Uber Exit: Drivers Fear Job Loss, Higher Fares as Bolt Pledges Long-Term Commitment to Nigeria
Uber’s decision to wind down its ride-hailing operations in Nigeria has sparked concerns among drivers, passengers and industry stakeholders, with fears that the move could reduce competition, increase transport costs and affect the livelihoods of thousands of drivers.
The company announced on Wednesday that it would end its ride-hailing services in Nigeria, bringing its more than decade-long presence in the country to an end.
The development has drawn criticism from the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), which accused Uber of abandoning Nigerian drivers without adequate notice.
AUATON National Spokesperson, Jossy Adaraniwon, described the decision as “unprofessional and irresponsible,” alleging that the company failed to adequately consider the thousands of drivers who helped build its operations in Nigeria.
According to him, Uber’s exit was partly linked to what he described as an exploitative business model that failed to adequately protect drivers’ rights or support collective bargaining.
He alleged that other major ride-hailing companies, including Bolt and InDrive, subsequently adopted similar practices, resulting in what he described as a “race to the bottom” in the sector.
Adaraniwon said the situation had contributed to longer passenger waiting times, reduced driver earnings and a decline in the number of active drivers due to poor working conditions.
He urged Bolt and InDrive to establish genuine collective bargaining mechanisms with AUATON, warning that they could face similar challenges if they failed to engage with drivers’ representatives.
The union also demanded improved remuneration, welfare packages, transparency, safety measures and decent working conditions for app-based transporters in line with International Labour Organisation standards.
AUATON further alleged that Uber had opposed its unionisation efforts, including petitioning the Federal Ministry of Labour over the union’s registration.
The union also accused Uber of sponsoring individuals within its ranks to create internal divisions and frustrate negotiations with drivers. The allegations have not been independently verified.
Drivers lament loss of income
Uber drivers in Abuja expressed mixed reactions to the company’s departure, with some saying the platform had become an important source of income for their families.
One driver, Friday Ayegba, who said he had used the platform for almost three years, said Uber earnings had become essential to his household.
“Uber is very important to my family because what I earn from Uber is what I use to support my family,” he said.
Ayegba said he would particularly miss Uber’s driver bonuses, promotions and navigation system, which he described as accurate and reliable.
He said the company’s promotional incentives had helped drivers cope with rising fuel costs.
Another driver, Emmanuel Ogbor, said Uber’s exit would have little effect on him because he primarily used the platform as a side hustle.
Ogbor, however, complained about the company’s commission amid rising fuel prices.
“With the cost of fuel in Nigeria, we are buying fuel for N1,360 now, and they are taking 30 per cent off every ride,” he said.
He said he would instead focus on indigenous platforms, particularly InDrive, which he claimed offered a lower commission.
Passengers react
Passengers also expressed different views about Uber’s departure.
A customer, Mercy Marcus, described Uber as one of the most affordable ride-hailing options available to Nigerians.
“Uber is one of the cheapest means of transportation. Among Bolt, InDrive and Uber, Uber is cheaper,” she said.
However, another passenger, Kasim Abdullah, said the presence of other platforms would help cushion the impact of Uber’s exit.
“There is Bolt. There is InDrive, and there are other ones that are coming up now,” he said.
Uber’s economic impact
Uber’s departure has also raised broader concerns about competition in Nigeria’s ride-hailing market.
The company played a significant role in developing app-based transportation in Nigeria, giving passengers another option while providing thousands of drivers with additional income opportunities.
An Uber-commissioned Public First study estimated that the company contributed about N34 billion to Nigeria’s economy in 2023 and enabled drivers to earn an additional N6.1 billion annually through the platform.
Uber has not disclosed the exact number of Nigerian drivers, employees and riders directly affected by its decision to leave the market.
Former Uber executive heartbroken over exit
Former Uber Head of Communications for West Africa, Francesca Uriri, expressed sadness over the company’s decision, describing the departure as a painful loss after years of building relationships, campaigns and initiatives around mobility and economic empowerment.
Uriri, who is also the founder of Leading Ladies Africa, shared her reaction on Instagram following Uber’s announcement.
“I’m heartbroken in a way that I can’t fully describe. And honestly, I also feel a little silly. Because it’s just work right? Only, it isn’t,” she wrote.
She said the announcement “hit me like a gut punch,” arguing that her experience at Uber went beyond simply having a job.
According to her, the company’s work was about “real people, real stories” and impact.
