Uber leaves 2 key African markets — and drivers in despair

A week ago, Uber unexpectedly announced its departure from the Nigerian market after spending more than a decade building up its presence in Africa's most populous country. The ride-hailing platform also said it would be winding up its operations in Uganda — also with immediate effect.

With the exit from both Nigeria and Uganda , Uber now remains operational only in a handful of African countries — Egypt, Ghana, Kenya, and South Africa.

"This decision is limited strictly to these two markets and does not impact our operations across the rest of the continent," Uber said in a statement, adding that their "immediate priority is supporting drivers, riders, and local team members throughout this transition," without sharing details on what this assistance would entail.

In the last year, the multinational company also closed shop in Ivory Coast and Tanzania, while also cutting its global workforce by 10%.

Uber has not managed to grow across much of the African market despite its massive global scale. The profit-driven ride-hailing app faces stiff competition from rival platforms, including Bolt, inDrive and SafeBoda, which operate in the Nigerian and Ugandan markets and beyond.

However, it's not only Uber that is having to deal with its frustration over the current situation: Many of its drivers across Africa have been raising complaints about shrinking profit margins amid rising fuel costs, inflation and currency volatility, especially in markets like Nigeria.

In their view, Uber's business model of pocketing around 20% — 25% of any trip fare in commissions is no longer tenable.

Abbas Olamide, an Uber driver in the Nigerian capital Abuja, said the company's overall service was "good," while firmly stressing that the high commission rates were adding greatly to his existing woes .