Uber Contributed N34 billion to Nigeria’s Economy in One Year

In 2023, Uber, the prominent ride-hailing service, made a significant impact on Nigeria’s economy, contributing an impressive estimated N34 billion, as highlighted in the recently released Uber Nigeria Economic Impact Report by the research firm Public First.

This informative report was presented during the Lagos Road Mobility Summit, a pivotal event jointly organized by Uber and the Lagos State Ministry of Transport.

The summit, aptly themed “Reimagining an Inclusive Road Safety Strategy,” brought together a diverse group of participants, including government agencies, renowned global safety experts, and key stakeholders from the private sector.

They convened to engage in meaningful discussions regarding the pressing challenges facing Nigeria’s transportation system and road safety.

At the summit, Deepesh Thomas, the General Manager for Uber Sub-Saharan Africa, emphasized that the company’s contributions extend far beyond mere economic figures.

He revealed that Uber riders collectively experienced a substantial consumer surplus valued at nearly N500 billion, resulting from savings in time, costs, and enhanced convenience.

Moreover, the report illuminated the financial benefits for Uber drivers, who collectively earned an additional N6.1 billion in 2023, translating to earnings that were, on average, 34% higher than what they could earn through other available job options.

Further enhancing the narrative, the report highlighted the invaluable flexibility that Uber drivers enjoy.

This flexibility was estimated to be worth N6.3 billion, a significant factor for the 88% of drivers who indicated that it allows them to effectively balance their family responsibilities with their work commitments.

This aspect of driving for Uber not only contributes to their financial stability but also plays a crucial role in their personal lives, illustrating the multifaceted importance of the ride-hailing service in Nigeria.

“It is a key factor for 88 per cent of drivers who said this flexibility helps them balance family responsibilities.

“The report also found that safety and convenience are the primary reasons Nigerians choose the service.

“With 97 per cent of riders citing safety as a key reason for using the app,” Thomas said.

The findings were even more pronounced among women, with 78% confirming that Uber was the safest way for them to get home at night. In addition, 79% of riders agreed that the service helped to reduce drunk driving by offering a reliable way to travel after dark.

Thomas noted that Uber’s presence generates ripple effects beyond individual benefits. According to him, the platform generated nearly N930 million for the nighttime economy and added N5.4 billion in value to Nigeria’s growing tourism sector.

The report also highlighted that riders collectively saved more than 1.8 million hours in 2023, freeing time that could be redirected to personal and professional pursuits.

A recent report by Sensor Tower shows that Bolt has emerged as Nigeria’s most downloaded travel and mobility app, overtaking rivals Uber and inDrive. This ranking highlights the company’s dominance in one of Africa’s largest and fastest-growing transport markets, where millions of riders turn to app-based services for affordable and reliable trips.

Bolt, which serves over 200 million customers worldwide across more than 50 countries, is now the top-ranked app in the travel and mobility category in 23 of those markets.