Ride-hailing company Uber contributed an estimated N34 billion to Nigeria’s economy in 2023, according to the Uber Nigeria Economic Impact Report released by research firm Public First.
The findings were presented at the Lagos Road Mobility Summit, co-hosted by Uber and the Lagos State Ministry of Transport, under the theme “Reimagining an Inclusive Road Safety Strategy.” The summit brought together government agencies, global safety experts, and private sector stakeholders to deliberate on road safety and transportation challenges in Nigeria.
Benefits to drivers and riders
Uber’s General Manager for Sub-Saharan Africa, Deepesh Thomas, said the company’s impact goes beyond its direct economic contribution.
- Drivers collectively earned N6.1 billion more in 2023, with average incomes 34% higher than their next best alternative.
- The flexibility of the platform was valued at N6.3 billion, with 88% of drivers noting that it helps them balance family responsibilities.
- Riders enjoyed a consumer surplus of nearly N500 billion, thanks to savings in time, cost, and convenience.
Thomas added that safety and convenience remain the top reasons Nigerians choose Uber:
- 97% of riders cited safety as a key reason for using the app.
- 78% of women said Uber is the safest way for them to get home at night.
- 79% of riders agreed that the platform helps reduce drunk driving by offering a safe option for nighttime travel.
According to the report, Uber’s presence supports broader economic activities:
- Nearly N930 million was added to Nigeria’s nighttime economy.
- The platform contributed N5.4 billion to the country’s growing tourism sector.
- Riders collectively saved more than 1.8 million hours in 2023, freeing time for personal and professional use.
Competition in Nigeria’s ride-hailing market
Despite Uber’s growing impact, competition in Nigeria’s ride-hailing sector remains fierce. A Sensor Tower report revealed that Bolt has overtaken Uber and inDrive to become Nigeria’s most downloaded travel and mobility app.
Globally, Bolt serves more than 200 million customers across 50 countries and currently ranks as the top app in the travel and mobility category in 23 markets, underscoring its dominance in Africa’s largest transport economy.
As highlighted in this 9am News report, Uber’s contribution reflects the growing role of digital platforms in shaping Nigeria’s transport sector, even as rivals push aggressively for market share.
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