Business News of Tuesday, 15 September 2026

Source: www.punchng.com

Uber exit opens $450m Nigerian e-hailing market

Bolt, inDrive and other operators are positioning to capture a larger share of Nigeria’s $450m e-hailing market after Uber ended its 12-year operation in the country, opening a new competitive frontier for platforms seeking to expand their rider and driver bases.

The departure of one of the most recognisable names in Nigeria’s app-based transport industry has opened a sizeable gap in a market valued at $450m in 2025, according to Ken Research, with growing urban populations, rising smartphone adoption and changing commuting habits expected to keep demand for app-based mobility on an upward trajectory.

Ken Research projects that Nigeria’s e-hailing market could more than double to $982m by 2032, representing a compound annual growth rate of 11.8 per cent, putting established operators in a race to capture a larger share of a sector whose growth potential remains significant despite persistent challenges around fuel costs, vehicle financing and driver earnings.


“The market share capture conversation is not new to us. It has always been the result of our investment in a market we deeply understand,” Country Representative, inDrive Nigeria, Oladimeji Timothy, told The PUNCH, adding that the company’s understanding of Nigeria and other emerging markets had enabled it to reshape the way ride-hailing operates.

Uber’s exit on September 2 brought to an end its 12-year presence in Nigeria, after the company launched in Lagos in 2014 and expanded its footprint as demand for app-based transportation grew across major urban centres. Its withdrawal has now turned what was once a contest among several platforms into a more intense battle between the remaining operators for users, drivers and the commercial opportunities attached to them.

For Bolt and inDrive, however, the opportunity is not simply about absorbing Uber’s customers overnight. Both companies already have established operations, driver networks and rider bases in Nigeria, giving them infrastructure from which to pursue the newly available demand rather than build their businesses from the ground up.

Bolt, which entered the Nigerian market in 2016, is leaning on that established presence as it seeks to position itself as a ready alternative for drivers and riders affected by Uber’s withdrawal.

“Bolt is well positioned to support riders and drivers looking for an alternative following Uber’s exit because we are not building our presence in Nigeria from scratch,” Senior General Manager, West Africa, Bolt, Teddy Appa-Dankyi, told our correspondent.

The company said its existing network across several Nigerian cities allows drivers to move to a platform with established demand, while its onboarding and operational infrastructure allows it to accommodate additional drivers without compromising its requirements around safety and service quality.

For riders, Bolt is seeking to make the transition less disruptive by relying on an existing range of mobility options and safety features, including driver verification and in-app support. The company’s pitch is that its years of operating in Nigeria have given it a deeper understanding of local commuting patterns and the realities of moving people across different cities.

“We also have an established onboarding and operational infrastructure that allows us to bring new driver partners onto the platform while maintaining the standards we require around safety and service quality,” Appa-Dankyi said.

InDrive is taking a different but equally aggressive route, placing local market knowledge, affordability and driver welfare at the centre of its strategy as it seeks to deepen what it described as an already significant market share across its seven Nigerian cities.

The platform has increasingly differentiated itself through its pricing model and direct interaction between riders and drivers, while expanding beyond conventional car-based ride-hailing to serve different transportation needs. Its latest move into the tricycle segment reflects an attempt to reach commuters seeking cheaper mobility options in cities where affordability remains a critical consideration.

“Our understanding of the terrain, like that of other emerging markets, has positioned us to rewrite how ride-hailing works. Affordable, accessible and safe rides are at the core of our strategy,” Timothy said.

The company is also betting that its relationship with drivers will become an important competitive advantage as platforms fight for the supply side of the market. InDrive said it invested N1bn in driver welfare last year, covering initiatives such as healthcare, school fees for drivers’ children, vacations, fuel vouchers, health checks and seasonal support during Ramadan and Christmas.

Such incentives are becoming increasingly important in Nigeria’s e-hailing industry, where drivers face a punishing combination of high fuel prices, maintenance expenses, vehicle depreciation and financing obligations. While a larger rider pool could translate into more trips, drivers still need sufficient earnings per journey to make the business economically viable.

