The world’s number one ridesharing platform has stopped operating in Côte d’Ivoire recently. While ownership of Uber remains the same as in the past, its business in this western African country has come to a close.
The ridesharing app explained why it has withdrawn from Côte d’Ivoire, stating that while they regretted the decision, they’re looking forward to doing more business with other nations.
This has ended the six-year presence of Uber in the Ivorian urban mobility market, where it had made its presence since December 2019, appealing to urban consumers seeking secure and reliable road vehicle solutions.
Surprisingly, the exit of Uber from Côte d’Ivoire came after the company had been formally recognized to operate in the country’s market. Read on for the possible reasons for the retreat.
Reasons for the decision
There are various factors that are in play for this decision. Some experts cite tougher competition, specifically from local and regional ridesharing platforms, including Yango, Heetch, and inDrive. Pressure from traditional taxi companies is likewise present.
Another reason for the country exiting the Uber system is the app’s pricing model, which is considered high by some of its customers, limiting its expansion, especially when in competition versus lower-cost alternatives.
Experts are also saying the company faced extreme difficulties adapting its model to the country’s context, hence the strict regulation. This is reminiscent of Uber suspending its activities in Morocco last February 2018, saying that unfortunately, since the company launched in Morocco more than two years ago, there was a lack of clarity on new platforms, such as Uber, and how they match the current model in the industry.
Uber in Côte d’Ivoire
It was in 2019 when Uber entered the Ivorian capital that’s Abidjan, quickly gaining attraction from its urban clientele who are seeking safe and reliable mode of transportation. However, it could be seen today how it failed to consolidate its foothold.
Observers in the industry point a significant mismatch with the needs of drivers. Unlike some of its competitors that offer daily payouts for drivers, Uber’s operating on a weekly payment cycle, which is still good, but is a major disadvantage in a cash-flow-sensitive market where drivers are the ones who cover the daily expenses.
The future ahead
Is it right for the ridesharing platform to exit from Côte d’Ivoire? Of course. For instance, its competitor, Yango from Russia, as well as Heetch from France, and inDrive, join traditional taxis in strengthening their positions and capturing the customers in the Ivorian market. They’ve toppled the 5,000 to 6,000 active drivers for Uber last year.
These companies are also taking over the 10 million trips that Uber has made daily in the capital, as well as the spending that households commit for these rides. Ridesharing media reported that around $7.1 million is spent every day just for Uber rides in this African nation.
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