2014
The Uber platform launches in Lagos, the first city in West Africa on the app.
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The Impact of Uber in Nigeria
Economic Impact Report 2023
Key Facts
Nigeria is at the heart of Africa’s tech revolution. As the nation embraces new innovations, Uber is playing a transformative role in how Nigerians move around their local area.
As the platform marks its 10th anniversary in Nigeria, this is an important moment to reflect on Uber’s journey and the benefits it brings to the country. For this report, Uber commissioned Public First to help gain an in-depth insight into the company’s impact on drivers, riders and the broader economy.
Uber’s Economic Impact
Drivers
Uber creates new opportunities for Nigerians to work flexibly and be their own boss.
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bn
In total, in 2023, we estimate that drivers earn an additional ₦6.1 billion a year in higher income through their use of the Uber app.
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bn
Flexibility has a financial value to drivers. In total, we estimate that this increased flexibility is worth ₦6.3 billion to drivers across Nigeria.
0
%
of drivers agree that this flexibility helps them balance their family responsibilities.
Local Businesses
Uber’s technology boosts local communities, enabling users to support new businesses in their local area.
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bn
In 2023, we estimate that the Uber app created ₦5.4 billion in additional value for the Nigerian tourism industry.
Consumers
The app-based economy makes Nigerians’ lives easier, as the Uber app offers a convenient way of getting to any destination.
The Uber app saves riders over 1.8 million hours a year compared to their next best alternative – equivalent to 4.4 million episodes of the show Tinsel.
0
%
The Uber app makes getting around easier, more comfortable, and quicker. We found that “convenience” was the most important reason why riders choose to use the Uber app (98%), closely followed by “safety” (97%) and then “comfort” (96%).
0
%
of riders agree that the Uber app has helped them to become more independent.
Safety
The Uber app offers adults in Nigeria a safe way to travel, giving riders the confidence to move around their local area.
0
%
of riders say safety is an important reason why they choose to ride using the Uber app.
0
%
of riders agree that having options like the Uber app helps to reduce drunk driving in an area.
Foreword
Uber’s journey in Nigeria has been one of growth, empowerment, and transformation. Since launching in 2014, we have seen the significant impact that e-hailing can have on an economy with untapped potential. Accessible, reliable, and affordable transportation options have not only helped to transform mobility, but also empowered drivers with flexible earning opportunities, helping them achieve greater financial independence in a complex, often challenging, but burgeoning economy.
As we wrap up our first decade in the country, I am proud to say that we have been able to make significant contributions to the Nigerian economy, with an estimated ₦34 billion infused into the local market. At the same time, our platform has enabled drivers to earn an additional ₦6.1 billion annually, demonstrating our commitment to uplifting the individuals and communities within which we operate.
As a global company that is building with a keen awareness of local realities, Uber has been dedicated to its mission to provide low-cost mobility options across every price point, from the everyday rider to the business traveller and package delivery. This led to the introduction of our flagship affordable offering, Uber Go, which offers a 35% lower-cost alternative for riders. This budget-friendly option has changed the game for many Nigerians, enabling access to safe, reliable rides when navigating some of the busiest cities in the world.
Additionally, this improved ease and safety of movement has helped to generate an estimated ₦5.4 billion in additional value for Nigeria’s tourism industry, unlocking new ways for people to explore the country’s rich culture and landscapes.
However, our impact goes beyond numbers. Our priority continues to lie in providing a platform that offers greater earnings potential in an economy where traditional job opportunities can be scarce. By providing opportunities for drivers to make money on their terms, we have been able to contribute to a sense of flexibility and independence that is redefining the way people think about work.
Underpinning all of this growth is our core value – safety. Uber has been able to make great strides in creating a safer environment for both earners and riders. With robust safety features and tailored protocols, we have and will continue to, consistently prioritise the well-being of both riders and drivers, making every trip as secure as possible. Notably, this has meant that 78% of women feel that using the Uber app is the safest way for them to get home late at night, while 79% of riders agree that having access to options like Uber helps reduce incidents of drunk driving.
