About 24 hours after Uber suddenly exited the ride-hailing market in Nigeria, industry rivals like Bolt and inDrive are looking to expand their market share by filling the vacuum.
Uber had operated in Nigeria for about 12 years until September 2, when it threw in the towel due to what the company described as “evolving business priorities and investment focus across the continent”.
While Uber is giving up on the market with over 200 million potential customers, industry rivals say they are doubling down on Nigeria.
inDrive told TheCable that Nigeria remains a key market in Africa, adding that its active user base has grown consistently year-on-year.
The company said it has made significant investments in the Nigerian market and remains committed to further investments in service quality, safety, technology and local communities.
inDrive also said its commitment to Nigeria extends beyond core ride-hailing service.
The company added that it has established a broad local offering, “including our Economy and Courier services”.
Bolt also reaffirmed its commitment to the country, saying Nigeria remains an important market, adding that the company would continue to focus on providing mobility solutions for riders, creating earning opportunities for drivers, and supporting the development of the country’s mobility ecosystem.
The ride-hailing firm said it currently operates across several cities in Nigeria and remains focused on improving the experience for riders and driver-partners as the market continues to evolve.
Teddy Appa-Dankyi, senior general manager, Bolt West Africa, added that the company has “built a strong community of riders and driver partners over the years, and our focus is on continuing to serve them while strengthening our operations and creating more opportunities across the market.”
UBER’S EXIT SHOCKS INDUSTRY RIVALS
inDrive said Uber’s departure came as a surprise, describing the firm as a “strong and significant competitor”.
“Uber has been a strong and significant competitor, and we have always welcomed competition because it drives us to continuously improve our products and services for the benefit of our users,” inDrive added.
inDrive said it is willing to absorb Uber drivers and investors to continue operations, adding that it is developing solutions for mobility investors and fleet owners to help them put their vehicles to productive use and create additional earning opportunities through its platform.
“We also welcome drivers and mobility investors who may be affected by Uber’s exit to join the inDrive platform and continue serving passengers across Nigeria,” the company said.
“Our goal is to provide drivers with flexible earning opportunities while ensuring passengers continue to have access to affordable, reliable and increasingly diverse mobility services.”
On his part, Appa-Dankyi acknowledged that Uber’s exit could create uncertainty in the industry but said Bolt remains focused on the long term.
“However, our focus remains firmly on the long term. We will continue working closely with our drivers, riders, regulators and other partners to contribute to a reliable, accessible and sustainable mobility ecosystem in Nigeria,” he said.
WHAT IS UBER’S COMPETITOR DOING DIFFERENTLY TO SURVIVE?
While Uber uses its platform’s algorithm to set trip fares, inDrive said its business model is different, thus enabling it to operate effectively in emerging markets, where affordability is an important consideration for consumers.
The firm said it charges “one of the lowest service fees in the market, at about 10 percent,” and allows drivers and passengers to determine the final trip fare.
“This model gives both parties greater control and enables them to agree on a price that works for them. Unlike traditional ride-hailing platforms, we do not use algorithms to set ride prices,” the company said.
DRIVERS DEMAND PROTECTION AFTER UBER’S SUDDEN EXIT
The Amalgamated Union of App-Based Transporters of Nigeria (AUATON-NG) called for immediate social dialogue covering displaced Uber riders and drivers who operate across multiple platforms.
In a note to TheCable, Ayoade Ibrahim, general secretary of the association, said the union also called for a national floor on fares, commissions and deactivation procedures consistent with the International Labour Organisation (ICC) 193.
He said technology should work for riders rather than leave them dependent on technology companies that can exit the market after a review by their headquarters.
Ibrahim said Uber’s decision to exit Nigeria is neither a cause for celebration nor nostalgia for drivers, adding that the company left “on its own timetable”.
He said multinational platforms have shown that they may leave markets when the numbers no longer fit their global plans.
Ibrahim said the ICC 193 code would only become effective in Nigeria if the federal government ratifies and domesticates it.
He, therefore, asked the federal ministry of labour and employment, the federal ministry of transportation and airport authorities to incorporate the convention into their licensing frameworks.
Ibrahim also asked riders to organise across apps and traditional transport stages to ensure that the standards are enforced by workers rather than left on the shelf.
“Uber leaving Nigeria after a decade is the case study. Convention No. 193 is the rulebook that should have been in force before the exit, and must now shape whoever takes the work Uber left behind,” he said.
Ibrahim said Uber was able to leave because the rules governing its operations in Nigeria were weaker than the market it created.
“For twelve years the platform organised work, set prices, took commission and decided who stayed online. When global investment priorities shifted toward robotaxis and a slimmer map of countries, it wound down the operation,” he said.
Ibrahim said the ICC 193 was introduced to address a model in which labour could be treated as something that a company could switch off when it exits a market.
The general secretary added that a convention does not stop a company from exiting, but it says that “while the company is present, and in the market it leaves behind, workers are not disposable code”.
