Nigeria’s Ambassador to Mexico, Reno Omokri, has attributed Uber’s exit from Nigeria to the expansion of the country’s public transportation infrastructure, particularly rail services in Lagos and Abuja.
Omokri argued that the growing availability of relatively cheaper rail transportation has changed the dynamics of the Nigerian ride-hailing market by giving commuters alternatives to services such as Uber.
He made the remarks during an appearance on Channels Television.
According to the ambassador, the development of rail infrastructure has made it possible for residents of major cities to travel between key locations at a lower cost, thereby affecting the business model on which ride-hailing companies operate.
Omokri cites Lagos rail expansion
Using Lagos as an example, Omokri pointed to the Blue Line and Red Line rail services, as well as the planned Green Line, as developments that have expanded the city’s transportation options.
He explained that Uber’s model involves providing affordable, mass-market transportation that competes with conventional taxi services.
“I’m going to give you an example of Lagos. The business model that Uber has is that they come into your country, and then they bring about mass low-ticket transportation, so that they price out the regular taxis,” he said.
Omokri noted that the strategy had worked successfully in countries including the United States and the United Kingdom before being introduced to Nigeria.
However, he argued that improvements in Lagos’ transport infrastructure created a different competitive environment.
“But look at what was happening in Lagos. The infrastructural development in Lagos has been so wide, has been so extensive, that it’s now possible for you to get from point A to point B in Lagos at a fraction of the cost, using the blue line, the red line, and soon the green line is coming up on stream,” he said.
Abuja rail also highlighted
Omokri also referenced rail transportation in Abuja, saying commuters could now use rail services to access important destinations, including the airport.
“In Abuja, you can get from anywhere from point A. From your station, from this channel station, you can actually get to the airport in Abuja by rail,” he said.
He consequently argued that the expansion of public infrastructure had made it more difficult for Uber to compete in the Nigerian market.
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“And so Uber could not compete because of the advancement of infrastructure in Nigeria. So these are the things that you should be talking about,” Omokri added.
Public transport changes ride-hailing landscape
Omokri’s argument centres on the impact of expanding public transportation on private mobility services.
With more affordable transport options becoming available in major urban centres, he suggested that commuters who might otherwise rely on ride-hailing services could increasingly opt for rail transportation.
His comments therefore link Uber’s departure from the Nigerian market to a broader shift in the country’s transportation landscape, particularly the expansion of rail infrastructure in Lagos and Abuja.