Uber exit from Nigeria sparks labor dispute and market shift

Uber Technologies Inc. has ceased its ride-hailing operations in Nigeria after 12 years, a move that has triggered a labor dispute and reshaped the local transport market. The Amalgamated Union of App-Based Transporters of Nigeria (AUATON) has issued a 14-day ultimatum for Uber to return to negotiations. The union alleges that the company failed to follow Nigerian redundancy procedures or consult with workers before the shutdown.

AUATON is demanding negotiations regarding redundancy and separation payments, outstanding trip earnings, bonuses, and disputed balances. The union also raised concerns regarding vehicle-financing and leasing arrangements that drivers entered into while operating on the platform.

Uber’s departure leaves a significant opening in Nigeria’s e-hailing market, which is valued at approximately $450 million. Competitors such as Bolt and inDrive are positioned to capture the vacated market share. Industry projections suggest the Nigerian e-hailing sector could grow to $982 million by 2032, driven by rising smartphone adoption and urban population growth.