Ebi Atawodi, General Manager, UBER- Nigeria

In a statement marking its 4th anniversary in Africa, Uber revealed it had 7000 drivers and over 260,000 riders who actively use the app in Nigeria. The company also has more than 1.8 million active users in South Africa and 140,000 users in Ghana.

The Uber economy could run into  billions of Naira

Assuming each of the 260,000 riders used the app once a month  and paid a minimum of a 1000 for each ride, the firm could be generating at least N260,000,000 monthly.  Uber however would share this with the rider.

By implication, one rider could potentially be supporting an average of 3 to 4 family members with income from the job. Uber currently operates in Lagos and Abuja. Government also earns tax revenue and levies from both the company and the drivers

In addition to the revenue the company generates, auto workshops would also witness huge patronage. Uber cars are required to be in pristine condition, and poorly maintained cars are scored low. Uber launched in Nigeria in August 2014, when it started operations in Lagos. The company has since expanded to Abuja.

Uber  which is a ride sharing app was founded in 2009 as UberCab by Garrett Camp, the cofounder of StumbleUpon, and Travis Kalanick, who had sold his Red Swooshstartup for $19 million in 2007. Following a beta launch in May 2010, Uber’s services and mobile app officially launched in San Francisco in 2011, before expanding globally.

The company has of recent witnessed turbulence both in its internal operations and with authorities. CEO and Co founder Travis Kalanick has had to step down due to poor handling of sexual harassment allegations brought by an employee. The city of London had also threatened not to renew the company’s licence due to its inability to provide detailed information about its drivers.

Onome Ohwovoriole has a degree in Economics and Statistics from the University of Benin and prior to joining Nairametrics in December 2016 as Lead Analyst had stints in Publishing, Automobile Services, Entertainment and Leadership Training. He covers companies in the Nigerian corporate space, especially those listed on the Nigerian Stock Exchange (NSE). He also has a keen interest in new frontiers like Cryptocurrencies and Fintech. In his spare time, he loves to read books on finance, fiction as well as keep up with happenings in the world of international diplomacy. You can contact him via onome.ohwovoriole@nairametrics.com


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