Looking ahead, Uber is dedicated to furthering its contribution to Nigeria’s growth, development, and innovation. We will continue to provide affordable and reliable transportation options, while also exploring more sustainable mobility solutions in alignment with national sustainability goals. We believe in the power of technology and innovation to create more opportunities for improving transport infrastructure, making it more accessible and affordable. We also aim to have a positive impact on Nigeria’s economy, environment, and people.
Sincerely,
Tope Akinwumi
Country Manager, Uber Nigeria
Introduction
The Transformational Effect of App-Based Rideshare Platforms
Nigeria’s digital transformation
The past two decades have witnessed rapid digital transformation across the African continent. Nigeria is spearheading the charge as Africa’s largest ICT market with over 206 million mobile subscriptions and widespread 5G coverage since 2021.1 In 2023, digital information and communication technology made up 17% of Nigeria’s GDP2, with the overall tech sector worth over $1 billion.3
Mobile digitalisation has reshaped the lives of Nigerians, empowering them to access information, communicate, and share ideas – wherever they are. In 2011, an estimated 11% of Nigeria’s population had access to the internet; a figure that has more than tripled to 36% in 2023.4
The steady proliferation of mobile devices and internet usage has sparked a steep uptick in the development of online platforms. Online information-sharing and rapid communications have allowed Nigerians to innovate faster than ever before. Online businesses of all sizes have flourished in this environment, resulting in an increase in economic revenue from e-commerce. It has also carved out new opportunities for Nigerians to pursue their entrepreneurial passions, by reducing entry barriers to flexible income.
Platform-based ridesharing sits at the heart of these opportunities, unlocking job creation, economic value, and human connection. The sector’s growth over the past ten years has demonstrated the power of app-based mobility and is an indicator of the future growth to come.
The invention of Uber
Since its founding in 2009, Uber has become a cornerstone in the global transportation industry, operating in more than 72 countries and more than 10,000 cities. After its expansion to the African continent in 2013, Uber quickly extended its operations to Nigeria in 2014. Having first launched in Lagos, Uber is now also available in Abuja, Benin City, Ibadan, Kano, Enugu, Warri, Uyo, Owerri and Port-Harcourt.
Maximum Convenience:
Users can place an order whenever it suits them, and then track their ride – eliminating any uncertainty about waiting times or travel routes.
Economic Opportunity:
Drivers and delivery partners benefit from flexible income, and can easily connect with riders and delivery requests. Meanwhile, local businesses enjoy increased access to prospective customers, either through delivery requests or improved mobility options that drop people at their door.
Simplified Navigation:
In-app GPS simplifies navigation for drivers when travelling to new destinations. This built-in feature ensures that they can find the quickest and most efficient journeys, enhancing overall service efficiency.
Integrated Payment Options:
The app’s integrated payment system reduces worries about keeping track of unexpected costs. Users can enjoy a hassle-free payment experience, while drivers benefit from streamlined transactions.
Enhanced Safety and Experience:
A feedback system for riders and drivers encourages better service, accountability, and continuous improvement of the platform’s offerings.
Uber’s Impact in Nigeria
Nigeria is known for its vibrant atmosphere, from the commercial hub of Lagos to the dynamic entertainment scene of Port Harcourt. Above all, Nigerians are movers, characterised by their entrepreneurial spirit and fast-paced lives as they propel the nation’s rapid urbanisation and economic growth.
Uber has demonstrated that it is in touch with its consumers and drivers by aiming to create products and services that work for Nigerians:
Rides
UberX
Original Rideshare Option
UberX Priority
Quicker Rideshare Option
UberX Share
Affordable Option
Uber Comfort
Premium Option
Uber Go
Affordable Option
Uber Package
Peer-to-peer package delivery Option
Uber Moto
Motorbike option, available in Ibadan
Uber for Business
Corporate Account Option
Timeline
2016
The Uber app extends its services to Abuja, Nigeria’s capital and the 400th city worldwide to gain access to the Uber app.16
2019-2021
The Uber app expands into three additional cities: Benin City; Ibadan; and Port Harcourt.
2021
Uber launches its flagship low-cost product offering, UberGo in Lagos, making use of fuel-efficient hatchback vehicles.
2021
Uber Package launches in Lagos, allowing users to send parcels from one place to another.
