Motorcycle and car ride-hailing company, SafeBoda has announced that it will exit the Nigerian market at the end of December 2022, to concentrate on its more profitable business in Uganda.
The Ugandan firm ventured into the Nigerian market in May 2020. It also had operations in Kenya since 2018, which it terminated two years later.
According to Alastair Sussock, the SafeBoda co-founder and chief executive officer, Uganda generates significant cash flow and is moving quickly to full profitability. He notes that Uganda is a huge market with more than 1.5 million rides happening every day in greater Kampala alone.
SafeBoda had launched in Ibadan, Nigeria, after a ban on okadas or bodas in Lagos.
However, Mr Sussock indicated that the okada business in Nigeria were very challenging, which even if they are positive, the margins were too thin.
The company failed to make returns in its investment despite Nigeria being a market where ride-hailing could potentially thrive, given the country’s wealth and population.