Fuel Costs and Competition Drive Uber’s African Retreat

Uber’s recent decision to leave Nigeria and Uganda highlights the growing difficulty of running a profitable ride-hailing business in several African markets. The company faces a combination of higher fuel costs, currency depreciation, weaker consumer purchasing power, and intensifying competition in Africa, all of which reduce its profitability. Meanwhile, rivals like Bolt and inDrive have proved more adaptable, tolerating older vehicles, charging lower commissions, and allowing fare negotiation—practices better suited to local conditions. This adaptability allowed Bolt and inDrive to grow in Nigeria, while Uber stagnated. According to Sensor Tower data, Uber had 500,000 active Nigerian users in December 2025, compared with 3.3 million for Bolt. Following its exit from Uganda and Nigeria, and having exited Tanzania and Côte d’Ivoire as well, Uber now operates in only four African countries: Egypt, Ghana, Kenya, and South Africa. Now a publicly listed company prioritizing profitability over market share, Uber appears to be redirecting focus toward robotaxi technology and markets offering stronger returns.