Uber exits Uganda amid global restructuring

KAMPALA—Global ride-hailing company Uber has announced the closure of its operations in Uganda, ending its services in the country as part of a broader restructuring of its business.

The company said its operations in Uganda and Nigeria would be wound down effective Wednesday, September 2, following a review of its business priorities and investment focus.

“After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” Uber said in a statement.

The company said the decision was limited to the two markets and would not affect its operations elsewhere in Africa.

“Uber remains deeply committed to Sub-Saharan Africa, where we continue to see robust growth and long-term opportunity,” the company said, adding that it would support drivers, riders and local staff through the transition.

The exit leaves thousands of drivers and riders in Uganda facing changes to how they access ride-hailing services, while drivers who depended on the platform for income will have to consider alternative platforms or other sources of livelihood.

Uber did not immediately disclose how many drivers, employees or other workers would be directly affected by the closure in Uganda.

The company said rider support would remain available for 21 days after the shutdown to address outstanding queries and transition-related matters.

It also said customer data would continue to be handled in line with applicable data protection laws and its privacy policies.

“Uber will limit data retention to what is legally required, maintain appropriate security controls, and fulfil ongoing legal obligations and data requests,” the company said.

Global restructuring

Uber’s decision to leave Uganda comes as the company undertakes a wider restructuring aimed at simplifying its management structure and redirecting investment towards its core businesses.

The restructuring includes plans to cut about 3,300 jobs globally, according to reports citing an internal communication from chief executive officer Dara Khosrowshahi.

Mr Khosrowshahi said the company’s rapid expansion in recent years had created additional layers of management and coordination that were no longer appropriate for its current scale.

The restructuring is expected to allow the company to focus more closely on ride-hailing, delivery and autonomous-driving technology.

Uber said its decision to leave Uganda was based on its evolving business priorities and investment focus, with the company seeking to concentrate resources on markets where it can create earning opportunities for drivers at scale and provide seamless mobility for riders.

Pressure on drivers

The withdrawal comes at a time when ride-hailing operators across Africa are dealing with rising operating costs, including fuel, vehicle maintenance and other expenses.

Drivers have also in some markets raised concerns over commissions and earnings, with some moving between platforms in search of better returns.

For Ugandan drivers, Uber’s departure could therefore reshape competition in the local ride-hailing market as rival platforms seek to attract drivers and passengers previously using the service.

Uber’s exit also continues a pattern of retrenchment from some African markets.

The company withdrew from Tanzania in February this year and previously ended operations in Ivory Coast in 2025.

With the latest departures, Uber’s operations on the continent are reported to remain in Egypt, Ghana, Kenya and South Africa.

What next?

The company has not indicated whether drivers or local staff affected by the Ugandan shutdown will receive compensation or other support beyond the transition arrangements.

It said it would continue communicating with those affected as the wind-down progresses.

The closure also raises questions about competition and consumer choice in Uganda’s ride-hailing industry, where app-based transport has become an important part of urban mobility.

For users, the immediate effect will be the loss of access to Uber’s platform, while drivers will have to determine whether to switch to competing services or leave the ride-hailing sector altogether.

Uber’s withdrawal marks the end of a chapter for one of the world’s best-known ride-hailing brands in Uganda and highlights the challenges global technology companies face in balancing expansion with profitability and changing market conditions.