The company, which commenced operations in Lagos in 2014, announced the decision in a message to its customers, saying it followed a comprehensive assessment of its business operations.
Checks on the company’s mobile application showed that the platform was no longer operational in Nigeria following the company’s decision.
“We are writing to share some difficult news. After a thorough review of our business, we have made the tough decision to wind down our operations in Nigeria, effective 2 September 2026,” the company said.
Uber expressed appreciation to Nigerians who used its platform over the years, describing its role in connecting customers with independent transportation providers as a privilege.
“Since we first launched in Lagos in 2014, it has been an absolute privilege to be a part of your daily life connecting you with independent transportation providers,” the company said.
The company admitted that its withdrawal could affect the daily routines of riders and apologised for any inconvenience the decision might cause.
The exit comes amid a wider restructuring of Uber’s global operations, with the company also announcing plans to cut approximately 3,300 jobs.
According to Chief Executive Officer Dara Khosrowshahi, the planned workforce reduction would largely affect management and coordination positions as the company seeks to streamline its organisational structure.
“Today, we’re making a number of significant organizational changes across Uber. We are removing layers, simplifying team structures, refining our global location strategy, and focusing our people and investments against the biggest opportunities ahead of us,” Khosrowshahi said in a memo to employees.
He explained that the restructuring would reduce the company’s workforce by roughly 10 per cent, adding that affected workers had been informed except in countries where local processes were still required.
Khosrowshahi stressed that the decision was not connected to the individual performance of employees but resulted from changes in the company’s organisational requirements after several years of rapid growth.
Over the last five years, he said, Uber’s revenue had almost tripled as the company broadened its products, businesses and international customer base.
He, however, noted that the expansion had also produced additional management layers, divided responsibilities and increasingly complicated coordination arrangements across the organisation.
Khosrowshahi said the restructuring would help make Uber “simpler and faster” while providing greater capacity for investment in expansion, innovation, drivers, couriers, merchants and autonomous technology.
The latest workforce reduction comes after previous job cuts by the company, including layoffs affecting customer service and human resources departments.
Competition erodes Uber’s market share
Uber’s departure brings its 12-year presence in Nigeria to an end, after its ride-hailing service became one of the country’s leading urban transportation options, particularly in Lagos.
At its peak in Nigeria, the company had more than 5,000 driver-partners and was once the leading ride-hailing platform in the country, introducing several initiatives and campaigns that attracted many upwardly mobile and internet-savvy Nigerians.
The entry and expansion of competitor Bolt, however, changed the dynamics of the market and contributed to a decline in Uber’s share of the ride-hailing business.
Checks according to media reports showed that the company’s market share had dropped considerably in recent times, with many of its former driver-partners moving to competing platforms, including inDrive.
The ride-hailing industry also faced increased competition following the emergence of state-backed platforms such as LagRide, which has established a significant presence, particularly in Lagos, Nigeria’s commercial hub.
A former driver on the Uber platform, Adeniyi Teslim, said the company had gradually developed an elitist image following Bolt’s entry into the market.
As more customers moved to competing services, he said Uber’s share of the market began to decline steadily.
It was also gathered that the company had operated without a country manager since the departure of its former country manager, Tope Akinwumi.
A source familiar with the industry, speaking to media reports, said, “In recent times, the company has been winding down operations gradually, hence I don’t find it surprising.”
Competition, operating costs may have contributed
A transportation expert, Prof. Ibe Callistus, said intense competition and the rising cost of doing business could have contributed to Uber’s decision to leave Nigeria.
He explained that rising fuel prices, which constitute a significant part of transportation operating expenses, may have affected the company’s revenue and profitability.
Callistus, however, maintained that Uber’s departure might have limited consequences for passengers and drivers because rival platforms would likely expand their operations to take advantage of the market gap created by its exit.
“Those working under them would still continue to operate but the fact that they are exiting is a minus. Because I am sure there are Nigerians working for them,” he said.
