Mixed reactions trail Uber’s exit from Nigeria

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.

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.

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

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

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

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.

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.

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

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

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

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.

“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.

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

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.

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

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

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

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.

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

“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.