Mixed reactions trail Uber’s exit from Nigeria

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LAGOS — Mixed reactions have continued to trail the exit of Uber, a global ride-hailing company, from Nigeria, with some residents expressing concern over the impact on commuters and drivers, while others said alternative platforms could fill the gap.

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Some Lagos residents, who spoke with the News Agency of Nigeria, NAN, on Sunday, expressed divergent views on the company’s decision to end its operations in Nigeria.

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NAN reports that Uber announced on September 2 that it was closing its operations in Nigeria and Uganda with immediate effect.

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The company said it took the “difficult decision” following a strategic review of its business priorities and investment focus across Africa.

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Uber began operations in Nigeria in 2014 and expanded to Uganda two years later.

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A journalist, Mrs Florence Okonkwo, said Uber’s exit would worsen transportation challenges for commuters and place additional pressure on other app-based transport operators.

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According to her, many commuters who relied on the platform would have to seek alternatives, while affected drivers could face difficulties, particularly amid unemployment and concerns over earnings in the e-hailing sector.

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“Although Uber has announced financial support for affected drivers, the assistance might not provide sustainable livelihoods for them.

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“If there is a way to accommodate them back into the transport system, it will be a good thing,” she said.

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Okonkwo urged the government to explore measures to support the affected drivers, including encouraging other transport companies to absorb them.

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Similarly, a banker, Ms Edith Nwafor, described Uber’s exit as a setback for Nigerian commuters, stressing the importance of competition in the e-hailing sector.

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“There is the need for a healthy competition among taxis. Having different options allows us, as customers, to compare prices and decide which service works best for us,” she said.

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Nwafor recalled that Uber had sometimes offered lower fares than competing platforms, saying its departure would reduce the choices available to commuters.

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Mrs Funke Ajijala, a businesswoman, also said Uber’s exit would create a vacuum in the e-hailing sector, which other operators might find difficult to fill immediately.

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She said Uber had operated in Nigeria for many years and had become a preferred option for some commuters.

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“Though we have other e-hailing transport companies, the place of Uber has been different,” she said.

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Ajijala added that Uber’s innovative approach to transportation had contributed to the development of the sector and that its absence would be felt.

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However, a journalist with an online publication, Mr Ola Akanni, said Uber’s exit would not have a significant impact on the sector because other e-hailing platforms remained available.

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According to him, affected Uber drivers could migrate to other platforms rather than lose their means of livelihood.

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“We have InDrive, LagRide and other e-hailing operators; so, I do not think Uber’s exit will put anybody out of job,” he said.

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