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6 clusters · 23 sources · 37 days · First seen · Last updated

Uber exit from Nigeria sparks labor dispute and Moove exit

Overview

Uber announced it would wind down its Nigerian operations as of September 2, 2024, citing a review of business priorities and investment focus. This decision follows a similar exit from Uganda.

The departure has triggered significant debate. Investigative journalist David Hundeyin alleged that Uber’s 12-year presence was linked to intelligence gathering for the United States, suggesting that movement patterns and location histories of millions of Nigerians served US interests. No public documentation has substantiated these claims.

In response to the exit, the Federal Airports Authority of Nigeria (FAAN) clarified that it was not responsible for Uber’s departure. Managing Director Olubunmi Kuku stated that recent restrictions on e-hailing drivers at airports were intended to address passenger safety and complaints regarding intimidation, rather than to force the company out. Kuku suggested the exit was likely due to Uber’s own economic and regulatory considerations.

Following the shutdown, the Amalgamated Union of App-Based Transporters of Nigeria (AUATON) issued a 14-day ultimatum for Uber to return to negotiations. The union alleges the company failed to follow Nigerian redundancy procedures or consult workers before the shutdown. AUATON is demanding negotiations regarding redundancy and separation payments, outstanding trip earnings, bonuses, and disputed balances, while also raising concerns regarding vehicle-financing and leasing arrangements.

The exit has caused a ripple effect in the local ecosystem. Moove, a Lagos-founded vehicle financing startup, announced plans to exit the Nigerian market following the loss of its primary partner, Uber. Moove’s model relied on Uber’s trip data to monitor driver earnings and facilitate repayments. To manage the transition, Moove will transfer ownership of eligible vehicles, valued at approximately N35 billion, to existing customers, with full ownership granted after October 1, 2026.

Entities

Uber · Nigeria · Ladi Delano · Moove · Olubunmi Kuku

Timeline

  1. [BUSINESS] 2 sources
    Moove exits Nigerian market after six years of operations

    Mobility company Moove is exiting Nigeria after six years, transferring N35 billion worth of vehicles to drivers following the loss of major ride-hailing platforms like Uber.

  2. [BUSINESS] 8 sources
    Moove to exit Nigeria following Uber's market departure

    Moove is exiting Nigeria following Uber’s departure from the country. The startup plans to transfer ownership of N35 billion worth of vehicles to eligible customers by October 2026.

  3. [BUSINESS] 2 sources
    Uber exit from Nigeria sparks labor dispute and market shift

    Uber's exit from Nigeria has sparked a labor dispute with AUATON over driver compensation and opened a $450 million e-hailing market to competitors like Bolt and inDrive.

  4. [BUSINESS] 2 sources
    Uber exits Nigerian and Ugandan markets

    Uber has exited Nigeria and Uganda following a business review, amid rising operational costs driven by economic reforms and fuel subsidy removals in the region.

  5. [BUSINESS] 2 sources
    Nigeria targets shift from technology consumer to producer

    Nigeria aims to transition from a technology consumer to a producer through digital literacy and infrastructure investment, even as ride-hailing giant Uber announces its exit from the country.

  6. [BUSINESS] 11 sources
    Uber exit from Nigeria sparks data sovereignty and intelligence allegations

    Uber’s exit from Nigeria has triggered allegations from journalist David Hundeyin regarding intelligence data collection, while Nigerian airport authorities deny involvement in the company's departure.

Sources

247ureports.com · africa.businessinsider.com · autojosh.com · bahamasspectator.com · blueprint.ng · businessday.ng · dailytrust.com.ng · gistmania.com · haitigazette.com · matazarising.com · nairametrics.com · nationaldailyng.com · newscentral.africa · premiumtimesng.com · primanews.org · punchng.com · qed.ng · techlabari.com · tekedia.com · thenicheng.com · thepodiummedia.com · zalebs.com · zambiamonitor.com

This summary has been updated 3 times: see revision history