Global ride-hailing company Uber has ended its operations in Uganda, bringing to a close a 12-year presence in a market that has grown increasingly competitive.
The company announced that it would wind down its operations in Uganda and Nigeria effective Wednesday, September 2, 2026, following what it described as a “thorough review” of its business.
“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 to drivers and riders.
The company said the decision was limited to the two countries and would not affect its other operations in Africa.
Lorraine Onduru, Uber’s Head of Communications for East and West Africa, said the company’s immediate focus was supporting drivers, riders and local team members during the transition.
Support services will remain available for 21 days following the closure.
Ms Onduru said Uber remained committed to sub-Saharan Africa, where the company continues to see “growth and long-term opportunities”.
Uber did not provide specific reasons for its decision to leave Uganda.
Uber entered Uganda 12 years ago, becoming one of the first major app-based ride-hailing services in the country.
Its arrival changed the way many Kampala residents accessed transport, allowing passengers to request rides through a mobile application and connecting them with drivers operating special-hire taxis.
The service initially relied largely on cash payments before the sector evolved to incorporate digital payments and other technology-driven services.
In March 2018, Uber expanded into motorcycle transport with the launch of uberBODA in Kampala.
Uganda became the first country where Uber introduced its motorcycle ride-hailing service, putting the company into direct competition with SafeBoda, which had already established itself in Kampala’s boda boda market.
The company’s expansion came as competition in Uganda’s digital transport industry was gathering pace.
Taxify entered the Ugandan market in 2017 and rebranded as Bolt the following year. The platform subsequently expanded from car-hailing into boda boda and delivery services.
SafeBoda later entered the car-hailing market through SafeCar in 2022, bringing two of the country’s leading digital transport companies into competition across both motorcycles and cars.
Other platforms, including Faras, Yango and Tinka, have also operated in Kampala.
While Uber has not attributed its exit to competition, industry players and analysts have previously pointed to several challenges affecting the ride-hailing business, including operating costs, driver retention and pressure on earnings.
Certified Financial Analyst Alex Kakande cited cases in which drivers abandoned ride-hailing applications and negotiated fares directly with passengers as one of the operational challenges facing platforms.
Uber also faced criticism from some drivers over its commission structure.
In 2019, the Smart Online Drivers Association (SODA) petitioned Parliament over what it described as exploitative practices in the ride-hailing sector.
SODA chairperson Musa Kabunga said drivers were particularly concerned about Uber’s 25 per cent commission, which the association argued was high while passenger fares remained relatively low.
The complaints contributed to protests and the movement of some drivers to competing platforms, according to the association.
High fuel prices and concerns over declining earnings have also been cited by industry players as challenges that can influence whether drivers remain active on particular platforms.
Impact on drivers and riders
Uber’s departure is expected to affect a section of Uganda’s digital transport ecosystem, although the company has not disclosed the number of drivers and riders currently using its platform.
About five years ago, Uber said its vehicle and motorcycle services had created more than 1,000 economic opportunities in Uganda.
The wider ride-hailing industry has since expanded significantly, with thousands of drivers using digital platforms to connect with passengers in Kampala and other urban areas.
SafeBoda, for instance, has previously reported supporting more than 20,000 drivers and riders.
Uber’s withdrawal follows its exit from other African markets, including Tanzania and Côte d’Ivoire in 2025, as the company reviews its operations and focuses on markets it considers commercially viable.
In Uganda, the departure leaves Bolt, Faras and SafeBoda among the most prominent established players, alongside smaller platforms seeking to increase their market share.
