Uber Leaves Nigeria and Uganda

Uber has pulled out of Nigeria and Uganda. Could the same pressures eventually push it out of Jamaica?

Uber ended 12 years of operations in Nigeria and also shut down in Uganda. The company said the decision followed a review of its business, but didn’t give a specific reason.

However, Nigeria’s ride-hailing market has been squeezed by rising fuel costs, inflation, currency volatility and competition from other apps.

Drivers have also complained that fares are too low and Uber’s commissions are too high.

And in the comments under reports about the exit, riders described another problem: drivers accepting bookings, then asking passengers to cancel the trip and pay them directly in cash.

Sound familiar?

That happens in Jamaica too.

Drivers may collect more money by avoiding Uber’s commission, but Uber earns nothing from that trip. The passenger also gives up some of the app’s protections, including its digital record of the journey.

Uber already had a difficult entry into Jamaica. Taxi operators objected to the competition, while the Transport Authority and Ministry of Transport challenged whether ride-hailing vehicles were operating legally.

Now Uber faces competition from inDrive and Jamaican-owned Amber OnTime, created after Amber acquired a 50 percent stake in OnTime Taxi.

Uber survived the regulatory fight. But if drivers and passengers increasingly conduct rides outside the app, while competitors gain ground, can its Jamaican operation remain worthwhile?

And that’s the bottom line.

Has an Uber driver ever asked you to cancel your trip and pay cash?