Uber Nigeria: Exits Operations September 2, Cites Strategy

• Uber will discontinue its ride-hailing operations in Nigeria and Uber Uganda discontinues operations effective September 2.
• The decision is attributed to a review of evolving business priorities and investment focus across Africa, not the recent FAAN e-hailing airport directive.
• Uber launched in Lagos in 2014 and states this exit does not affect its operations in other African markets.
• The company commits to supporting affected employees, drivers, and riders through the transition period.
• Rider data will be handled according to applicable data protection laws, with retention limited to legal requirements and security controls maintained.

Uber has explicitly stated that its decision to discontinue operations in Nigeria is entirely unrelated to this recent FAAN e-hailing airport directive.

Ride-hailing giant Uber has announced its decision to discontinue operations in both Nigeria and Uganda, with the exit becoming effective on September 2. This strategic move, which marks a significant shift in the company's African footprint, stems from a comprehensive review of its evolving business priorities and investment focus across the continent. While Uber launched its services in Lagos in 2014, expanding its presence over the years, the company has clarified that this withdrawal is strictly limited to these two markets and will not impact its ongoing operations in other African nations.

The announcement of Uber Nigeria exits operations comes weeks after a notable controversy surrounding e-hailing platforms at Nigerian airports. On July 30, the Federal Airports Authority of Nigeria (FAAN) issued a directive instructing airport managers to prevent Uber and Bolt from operating commercially at airports under its management, pending the finalization of necessary license agreements. This directive quickly led to public complaints regarding increased airport transport fares, prompting Aviation Minister Festus Keyamo to intervene on August 27, directing FAAN to address these concerns. Following this intervention, Bolt was subsequently cleared to resume its operations at FAAN-managed airports.

However, Uber has explicitly stated that its decision to discontinue operations in Nigeria is entirely unrelated to this recent FAAN e-hailing airport directive. The company reiterated that the exit was driven by internal business strategy and investment focus, not by the regulatory challenges faced by e-hailing services at airports. This clarification underscores the company's position that its withdrawal from the Nigeria ride-hailing market changes is a result of broader corporate re-evaluation rather than specific local regulatory hurdles.

As part of its withdrawal, Uber has outlined its plans for managing the transition for its various stakeholders. The company has pledged to communicate directly and responsibly with affected employees, drivers, and riders regarding the implications of this decision. Support for affected employees will be provided throughout the transition, and active drivers have already received a token of appreciation as they navigate this period of change. This commitment extends to the Uber Nigeria driver support transition, aiming to mitigate the impact on those who relied on the platform for their livelihoods.

Crucially, Uber has also addressed its Uber Nigeria data retention policy, assuring that rider data will continue to be handled in strict accordance with applicable data protection laws, privacy requirements, and its own data protection policies. The company affirmed it will limit data retention to what is legally mandated, maintain appropriate security controls, and fulfill all ongoing legal obligations and data requests. Riders with questions about their data privacy, personal data assistance, or privacy requests are encouraged to utilize Uber's dedicated privacy inquiry form. Furthermore, rider support will remain accessible for a period of 21 days following the discontinuation of operations to assist with any outstanding queries or transition-related matters. The company also confirmed that Uber for Business services will be discontinued, with partners being contacted to facilitate their transition.

Compliance officers and legal teams advising companies exiting the Nigerian or Ugandan market must ensure strict adherence to local data protection laws regarding user data retention, security, and the fulfillment of ongoing legal obligations during and after the transition period. This exit also signals potential market shifts and regulatory scrutiny for other ride-hailing or tech platforms in the region.

Source: Original reporting via PREMIUM TIMES