2022
Uber Moto launches in Ibadan, providing a low-cost option for users. The Uber app expands to Kano, Enugu, and Warri.
In order to fully examine Uber’s impact in Nigeria, Public First has performed a number of calculations to capture its contributions. This considers driver earnings on the Uber platform, as well as the wider indirect and induced multiplier effect created through the platform’s wider activities. We found that Uber catalyses significant economic growth for the country. Overall, we estimate that Uber contributed ₦34 billion to the Nigerian economy in 2023 alone.
Uber’s Impact:
Drivers
Uber creates new opportunities for Nigerians to get ahead
Nigeria’s rapidly developing economy is saturated with people who want to be their own boss. Latest statistics suggest that 87.3% of the population are self-employed and 92.3% of the workforce are engaged in informal employment.5 This reinforces that flexible employment opportunities play a critical role in facilitating Nigeria’s economic growth and empowering individuals to take charge of their own lives.
However, as the workforce becomes increasingly connected, we are entering a new age of tech-enabled entrepreneurship. App-based earnings offer the next generation of flexible work, enabling Nigerians to make money on their own terms.
Drivers on the Uber app share this entrepreneurial drive and value the flexibility that driving on the app offers. The majority of drivers combine driving with other responsibilities such as another form of employment or caregiving. The Uber app enables drivers to earn money when they want and where they want.
How does Uber support Nigeria’s entrepreneurial spirit?
We wanted to understand what had originally motivated drivers to start earning through the Uber app. We found that:
0
%
of drivers chose to drive with Uber over other earning opportunities because of the ability to be their own boss.
0
%
of drivers chose to drive with Uber over other earning opportunities because it enables them to earn money quickly or in an emergency.
0
%
of drivers chose to drive with Uber over other earning opportunities because they enjoy driving.
And when we asked drivers to write in their own words why they chose to drive with the app, one answer came back more than any others: flexibility.
80% of drivers said that the Uber app provides significantly more flexibility than their past earning ventures. This schedule flexibility allows drivers to combine app-based activity with other income streams. According to our research:
0
%
of drivers reported having at least one other responsibility.
0
%
of drivers reported that they have an additional full-time or part-time job.
0
%
of drivers reported that they combine driving with being an entrepreneur/business owner.
0
%
of young drivers (aged 18 – 34) combined app-based work with their studies.
What other responsibilities do you combine with your app-based work, if any?
Flexibility is therefore especially important to drivers. The majority of partners said that they would rather retain the right to choose their own hours, even if the alternative was an increase in earnings. Having calculated the earnings that drivers would sacrifice to retain control over their schedule, we estimate that this increased flexibility is worth ₦6.3 billion to drivers across Nigeria.
It’s also clear that drivers enjoy the autonomy and entrepreneurial opportunities associated with app-based work.
0
%
of drivers agreed that app-based work has given them a feeling of independence.
0
%
of drivers agreed that app-based work provided them with dignity.
0
%
of drivers agreed that app-based work has provided them with an opportunity to grow or start a business.
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How does Uber enable more people to earn a living?
The Uber app also offers financial freedom for drivers, allowing them to earn money when they need it. With inflation at its highest in decades, many adults in Nigeria are currently feeling financial pressures. According to our research, 43% of online adults in the country feel that they usually only have enough earnings to cover the costs of essentials. Ride-hailing therefore gives individuals a useful way to earn more money, at any hour of the day.
When asked:
0
%
of drivers reported that the rising costs of goods and services were a key reason why they chose to start using the platform.
0
%
of drivers said that their earnings through using the Uber app have made them feel more financially secure.
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%
of drivers said that apps like the Uber app provide people with a financial cushion when the economy is struggling.
0
%
of drivers said driving using the Uber app can help people cover their bills during the cost of living crisis.
The speed at which drivers can start earning through the Uber app is therefore particularly important, as it helps them to alleviate financial struggles right away:
0
%
of drivers said they enjoy interacting with passengers.
0
%
of drivers said that they have used earnings made from using the Uber app to cover the cost of their bills.
0
%
of respondents reported that operating on the Uber app has helped them get through a period of unemployment after being made redundant.
