The departure of global e-hailing giant Uber from Nigeria has triggered a wave of reactions, with drivers’ conduct, the company’s business strategy and the failure to sufficiently localise its operations emerging as major talking points.
Uber announced on Wednesday that it was ending its operations in Nigeria after 12 years in the country. The company did not disclose a specific reason for the decision, describing the move as a difficult one while thanking Nigerians who had been part of its journey.
“We know this is heavy news, and we want to express our deepest gratitude to you for being a part of our journey in Nigeria,” the company stated.
The announcement has generated considerable debate among Nigerians, with many questioning why the ride-hailing company decided to leave a market that is projected to be worth about $450 million in 2026.
While Uber is pulling out, rival platforms, including Bolt and inDrive, have indicated that they intend to continue operating in Nigeria.
The Amalgamated Union of App-Based Transporters of Nigeria, AUATON, however, attributed Uber’s departure to what it described as the company's “exploitative foundational business model.”
In a statement signed by its spokesperson, Jossy Adaraniwon, the union accused Uber of failing to adequately consider the interests of the drivers who helped establish and sustain its Nigerian operations.
“There was no consultation or transition plan for the thousands of Nigerian drivers who helped build the platform,” the union said.
The union's reaction has added a labour dimension to the debate, particularly over the relationship between global technology companies and the drivers who depend on their platforms for income.
Investment analyst Bolaji Fasomade offered a different interpretation, arguing that Uber's departure was less about the state of the Nigerian economy and more about its ability to compete in an increasingly challenging market.
“Uber isn’t shutting down because of Nigeria’s economy; it’s shutting down because it can no longer innovate and compete effectively in the Nigerian market,” he said.
‘This Market Punishes Platforms That Assume Trust’
Akin Olaoye also weighed into the debate, arguing that the conduct of some drivers had undermined the very platform on which their businesses depended.
“Uber @uberng is gone from Nigeria after 12 years. I am not surprised.
“This market punishes platforms that assume trust.
“The company built the marketplace, while the driver shows up and asks the rider to go offline, keeping the full fare. Zero work locating the passenger!
“100% of the money treated as entitlement.
“This is not government or economy or market forces; it’s culture! We are too comfortable circumventing the system that made the transaction possible.”
Olaoye said the problem could also affect rival platforms if similar behaviour continues, arguing that drivers and customers need stronger incentives to remain within the formal e-hailing ecosystem.
“Bolt, inDrive & others will inherit the demand and the same leak. Uber also never gave riders a reason to stay honest, no real loyalty, no rewards.
“For example, after 10 trips, a free trip. Customers were not incentivized for refusing side deals.
“Localize or die! They obviously chose not to. Sad, but predictable,” he wrote on X.
Bashir Ahmad Blames ‘Bad Actors’
Former aide to the late President Muhammadu Buhari, Bashir Ahmad, focused on what he described as the growing practice of drivers asking passengers to cancel booked rides and continue the journey offline.
“Did Bad Actors Help Drive Uber Away?
“Uber’s departure from the Nigerian market has generated a lot of mixed debate, as expected, but in my opinion, one factor that may have contributed to the company’s exit is the growing practice among some drivers of asking passengers to cancel booked trips. I am sure the phrase, ‘Please cancel the trip so we can go offline,’ has become familiar to many riders.
“On the surface, this may appear to be a minor inconvenience. Still, when such behaviour becomes widespread, it can pose a serious threat to the sustainability of any ride-hailing platform.
“Many drivers use Uber’s platform only to access customers, benefit from the technology the company has built, and then take those customers off the platform to avoid paying the agreed commission.
“Over time, this created a situation in which the platform bore the cost of attracting and connecting drivers with passengers, while drivers sought to enjoy the benefits without contributing their fair share to the system.
“Hopefully, those ‘let’s go offline’ drivers will now adjust their ways and understand that they have a responsibility to pay their dues. Otherwise, their short-term greed could end up driving Bolt, inDrive and other ride-hailing platforms out of the country as well,” he wrote on X.
Shehu Sani Sees Opportunity for Nigerian Startups
Former lawmaker Senator Shehu Sani, meanwhile, viewed Uber's departure as an opportunity for Nigerian entrepreneurs and existing transport operators to develop home-grown alternatives.
“Uber has left Nigeria. A good opportunity for our local startups to take over the business. Even our taxi unions can create an app and become our Uber. It’s not rocket science,” he stated on X.
Similarly, Dr Yakubu Sani Wudil argued that Uber's departure had not removed the fundamental ingredients required for a ride-hailing business.
“Uber has left Nigeria.
“The drivers are still here.
“The cars are still here.
“The passengers are still here.
“What left is the app connecting them.”
He added:
“So, why can’t some smart Nigerian entrepreneurs build another platform and take over the market?
“The infrastructure is already here. The market is already here.
“Good business opportunity,” he wrote on X.
Uber's exit therefore appears to have opened a new debate beyond the fate of the company itself: whether Nigerian entrepreneurs can build platforms capable of retaining drivers and passengers while addressing the challenges that have confronted international e-hailing operators in the country.
As Bolt, inDrive and other competitors continue their operations, the coming months could reveal whether Uber's former customer base and driver network will simply migrate to rival platforms or whether a Nigerian-built contender can emerge to claim a larger share of the market.