Uber implements feature to request intercity trips in the Rio de Janeiro region

Uber has announced the reduction of approximately 3,300 jobs, which accounts for about one-tenth of its global workforce. This restructuring aims to simplify the management hierarchy and concentrate resources on three key areas: taxi services, delivery, and autonomous vehicles. Furthermore, the proportion of managers will be reduced by 20%.

Simultaneously with the announcement of layoffs, the company has ceased operations in Nigeria and Uganda. Thus, Uber has concluded its 12-year presence in Africa's most populous country and its ten-year operation in Uganda.

CEO Dara Khosrowshahi informed employees that years of growth led to 'more layers, more coordination, more fragmented ownership, and, in some cases, structures that made sense when the company was smaller but no longer align with our current scale.' He added that the resulting savings will be directed towards innovation and further growth.

The restructuring will roughly halve the number of micro-teams of one or two people, reduce the percentage of staff located more than seven levels from the CEO, consolidate separate divisions for restaurant delivery, retail, and white label into a single global, regional, and local structure, and limit remote work to about 1% of the entire staff. The total workforce will decrease to just under 30,000, comparable to the 2021 level.

The company notified users of its decision, stating: 'After careful analysis of our business, we have made the difficult decision to cease operations in Nigeria, effective September 2, 2026.' Customers in Uganda received an almost identical notification.

Reduction to Strengthen Position

These two closures leave Uber in four African markets: South Africa, Kenya, Ghana, and Egypt. Previously, the company exited Côte d'Ivoire in 2025 and Tanzania in February, making these exits the third and fourth on the continent in two years. During this period, Uber's presence in Africa has been halved.

A company representative emphasized that this decision is not final, stating: 'This decision is strictly limited to these two markets and does not affect our operations in the rest of the continent.' He also noted that Uber maintains a deep commitment to Sub-Saharan Africa, where steady growth and long-term opportunities are observed.

The difference between this round of cuts and those during the pandemic is that the core business continues to grow. In the quarter ending June 30, gross bookings reached $58 billion, a 24% increase compared to the previous year, with revenue at $14.2 billion. These reductions are due not to declining revenues, but to the company's strategic choice regarding where it wishes to invest.

Uber's three priority areas explain the decisions in Africa better than local market conditions. The company is actively reorienting towards autonomous robotaxis and has allocated over $10 billion for autonomous vehicle partnerships, directing capital to Avride, Lucid, Nuro, and Rivian. This is a capital-intensive bet that only yields profit in dense, high-value markets with permits for operating driverless fleets.

In the delivery sector, Uber entered the market of Delivery Hero in July, signing a deal that allowed Prosus to realize an exit worth 40 billion Rands. Neither of these strategies suits a price-sensitive market with low margins.

Since Uber does not publish country-specific results for its African markets, the impact of the two exits on revenue is not disclosed. Competition has intensified in Nigeria, with operators facing rising fuel prices, inflation, and currency volatility. In Uganda, local competitors, including SafeBoda and Faras, have gained ground in Kampala. Uber stated that the decision regarding Nigeria is unrelated to the recent directive from the Federal Airports Authority concerning taxi landings at airports. The San Francisco-based company began operations in West Africa's largest economy, Lagos, in 2014, and in Kampala in 2016. Its help center in Nigeria remains available until September 23 to address existing account issues. The company did not specify how many drivers or passengers were affected.

Situation in South Africa

South Africa remains one of the four markets Uber retains, and it is still the largest ride-hailing platform there. Just five months ago, the company made its largest investment commitment here, pledging to invest 5 billion Rands over three years at the South African Investment Conference. These funds will be directed towards expanding the electric vehicle fleet, charging infrastructure, merchant equipment, and new earning opportunities on the platform.

Uber's General Manager for Sub-Saharan Africa, Deepesh Thomas, told TechCentral at the time that this amount represented a combination of new funds and planned expenditures, and he did not hide that the announcement was intended to strengthen the company's position with regulators. He described Uber as 'very optimistic' about South Africa and Sub-Saharan Africa, stating that they 'are seeking further support and engagement with regulators and the national transport ministry for collaborative regulation.'

Nevertheless, Uber's regulatory status in South Africa remains uncertain since March. The amendment to the National Land Transport Act was published in September 2025, requiring platforms to register with the National Public Transport Regulator and granting them 180 days to do so. Bolt applied in November 2025 and received certification by February 27. Uber missed the March 11 deadline and has not officially confirmed having certification to date.

The UberX service is ceasing operations in South Africa, and passengers will need to choose from other available Uber products depending on their location and vehicle options in the area. Uber users in South Africa have only a few days to use the UberX service, as the taxi platform is preparing to completely discontinue this service nationwide.

Uber has officially confirmed that UberX will no longer be available in South Africa starting September 1st. This means that the familiar standard ride category, which has been available on the roads of South Africa for over ten years, will be removed from the platform.

Reasons for Discontinuing UberX

The company first announced the change earlier this year, initially notifying users in Johannesburg about the phased withdrawal of UberX starting in September. At that time, it was unclear whether this change would extend to other parts of South Africa. Uber has now confirmed that the service will be discontinued nationwide.

The company explained this by stating that it is restructuring its products after discovering that many rides were being performed by the same vehicles through Uber Go, UberX, and Comfort. Uber stated that simplifying the product offering will help create clearer categories for both passengers and drivers. Furthermore, the company noted that the existing structure made it difficult to understand the differences between passenger products, and drivers with higher-specification vehicles could not always benefit from these distinctions.

What the Discontinuation of UberX Means for Passengers

For many years, UberX remained one of the most frequently used options on the platform. This service provided passengers with a private ride for up to four people at a standard price. Therefore, starting September 1st, passengers will have to choose from other Uber products available to them, based on their location and transport options in the area.

What Will Happen to Uber Drivers

Uber has reported that drivers will be able to continue working on any product that matches their vehicle's qualifications. These products include Uber, Uber Go, Uber Comfort, Uber Black, UberXL, and Van, as well as Courier (Car & Bakkie). Consequently, the discontinuation of UberX does not mean that drivers will lose the ability to use the Uber platform. However, for passengers, it marks the end of one of the most familiar ride categories in South Africa.