Overall, the Uber platform has catalysed significantly higher earnings for many drivers. We estimate that drivers earned an additional ₦6.1 billion a year in higher income through Uber in 2023.
Safety First:
Driver Partner Initiatives
In the past five years, Uber has organised several initiatives placing health and safety at the centre of their relationship with driver partners. In partnership with AXA Mansard, Uber has arranged safety workshops facilitated by law enforcement officers and health & safety specialists aimed at raising awareness on general road safety and navigating customer-driver relationships in a safe way.
Driver partners were guided through sessions on stress management, how to operate Uber’s in-app safety features, and accident prevention and were reminded to keep their valuables out of sight and take regular breaks while operating.
Uber also provided complimentary health checks, including eye tests, blood sugar tests, and blood tests for each of the drivers in attendance to ensure all drivers are healthy and capable of operating their vehicle.
Urbanisation and development have led to more vehicles on the road than ever, resulting in higher levels of traffic and a steady increase of road accidents in recent years. Aligned with Nigeria’s national vision for making roads safe for all users, Uber is doing its part to promote safety among driver partners and bring down fatal and non-fatal injuries.
Beyond road safety, Uber is prioritising the safety of driver partners by ensuring they have access to the healthcare they need. Earlier in 2024, Uber partnered with Healthtracka to provide free self-sampling cervical cancer tests for female drivers. With over 35 million women at risk of cervical cancer in Nigeria, early detection is key. The HPV Self-Sampling kit allows women the flexibility of testing at their own convenience and empowers them to take charge of their own health.
Uber’s Impact:
Local Businesses
Uber’s technology connects Nigerians to their communities
SMEs are the backbone of Nigeria’s economy, contributing 48% of the national GDP.6 Nigeria’s digital revolution stands to turbo-charge these enterprises, helping to connect customers and their spending power to businesses across the country.
This is typified by Uber’s innovations, which offer significant spillover impacts on the wider economy. The Uber app connects Nigerians to their communities, helping them travel longer distances, and discover places they haven’t gone before. This in turn enables Nigerians to visit new shops, restaurants, and cafés, thereby boosting the local economy.
How does the Uber app boost local spending?
By providing a stress-free and private method of getting transportation, the Uber app allows many Nigerians to travel with peace of mind, knowing that the Uber app’s in-built safety features and driver pre-screening processes ensure they will get to their destination smoothly.
This is beneficial for Nigerians having a good time – but also for the local businesses that benefit from their extended patronage.
According to our research:
0
%
of riders had used the Uber app to go shopping.
0
%
of riders had used the Uber app when visiting a restaurant or café.
0
%
of riders said the Uber app has made it easier to get to bars and restaurants.
0
%
of riders said the Uber app has made it easier for them to try new bars and restaurants further away from their house.
0
%
of riders said the Uber app has made it easier to attend entertainment activities such as sporting events and performances in their city.
How does the Uber app boost local tourism?
Nigeria is proving increasingly popular with international travellers, accounting for 3.6% of the country’s GDP.7 The World Travel and Tourism Council estimates that travel and tourism jobs in Nigeria are set to double over the next decade, creating 2.6 million jobs by 2032.8
Uber’s trusted relationship with international travellers means that it is their go-to transport option when exploring the country. This in turn generates revenue for Nigerian hotspots, as they are connected to international customers. In total, we estimate that in 2023, the Uber app created ₦5.4 billion in additional value for the Nigerian tourism industry, supporting hundreds of thousands of tourist journeys.
Uber’s Impact:
Consumers
Uber makes Nigerians’ lives easier
Since its launch in 2014, the Uber app has taken on an increasingly important role in getting Nigerians where they need to go. Whether they are visiting the doctor, commuting to work, or meeting up with friends or family, the Uber app connects people to both essential and non-essential parts of their life.
This is all the more relevant as Nigeria experiences rapid population growth and rising urban migration in its cities. Amidst the busy streets of Lagos, Ibadan and Kano, technological solutions such as Uber offer a useful means to navigate increased congestion and relieve pressure on existing transport networks.
How do people use the Uber app?
Riders in Nigeria are using the Uber app to make essential journeys across their region. In our consumer survey, we found that:
0
%
of users said they had used the app when they needed to get somewhere fast.
