Uber has abruptly ceased operations in Nigeria after 12 years, leaving thousands of drivers without a livelihood and passengers stranded across major cities such as Lagos, raising tough questions about the sustainability of app-based transport in Africa's most populous market.
The ride-hailing giant closed shop on Sept 2, catching both drivers and passengers off guard. Commuter Herman Everett found his Uber app completely blank that day.
"It's very very annoying and very frustrating when you need a particular service at a particular time and you can't have it," said Everett.
Drivers say they were equally blindsided. Ahmed Dosumu, who had driven on the platform for eight years, received the exit notice mid-trip while driving to the airport.
"Uber exit will have a direct impact on me personally, because ride hailing is part of my livelihood. That means I'm going to lose the hub that gave me my customer base and income. You get it? It's crazy for them to leave like that without giving us any prompt notice," Dosumu said.
The Amalgamated Union of App-Based Transporters confirmed Uber gave zero notice. Nkechi Abiola, national women's representative of the union said the exit was inevitable given Uber's failure to engage with drivers.
"When I heard that Uber exited, I was like, it's high time. And the reason why I'm saying so is because Uber has failed to listen to the union. So, if you don't have communication with us to assist you with how your app will be sustained in Nigeria then definitely a time like this will definitely come," Abiola said.
Nigeria's consumer protection agency, the FCCPC, has stepped in over unfulfilled contract petitions. The head of the agency said it is following up on petitions filed by Nigerian consumers over unfulfilled contracts before Uber's exit, adding that the investigation is ongoing and further comment could jeopardize it.
Uber attributes the exit to changing global investment priorities. But Francesca Uriri, former head of communications for Uber West Africa, said deep systemic issues plagued the business from the start.
"When we also look at some of the behaviors, I would say of the driver partners, there were several times that the brand witnessed a lot of fraud and that obviously contributed negatively to the business bottom line," Uriri said.
The FCCPC's investigation into consumer petitions continues, but with Uber out of the country, experts warn regulatory enforcement will be a major challenge.
Uber exits Nigeria after 12 years, leaving drivers, passengers stranded
