Nigeria Has Triggered Concerns Among Drivers, Passengers and Industry Stakeholders, With Fears That the Exit Could Reduce

Uber announced on Wednesday that it was ending its ride-hailing operations in Nigeria, bringing to an end more than a decade of operations in the country. The development has drawn criticism from the Amalgamated Union of App-Based Transporters of Nigeria (AUATON), which accused the company of abandoning Nigerian drivers without adequate notice. National Spokesperson of AUATON, Jossy Adaraniwon, described the decision as "unprofessional and irresponsible, alleging that Uber had failed to adequately consider the thousands of drivers who contributed to building its Nigerian operations.

According to him, Uber's exit was partly linked to what he described as an exploitative business model that failed to protect workers' rights or support collective bargaining. He alleged that Bolt and InDrive subsequently adopted similar practices, resulting in what he called a "race to the bottom in Nigeria's ride-hailing sector. Adaraniwon said the situation had contributed to longer passenger waiting times, reduced earnings and a decline in active drivers because of poor working conditions.

He urged Bolt and InDrive to establish genuine collective bargaining mechanisms with AUATON, warning: "If you continue to operate without creating a genuine atmosphere for collective bargaining with AUATON, you will suffer the same fate. He also demanded fair remuneration, welfare packages, transparency, safety measures and decent working conditions for drivers, in line with International Labour Organisation standards. The union further alleged that Uber had played an anti-union role in Nigeria, including petitioning the Federal Ministry of Labour over AUATON's registration.

Adaraniwon also alleged that Uber sponsored individuals within the union to create internal crises and frustrate negotiations with drivers. Meanwhile, Uber drivers and customers in Abuja expressed mixed reactions to the company's departure. An Uber driver, Friday Ayegba, who said he had driven with the platform for almost three years, said the company had become an important source of income for his family.

"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. "Uber normally gives us driver promos that help us adjust our fuel expenditure, but now that they are going, it is going to affect us much," he said.

A customer, Mercy Marcus, also expressed disappointment, describing Uber as one of the most affordable ride-hailing options. "Uber is one of the cheapest means of transportation. Among Bolt, InDrive and Uber, Uber is cheaper," she said.

However, another customer, Kasim Abdullah, said the availability of Bolt, InDrive and emerging platforms meant the exit would not necessarily create a permanent gap. "There is Bolt. There is InDrive, and there are other ones that are coming up now," he said.

Another driver, Emmanuel Ogbor, said Uber's departure would have little effect on him because he primarily used the platform as a side hustle. He also complained about the company's commission amid high fuel costs. "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.

Ogbor said he would instead focus on indigenous platforms, particularly InDrive, which he said had a lower commission. Beyond the immediate concerns of drivers and passengers, the exit has also raised broader questions about competition in Nigeria's ride-hailing market. Uber had contributed significantly to the development of app-based transportation, providing passengers with another option and drivers with an additional source of income.

An Uber-commissioned Public First study estimated that Uber contributed about N34 billion to Nigeria's economy in 2023 and enabled drivers to earn an additional N6.1 billion annually through the platform. The exact number of Nigerian drivers, employees and riders affected by the exit has not been disclosed by Uber. Former Uber communications executive, Francesca Uriri, has expressed deep sadness over the ride-hailing company's decision to exit Nigeria, describing the development as a painful loss after years of building relationships, campaigns and initiatives around mobility and economic empowerment.

Uriri, who uses the Instagram handle, shared her reaction in an emotional post following Uber's announcement. Uriri, who previously served as Head of Communications for West Africa at Uber, said she was "heartbroken" by the company's exit, stressing that her experience with the platform went far beyond simply having a job. Public profiles identify Uriri as a communications professional who previously worked with Uber and as the founder of Leading Ladies Africa.

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.