0
%
of users said they had used the app to get somewhere in an emergency.
0
%
of riders said they had used the Uber app to ensure they got somewhere on time.
The Uber app often plays a very practical role when riders need it most. In the last year:
of riders had used the app for friends and family who struggle with mobility.
of riders had used the app to commute to or from work.
of riders had used the app to get to an airport.
of riders had used the app to travel to or from a doctor’s appointment.
The Uber app also connects people to leisure activities in their area. In the last year:
of riders had used the app to get to a party or festival.
of riders had used the app to get to a birthday party or wedding.
of riders had used the app to get to see a film, show or performance.
of riders had used the app to get to or from a date.
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Uber Courier
Beyond using the Uber app for daily commuting and other personal transport needs, Nigerians have access to Uber Courier: an on-demand, peer-to-peer delivery service. The service launched in Lagos in 2021 and has since been expanded to Abuja and Port Harcourt.
Uber Courier caters to individuals and small businesses, allowing for the secure and efficient delivery of documents, gifts, or other items. It offers two services – Uber Courier Moto, which allows for deliveries of small-sized parcels on motorcycles, and Uber Courier Bicycle, which is an eco-friendly option for deliveries within a 6 km radius.
Nigeria’s e-commerce and last-mile delivery sector is expanding, with a compound annual growth rate of 11.7%, suggesting over $14bn in revenue by 2027.9 Leveraging its technology, Uber Courier is providing a same-day delivery service that provides cost-effective, on-demand, and no-contact delivery for families, friends, small businesses, and early entrepreneurs.
Why do people use the Uber app?
Navigating highly congested roads with high rates of traffic incidents in hot weather can feel stressful, uncomfortable, and, at times, unsafe. Riders use the Uber app to escape the worry and unease of driving in traffic, taking public transit in hot weather, or walking home alone.
The Uber app makes getting around easier, more comfortable, and quicker. We found that “convenience” was the most important reason why riders choose to use the Uber app (98%), closely followed by “safety” (97%) and then “comfort” (96%).
Which factors tend to be important in why you choose to use the Uber app?
In order to explore these motivations further, we asked riders to write in their own words why they use the Uber app. The most commonly used words were safe and comfortable.
Convenience also has a real value for Nigerians. We estimate that the Uber app saves riders a total of 1.8 million hours per year compared to their next best alternative. This is equivalent to 4.4 million episodes of the show Tinsel.
How does Uber complement public transport?
The Uber app helps to complement – and unlock access to – public transport.
Despite ongoing investment into new infrastructure, including the Lagos Mass Transit System and commitments in the National Land Transport Policy, there remain significant gaps in Nigeria’s public transport systems.10 According to our research:
of respondents said that public transit is not always very convenient near them.
of respondents said that it often takes them a long time to reach their destination because of how slow public transit is.
This is often then a key reason for using the Uber app, offering alternative transportation methods where they are needed:
0
%
of riders said that a lack of public transport options was an important reason for using the Uber app.
0
%
of riders had used the Uber app to get somewhere where other forms of transport do not reach.
0
%
of riders had used the app to get somewhere where public transit was inconvenient.
Moreover, the Uber app often offers a last-mile solution for riders who want to more easily connect to public transport infrastructure.
0
%
of riders had used the app at least once to connect to public transport.
When asked why they had used Uber in this way, responses included: to avoid bad weather; to save money; and to speed up their journey.
How does the Uber app help to tackle congestion?
Platforms like the Uber app can also play a direct role in reducing congestion in Nigeria’s cities. Congestion is a big problem in Nigeria, and particularly in its capital city. With millions of people travelling on Lagos’ roads every day, traffic can often be slow and journeys can take hours to complete. In 2023, Traffic Index rated Lagos as the city with the worst road traffic in the world – and some estimates suggest that Lagos residents can spend 30 hours a week caught up in congestion.11
Services like the Uber app can ease traffic by encouraging carpooling and ridesharing, leading to fewer vehicles on the roads. Furthermore, efficient route optimization algorithms minimise unnecessary driving and reduce idle time. These elements, along with the convenience of on-demand rides lessening the reliance on personal car ownership, help mitigate traffic congestion in cities.
