Ambassador Reno Omokri has claimed that the rapid expansion of public rail infrastructure in Lagos directly triggered Uber’s decision to exit the Nigerian market.
Speaking on Channels Television, Omokri argued that new transport options cut deep into the ride-hailing company’s profits. He said the success of the Lagos Blue Line and Red Line trains gives people a much cheaper way to travel. According to Omokri, these new train lines dropped Uber’s profit margins and forced the company out.
In his words
“Do you know why Uber left Nigeria? The business model Uber has is that they come into your country and bring about mass low ticket transportation so that they price out the regular taxis. This is what they have done successfully in several countries including the US and the UK.
They tried that in this country and it was succeeding, but look at what was happening in Lagos.
The infrastructural developments in Lagos has been so wide, so extensive that it is now possible for you to get from point A to Point B at the fraction of the cost using the Blue line, Red line and soon the green line is coming up also.
In Abuja, you get from this your station to the airport by rail.
So, Uber could not compete because of the advancement of infrastructure in Nigeria”
This comes after Uber announced it is leaving Nigeria after 12 years of business. The company said the decision came after a review of its business operations but did not give specific reasons for the exit.
