhaul outlined by Uber chief executive Dara Khosrowshahi, who said the company was removing management layers, simplifying teams and refining its global location strategy.
“As a result, we will be reducing the size of our team by about 10%,” Khosrowshahi said, adding that the restructuring was aimed at making the company “simpler and faster” while freeing up resources for future investment.
Uber drivers in Nigeria have long complained about low fares amid rising fuel costs and high commission charges, while the company has also faced growing competition from rival ride-hailing platforms.
Uber has withdrawn from several African markets over the past year, including Ivory Coast and Tanzania. Following the exits from Nigeria and Uganda, the company will operate in Egypt, Ghana, Kenya and South Africa.
“This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent,” Uber said in a statement to the BBC.
“We remain committed to sub-Saharan Africa, where we continue to see strong growth and opportunity.”
During its 12 years in Nigeria, Uber expanded beyond traditional car rides. In Lagos, the company launched a boat service in 2019, seeking to offer commuters an alternative to the city’s notorious traffic congestion.
Nigeria’s ride-hailing market has become increasingly competitive over the past decade, with international platforms such as Bolt and inDrive, alongside several local operators, challenging Uber for market share.
Khosrowshahi said Uber’s latest restructuring was not driven by poor business performance, noting that the company’s top line had nearly tripled over the past five years.
However, he said rapid expansion had created greater complexity, including additional management layers, fragmented ownership and slower decision-making.
The company now plans to concentrate more teams in key global and regional hubs, with the vast majority of remote employees expected to move closer to offices as Uber prioritises in-person collaboration.
Uber said the savings generated by a leaner organisation would be reinvested in growth, innovation, drivers, couriers, merchants and the development of autonomous technology.