According to our research:
0
%
of all riders agree that having the Uber app as a ridesharing option reduces their need to drive.
0
%
of people who share a car with someone else agree that the existence of ridesharing services makes it easier for them to share their vehicle.
0
%
of riders have used the Uber app when they could have driven themselves.
Attitudes to Sustainability
The Nigerian government has announced plans to manufacture more electric vehicles (EVs) over the next decade, along with plans to diversify the country’s energy resources and expand the availability of sustainable vehicles fueled by compressed natural gas (CNG).12
Our research highlights that there is high demand for sustainable transport options. Many Nigerians are willing to pay more to ride in sustainable vehicles, with younger riders more likely to be willing to pay more to ride in a CNG vehicle.
- 74% of riders said they would be even more likely to order a ride from the Uber app if they knew they would be riding in an electric vehicle.
- 79% of riders said they wouldn’t mind paying a little more to ride in an electric vehicle.
How much are the benefits enabled by the Uber app worth to consumers?
One of the most important measures of economic welfare is known as “consumer surplus.” This is a standard measure of the consumer welfare created by a product, service or organisation.
In simple terms, it is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service. Services with a high consumer surplus are implicitly playing an important role in people’s lives, because people would willingly pay more than the asking price to keep using it.
For example, puff puff might typically cost ₦1,000– but someone with a sweet tooth might be willing to pay up to ₦1500 when struck by a sugar craving. The consumer surplus in this instance would be ₦500.
In order to understand this metric for Uber’s services in Nigeria, we asked riders and consumers how much they would have to be compensated to lose access to the Uber app for the next month.
In 2023, we estimate that rides on the Uber app produced the equivalent of ₦500 billion in improved consumer surplus for Nigerian riders.
Uber’s Impact:
Safety
It is important that individuals feel safe when they are on the move. However, this isn’t always the case for many Nigerians. According to our research, 31% of adults told us they feel unsafe travelling home alone at night, whereas 64% reported feeling unsafe on public transport in the last year.
This is amplified in big cities that have high levels of crime. In Lagos, endemic thefts and assaults can leave people feeling insecure – especially late at night.13
How does the Uber app support safe travel?
The Uber app’s door-to-door service allows riders to feel safe and comfortable in private vehicles. According to our survey:
of riders say safety is an important reason why they choose to ride using the Uber app.
of riders agree that using the Uber app is often the safest way for them to travel home.
In particular, the Uber app has had a greater impact on the safety of women than other demographics. Nigerian women were more likely to have felt unsafe on public transport and at night and were also more likely to value the safety provided by the Uber app.
of women have felt unsafe on public transport sometime in the last year, compared to 59% of men.
of women have felt unsafe travelling home on their own at night, compared to 25% of men.
of women have felt that the Uber app was the only way for them to get home late at night, compared to 59% of men.
of women feel that the Uber app was the safest way for them to get home late at night, compared to 68% of men.
With a multitude of safety features and background checks for drivers, Uber has demonstrated that it takes its safety responsibilities very seriously. Uber has a suite of safety features, such as the “RideCheck” feature, which detects if the ride stops for an extended period and sends a prompt to the driver and rider ensuring they are alright, following up with calls to each of them if they are unresponsive.14
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How does the Uber app help to make roads safer?
In 2021 alone, there were over 40,000 road traffic incidents in Nigeria. Booking a ride on the Uber app allows riders to get to their destination safely, without the stress of navigating traffic or the fear and responsibility of getting into an accident.
Uber also plays an important role in improving road safety for everyone – as ride hailing apps provide a safe way for riders to get home after they have been drinking. 79% of riders agree that having options like the Uber app helps to reduce drunk driving in an area.
Uber’s Safety Features
Technology apps like Uber have improved safety by creating accountability and transparency where previously there was none. This is because technology makes it possible to focus on safety for riders and driver-partners before, during, and after every trip in ways that simply were not possible before smartphones.
Uber has a dedicated team working in Nigeria, across Sub-Saharan Africa, and around the world to support this commitment to safety, and is always looking for ways to improve.
