Ride-hailing company Uber has announced that it will end operations in Uganda, bringing to a close a decade-long presence in the country’s transport sector.
The company said its services in Uganda and Nigeria will be discontinued effective September 2, 2026, following a review of its business operations and investment priorities.
In a statement, Uber said the decision was difficult but necessary as it continues to reassess where it focuses its resources globally.
“We are writing to share some difficult news. After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,” the company said.
Uber said it would support riders, drivers and local team members during the transition period. Uber entered the Ugandan market in 2016, launching its services in Kampala and introducing a technology-driven approach to transportation.
The platform changed how many Ugandans accessed private transport by allowing passengers to request rides through a mobile application, track journeys in real time and connect with independent drivers.
The service became particularly popular among urban residents looking for convenient alternatives to traditional transport options in a city experiencing rapid population growth and increasing traffic challenges.
For drivers, the platform created new income opportunities by allowing vehicle owners and professional drivers to earn through flexible work arrangements.
Uber’s presence also contributed to the growth of digital payments, app-based services and technology-led customer experiences within Uganda’s transport sector.
Competition and changing market dynamics
Uber’s exit comes amid a rapidly evolving ride-hailing sector in Uganda, where competition among transport platforms has increased over the years.
The company’s operations faced changing market conditions, including competition from other mobility providers and the broader challenges of maintaining technology-driven businesses in emerging markets.
However, Uber has not attributed its withdrawal from Uganda to any single market challenge, instead describing the decision as part of its changing global investment priorities.
Exit is part of wider global restructuring
The departure from Uganda and Nigeria comes as Uber undertakes a broader restructuring of its global operations.
The company has announced plans to reduce its workforce and simplify its organisational structure as it redirects resources toward areas it considers critical for future growth.
One of its major focus areas is autonomous mobility, with Uber investing in technologies linked to driverless vehicles and future transportation solutions.
The company is positioning itself for a future where mobility platforms could connect passengers with multiple transport options, including autonomous vehicles.
Uganda’s ride-hailing sector enters a new phase
While Uber will no longer operate in Uganda, demand for digital transport services is expected to continue growing.
Increasing smartphone adoption, changing consumer expectations and the need for more efficient urban transport solutions continue to create opportunities for technology-driven mobility companies.
For riders who relied on the platform and drivers who built income streams through Uber, the announcement marks the end of a familiar service.
However, industry observers say Uber’s decade-long presence helped accelerate the adoption of digital transport solutions and influenced how Ugandans interact with mobility services.