The pressure is particularly acute for drivers whose vehicles were financed through Moove under arrangements linked to Uber. Vehicles financed by Moove for UberGo were deployed under an exclusive operating arrangement with Uber, meaning the platform’s withdrawal created uncertainty for some drivers who still had to meet their vehicle repayment obligations.

For those drivers, moving to another platform is less a strategic choice than an economic necessity. The Amalgamated Union of App-Based Transport Workers of Nigeria has said affected drivers would have to migrate to competing platforms, particularly Bolt and inDrive, although the union cautioned that switching platforms would not eliminate the broader financial pressures confronting drivers.

That puts driver economics at the heart of the emerging contest. As Bolt and inDrive compete to attract more drivers, their ability to offer consistent demand, competitive earnings and incentives could determine how quickly Uber’s former supply base is redistributed across the market.

InDrive is also expanding its services to make its platform relevant to a wider range of commuters. Timothy said the company’s understanding of the needs of different Nigerian cities had informed plans to introduce more modules, with the recently launched tricycle service designed to provide more affordable transportation options.

The company is simultaneously seeking to strengthen safety and service quality as it expands. It said its measures include driver verification, trip tracking, collaboration with local security agencies, a local incident management hub, and in-app safety features, while its Comfort mode, introduced this year, is part of a broader effort to improve the passenger experience.

“Safety is a key tenet for ride-hailing. It is not an afterthought,” Timothy said, pointing to plans including an annual safety summit intended to address knowledge gaps among industry participants and further strengthen safety standards.

Bolt is similarly emphasising safety and reliability as it seeks to retain existing customers while attracting new ones. The company’s argument is that Uber’s departure creates an opportunity, but its strongest advantage is the scale and infrastructure it has already built over a decade of operating in Nigeria.

“So while Uber’s exit creates an opportunity, our focus is not simply on taking market share,” Appa-Dankyi said. “It is to ensure that drivers who need another platform to continue earning and riders who need a reliable mobility option have a platform that is ready to serve them.”

The scramble for Uber’s former users is unfolding as the government and regulators also examine the implications of the company’s departure. The Federal Competition and Consumer Protection Commission is looking into the circumstances surrounding Uber’s withdrawal, including whether there are outstanding services or obligations to customers that need to be addressed.

FCCPC Chief Executive Officer, Tunji Bello, said the commission was examining the manner of Uber’s exit, particularly issues concerning services that may have remained unfulfilled for customers.

Uber has said its decision to discontinue operations in Nigeria and Uganda was specific to those markets and would not affect its wider African business, where it continues to see growth opportunities. The company said its immediate priority was supporting drivers, riders and employees affected by the withdrawal while redirecting capital towards markets where it believes it can create greater value.

The Nigerian exit also forms part of a broader restructuring at Uber, with the company expected to eliminate about 3,300 jobs globally as Chief Executive Officer Dara Khosrowshahi seeks to simplify the organisation, reduce management layers and prepare the business for its next phase of growth. Its strategy increasingly includes autonomous transportation and robotaxis, reflecting the broader technological shift that could eventually transform the economics of ride-hailing.

For Nigeria, however, the immediate battle remains firmly rooted in the conventional ride-hailing model. Bolt, inDrive and other operators now have an opportunity to convert Uber’s former riders, recruit its drivers and deepen their relationships with commuters at a time when the underlying market is still expanding.

The $450m market that Uber has left behind is therefore more than a vacant space. It is a test of whether competing platforms can turn a sudden disruption into sustained growth while keeping riders satisfied, drivers financially viable, and regulators comfortable with the changing structure of urban mobility.

With the market projected to reach $982m by 2032, the contest between Bolt and inDrive could extend well beyond the immediate scramble for Uber’s customers. It could help determine which platforms emerge as the dominant forces in Nigeria’s next chapter of app-based transportation.