Safety before a trip:
- Safety Centre: This is Uber’s in-app resource, which includes safety tips for riders, information about Uber’s relationship with law enforcement and information about the driver screening process, insurance protections and Community Guidelines.
- Real-Time ID Check: Uber uses selfies for security by prompting drivers to take photos against their government identification to help verify the right driver is behind the wheel on an ongoing basis.
- Verify My Ride: Uber allows users to verify a ride with a PIN. This opt-in feature ensures users are getting into the right car with the right driver.
- Driver Profile: Get to know a driver before stepping into their car. Users can see their rating, how many trips they’ve completed, how long they’ve been driving, compliments from previous riders, and more.
The driver onboarding process:
a) Driver Verification
- Drivers must submit a valid driver’s license and, in some cases, a National Identification Number (NIN), which are cross-checked against the government database for authenticity.
b) Vehicle Verification:
- A Vehicle Inspection Report (VIR) is required. Drivers must also renew and submit an updated VIR quarterly to maintain compliance.
- Vehicle Insurance is also mandatory.
Safety during a trip:
- In-App Emergency Button: With the push of a button in the app, users can connect directly to private emergency services and security responses when needed through a third-party private security supplier.
- Audio Recording: To enable more effective investigation of safety incidents during a trip, audio recording enables riders and drivers to use the app to record and share audio of their trip as evidence.
- Share My Trip: Users can select trusted contacts in the app and set reminders to share trip details with them.
- Ride Check: Uber has been developing technology that harnesses the power of GPS, along with other sensors from the driver’s smartphone, to identify rare events like unexpected stops or possible crashes. In these situations, Uber can initiate a Ride Check by reaching out to both the rider and the driver to offer assistance.
- Safety Check-up: This feature encourages riders to complete their safety profile by turning on and utilising the available features such as Trusted Contacts, PIN verification and RideCheck.
How does the Uber app help keep drivers safe?
Uber is just as committed to driver safety. The Uber app’s in-app safety features ensure that drivers and riders feel secure at all times. When asked about the safety features available on the Uber app:
of drivers said GPS tracking made them feel safer.
of drivers said RideCheck, which checks potential crashes and safety incidents on the road, made them feel safer.
of drivers said the emergency assistance button made them feel safer.
Which of the following safety features available on the Uber app have you heard about and how have they impacted your driving experience?
Conclusion
This report demonstrates Uber’s contributions to the Nigerian economy, as well as its broader social benefits that help adults living, working or travelling in Nigeria to fulfil their potential. The Uber app is already being used to move Nigerians safer, faster, and farther, helping riders save time and money, and supporting drivers to earn on their own terms.
But there is so much more potential to be realised. An increasing proportion of the population is getting online. Nigeria is projected to reach 117 million internet users by 2027 – equivalent to 48% of the population.15 This digital proliferation offers greater potential for the growth of the platform economy and Nigeria’s economy as a result.
Therefore, with the right conditions, and a pro-innovation environment, we estimate the Nigerian ride-hailing market could grow considerably over the next five years, further contributing to the country’s growth and development. This would, in turn, drive significant economic potential across the platform’s full value chain of consumers, workers and businesses.
The Nigerian government has already taken great steps to ensure they harness this potential. However, more can be done to accelerate the transformation that is within the country’s grasp.
To ensure the platform economy reaches its full potential, Nigeria must:
Prioritise digital inclusion.
Further investment is needed in technology education and expanding internet access – particularly in underserved areas and particularly for women. This would enable more Nigerians to participate in the digital economy as drivers and customers, boosting overall economic growth.
Invest in transport infrastructure.
Improved infrastructure would facilitate smoother traffic flow and enhance the efficiency of ridesharing services. This might include expanding and maintaining roads, enhancing public transport integration, and developing designated rideshare pickup and drop-off points.
Support flexible working.
The key to the platform economy’s success is the ability of drivers and delivery partners to be their own boss. Nigeria must ensure this remains possible, and support entrepreneurs to balance flexible income streams.
Maintain a pro-innovation regulatory approach.
Digital economies flourish when there is a consistent and constructive policy landscape. Nigeria’s platform economy would benefit from protocols that ensure safety, fairness, and transparency while encouraging innovation and competition in the sector.
Develop electric mobility incentives.