Uriri recalled some of the people whose stories became part of her experience at the company, including Madam Blessing, whom she described as Uber’s first female driver-partner and a successful fashion entrepreneur.
She also mentioned Tobi, a National Youth Service Corps member who won a new car through an Uber initiative.
Uriri also paid tribute to her former colleagues, describing them as among the most talented, driven and passionate people she had worked with.
Uber exit will reduce options – CFAO Nigeria deputy MD
Kunle Jaiyesinmi, Deputy Managing Director of CFAO Nigeria, said Uber’s decision came as a shock, particularly given the company’s role as one of the pioneers of app-based ride-hailing in Nigeria.
He said Uber’s entry helped establish a new model of urban transportation and encouraged other companies to enter the market.
Competitors such as Bolt, LagRide and other local mobility platforms have since expanded the options available to commuters.
Jaiyesinmi, however, said Uber’s exit would reduce the choices available to passengers, particularly at a time when Nigeria’s population and demand for convenient transportation are increasing.
He attributed some of the difficulties facing ride-hailing companies to rising operating costs, including the removal of fuel subsidies and deregulation of petroleum products.
He also noted that consumers had not experienced a corresponding increase in purchasing power.
According to him, Uber’s departure could particularly affect customers who valued the company’s vehicle certification and quality standards.
He added that drivers previously relying on the platform would need to find alternative ways to deploy their vehicles and generate income.
Bolt reaffirms commitment to Nigeria
Meanwhile, Uber’s major rival, Bolt, has reaffirmed its long-term commitment to the Nigerian market.
Bolt said Nigeria remains an important market and that it would continue working to provide mobility solutions for passengers while creating earning opportunities for drivers.
Teddy Appa-Dankyi, Senior General Manager, Bolt West Africa, said the company recognised the uncertainty created by recent developments but remained focused on its long-term plans.
“Nigeria remains an important market for Bolt, and we remain firmly committed to the country,” he said.
He added that the company would continue working with drivers, riders, regulators and other stakeholders to strengthen Nigeria’s mobility ecosystem.
Uber expands robotaxi operations in London
While winding down its ride-hailing operations in Nigeria, Uber is expanding its autonomous mobility services in other markets.
In partnership with British artificial intelligence company Wayve, Uber unveiled autonomous rides in London.
According to a Reuters report, London became the second European city where Uber offers autonomous rides after the launch of its robotaxi service in Zagreb.
Initially, fewer than 20 Wayve-powered Ford Mustang Mach-E vehicles will be available.
Passengers requesting UberX, Uber Comfort or Uber Electric could be matched with one of the autonomous vehicles at no additional cost.
A licensed operator will initially remain inside the vehicle to monitor the journey, while fully driverless operations are expected in the future, subject to regulatory approval.
Uber’s Global Head of Autonomous Mobility, Sarfraz Maredia, said the launch would help build confidence in autonomous technology among consumers and governments.
ADC blames Tinubu policies for Uber exit
The African Democratic Congress (ADC) has described Uber’s exit from Nigeria, alongside the scaling down of operations by some international companies, as evidence of what it called an increasingly difficult business environment under President Bola Tinubu.
ADC National Publicity Secretary, Bolaji Abdullahi, said the development exposed what the party described as a gap between the government’s claims of economic progress and the experiences of businesses and Nigerians.
The party criticised the government over its reported 0.2 percentage-point improvement in GDP growth, arguing that the figure did not reflect the hardship faced by Nigerians.
The ADC also linked Uber’s departure to rising energy and transportation costs, as well as the impact of fuel subsidy removal and naira devaluation.
The party said its presidential candidate, Atiku Abubakar, had proposed the restoration of a targeted fuel subsidy to reduce the cost of transportation and production.
The ADC further cited figures it attributed to the Manufacturers Association of Nigeria, claiming that hundreds of manufacturing companies and international brands had either shut down or scaled back their operations in the country.
It listed companies including Microsoft, Jumia, Bolt Food, Pick n Pay, Shoprite, GlaxoSmithKline, Sanofi-Aventis, Bayer AG, Procter & Gamble, Unilever and PZ Cussons among businesses that had reportedly reduced or ended some operations in Nigeria.
The party questioned why international companies would continue to scale back their presence if the Nigerian economy was improving.
The Federal Government has continued to defend its economic reforms, saying they are necessary to stabilise the economy and create the foundation for sustainable long-term growth.
