Over 2,500 ride-hailing apps have tried—and failed—to compete with Uber, Bolt – drivers’ union

The ride-hailing industry in Nigeria continues to be a challenging environment for local and foreign entrants. Since Uber entered the market in 2014, over 2,500 ride-hailing apps have attempted to compete but have largely failed to maintain a foothold. These mostly local startups struggle to sustain operations due to the overwhelming presence of well-capitalized international firms like Uber and Bolt, combined with rising operational costs and regulatory challenges.

Numerous local apps, including Oga Taxi, Easy Taxi, and T-Cab Rides, were unable to continue operations after their initial launches. These failures demonstrate the volatility and intense competition inherent in Nigeria’s ride-hailing market.

A significant factor contributing to the difficulties faced by these companies is the removal of Nigeria’s petrol subsidy in May 2023, which increased fuel prices by over 400%, substantially raising drivers’ operational costs. This development, coupled with increased vehicle maintenance costs, has deterred drivers and impacted their earnings despite fare increases. The National Bureau of Statistics reports that the road transport sector contracted by 35.9% in 2023 after experiencing growth in the previous year.

Given these challenges, local ride-hailing companies call for government intervention through favorable regulations or financial support to increase their chances of survival. However, the current landscape indicates that without substantial backing or strategic differentiation, new entrants face an uphill battle in the fiercely competitive ride-hailing market in Nigeria.

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