The government could further encourage the adoption of environmentally friendly vehicles, such as electric motorcycles and cars, by providing tax incentives, and subsidies, and supporting the development of charging infrastructure. This would reduce the carbon footprint of the transportation sector and improve air quality in urban areas.
Promote a diverse, inclusive transport network.
Allowing a diverse network of ridesharing services – including motorcycles and tricycles would create economic opportunities for passengers looking for low-cost options to travel and for drivers who may not own a car and are looking to earn extra money.
Methodology
About Public First:
Public First is an independent consultancy that works to help companies and organisations develop new policy proposals, better understand public opinion, and model their economic and social impact. Public First is a member of the British Polling Council and the Market Research Society, and abides by their rules.
About this report:
In this report, Uber commissioned Public First to better understand and quantify the impact they were making for their users, Uber drivers, and the broader economy in Nigeria. All values provided in this report are given in Nigerian Naira.
We used a mixture of methods to explore Uber’s impact:
- Public First ran an in-depth nationally-representative consumer poll of 1,124 online adults in Nigeria to explore their transport habits and experience with the app.
- Public First ran an in-depth national survey of 447 drivers operating on the Uber app in Nigeria.
- Public First then created new quantitative models of the economic impact, consumer surplus and driver value created by Uber in Nigeria.
Uber’s Economic Impact
The economic impact of Uber was calculated as the sum of:
- Data on driver payouts provided by Uber.
- Supply chain (indirect) and additional demand (induced) impacts of driver spending on vehicles.
- Induced impact of net driver income, which is then spent in the wider economy.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Nigeria. It does not attempt to measure what would happen in a hypothetical scenario where Uber no longer existed. Our modelling does not include the impact of Uber’s direct investment or employment footprint as a company in Nigeria, or any spillover effect this has into the wider tech ecosystem.
Time saved by Riders
As part of our polling we asked riders about their most recent trip with the Uber app, and how long the next best alternative would have taken. Using this, and internal Uber data on average trip times and numbers, we estimated the time saved per trip and aggregate time saving from using Uber.
Consumer surplus
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked app users a single discrete binary choice question in the form:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [ride hailing apps] or go without access to [ride-hailing apps] for one month and get paid ₦X?”
The price offered was randomised between 200, 400,800, 1,600, 3,200, 8,000, 16,000, 32,000, 80,000.
We then computed a linear regression of the results of this poll to derive a demand curve and the total consumer surplus per user, taking the average as the headline measure. This was then scaled by users to calculate the total consumer surplus.
Additional income
To calculate the additional income we asked workers the following question:
“If the Uber app did not exist, how much do you think you would be likely to earn per week with your next best alternative?”
The results from this polling allowed us to calculate the relative alternative earnings. This was then combined with internal Uber data on earnings and number of active drivers to calculate the total additional income earned.
Value of Flexibility
As part of the driver survey, we asked the following single discrete binary choice question:
“Imagine you had to choose between one of the following two options for your driving or delivery:
- Fixed schedule but MORE consistent weekly earnings at X% [lower/higher] level than you do now
- Flexibility to choose your own hours, but earning only the same amount per hour that you do now
Which would you prefer?”
In our poll, we asked a series of identical questions, within which X was randomised between 1%, 5%, 10%, 20% and 50%.
We then used a linear regression to derive a demand curve and the total driver surplus per user, which was then scaled up to a national level using data provided by Uber on driver numbers and earnings.
Impact on the night time economy
We gathered data from third-party sources on the market sizes of alcoholic beverages, cinema, music events, and restaurants, along with their associated costs, to estimate the total number of outings each year. This was then adjusted using polling data to account for transport options, market share, nighttime hours and additionality.
Impact on tourist industry
To estimate the number of Uber journeys taken by tourists we used internal data from Uber alongside third part estimates. To measure the impact Uber has on the tourism industry, we average the results from two methods:
- The first approach draws on figures from Park (2020) on the effect of Uber on tourism and applies the relevant findings to the Nigerian tourism industry.
- The second approach uses Uber’s internal data alongside Public First’s survey data to estimate the number of Uber trips taken by tourists that would not have happened otherwise and the subsequent spending that occurred as a result.