By Adeola Kunle
The departure of Uber from Nigeria has created fresh uncertainty for drivers who financed vehicles specifically to operate on the ride-hailing platform, with concerns growing over how they will continue meeting their repayment obligations.
The drivers’ association raised the concern on Thursday, a day after Uber Technologies Inc. officially ended its operations in Nigeria on Wednesday, September 2, bringing its 12-year presence in the country to an end.
Uber said the decision was part of a broader strategy to redirect investment towards markets where it believes it can generate greater value.
A major concern for affected drivers is the financing arrangement between Uber and mobility company Moove. Under their partnership, Moove-financed vehicles were deployed to drivers operating on Uber’s platform. Uber is also one of Moove’s major investors.
Drivers using Moove-financed vehicles for UberGo had previously been required to operate exclusively through Uber. With the platform now gone, questions have emerged over how those drivers will use the vehicles and continue servicing their loans.
The Amalgamated Union of App-Based Transport Workers of Nigeria said affected drivers would have to move to other ride-hailing platforms, particularly Bolt and inDrive.
The union’s Public Relations Officer, Steven Iwindoye, said, “Now they have to migrate officially to Bolt and inDrive.”
However, the union said the transition would not be easy because drivers were already dealing with rising operational expenses, including fuel and vehicle maintenance.
“Look at the condition of our car; many of us don’t even have money to maintain, to take care of our car,” an executive of the union said.
The organisation questioned the sustainability of a ride-hailing model that prioritises market dominance without ensuring that both companies and drivers can remain financially viable.
“What is the essence of you dominating the market when you are not making profit?” Iwindoye asked.
According to the union, drivers had made repeated attempts to engage Uber over issues affecting their businesses but received little response. It said Bolt and inDrive had been more willing to communicate with drivers and their representatives through meetings and interactive sessions.
“Bolt, inDrive, sometimes they reach out to us; we do interactive sessions,” Iwindoye said.
“But on the aspect of Uber, nothing, nothing,” he added.
With Uber no longer operating in Nigeria, Bolt and inDrive are positioned to attract drivers and passengers previously using the platform. The union, however, stressed that simply moving drivers from one platform to another would not resolve the deeper financial difficulties confronting the industry.
It said many drivers were struggling to keep their vehicles in good condition and called for a business environment that would provide sustainable returns for both platforms and drivers.
Uber Maintains Focus on Other African Markets
Uber’s withdrawal from Nigeria was announced as part of a wider review of its international investments.
An Uber spokesperson said in an email that the withdrawal applied specifically to Nigeria and Uganda and would not affect the company’s other operations across Africa.
The company reaffirmed its commitment to sub-Saharan Africa, describing the region as one with “robust growth and long-term opportunity.”
Uber said it was directing its resources towards markets where it could create greater value for drivers through earning opportunities at scale while making it easier for passengers to travel.
The company also said its immediate priority was supporting drivers, riders and employees affected by the withdrawal. It disclosed that it had started communicating with active drivers and would provide them with a token of appreciation during the transition.
The Nigerian exit coincides with a major restructuring within Uber that is expected to eliminate about 3,300 positions, equivalent to roughly 10 per cent of its global workforce.
Uber Chief Executive Officer Dara Khosrowshahi said the restructuring was designed to make the company simpler and faster by reducing management layers and reorganising teams to improve efficiency at its current scale.
The company is also placing greater emphasis on future growth areas such as autonomous transportation and robotaxis, as the mobility industry considers how driverless technology could change the economics of conventional ride-hailing.
Uber’s Presence in Nigeria
Before its exit, Uber had become less prominent than Bolt in its direct engagement with Nigerian drivers.
The company did not have a public relations officer based in Nigeria, relying instead on a third-party public relations firm for communications. It also operated without a country manager.
The number of people employed directly by Uber in Nigeria was not immediately known. Globally, the company has approximately 34,000 employees and operates in more than 70 countries, according to a recent filing with the United States Securities and Exchange Commission.
Uber’s departure from Nigeria follows a series of changes to its African operations.
In January, the company withdrew from Tanzania after years of regulatory disagreements involving fares, commissions and regulatory control.
It also ended operations in Côte d’Ivoire in September 2025 after six years in the country.
In South Africa, Uber stopped offering UberX, its lower-cost service, on September 1, although other Uber services remain available there.
Nigeria had been a significant market in Uber’s African expansion. The company launched in Lagos in 2014 before extending its operations to Abuja in 2016.
Over the years, Nigeria’s ride-hailing sector has expanded into a wider mobility ecosystem involving digital platforms, drivers, fleet operators, vehicle-financing companies and businesses that rely on technology-enabled transportation.
According to Ken Research, Nigeria’s ride-hailing and mobility platforms market was valued at $450m in 2025 and is projected to reach $982m by 2032, representing a compound annual growth rate of 11.8 per cent.
The projected expansion contrasts with Uber’s decision to leave the market and highlights the increasingly selective manner in which global technology companies are directing investment.
Drivers Seek Greater Role in Policy Discussions
The drivers’ union said it was also pushing for greater participation in discussions concerning the regulation and future development of app-based transportation in Nigeria.
It disclosed that it had been involved in policy meetings in Abuja attended by transport commissioners, the Minister of Transportation, Vice-President Kashim Shettima, government agencies and other stakeholders.
According to the organisation, it had submitted its proposals to policymakers and expected the resulting policies to cover the wider transportation sector, including ride-hailing companies.
Uber, however, denied that its decision to leave Nigeria was connected to a recent directive by the Federal Airports Authority of Nigeria concerning e-hailing services at Nigerian airports.
The company said its decision followed an internal assessment of its business priorities and investment strategy.
Economist Links Exit to Operating Environment
Chief Executive Officer of Economic Associates, Dr Ayo Teriba, described Uber’s departure as a development specific to the transportation sector rather than evidence of a general decline in Nigeria’s investment appeal.
Teriba criticised the government’s handling of Uber’s operations at the Murtala Muhammed International Airport in Lagos, arguing that restrictions and charges affecting its airport operations may have played a role in the company’s decision.
“The airport or no airport issue definitely must be one of the factors. When they are in the country, but cannot do airport business, what other business will they be doing? We do not have to create a jungle-like situation and make life difficult for people,” he said.
He also questioned the effect of airport charges and the protection of designated taxi operators on Uber’s business model.
“And if Uber must be paying exorbitant parking fees at airports, what business will they have?” Teriba asked.
Despite his criticism, the economist said Uber’s departure should not be interpreted as proof that Nigeria’s overall investment environment had deteriorated.
“This is sector-specific. And exceptions don’t prove the rule. This is exceptional,” he stated.
Teriba urged the authorities to examine whether the company’s departure could have been avoided and to improve conditions for businesses that remain active in the sector.
“This is about those who manage that sector. The transport sector, in particular, the interface between air transport and road transport. We should not generalise it,” he cautioned.
For Nigerian drivers with outstanding vehicle-financing commitments, however, Uber’s exit has created an immediate challenge: finding alternative platforms capable of providing enough income to keep their vehicles on the road while meeting their financial obligations.
Adeola Kunle
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