UBER EXIT : my hypothesis of what could have been done differently

– a long read but good for business analysis

Uber is probably the first taxi hailing system many Nigerian residents know. It was a big upgrade to how many people transported themselves around.

I recall that when Uber came to Nigeria, I had car issues. It was a lifesaver for me because Abuja cabs were rickety and their fares were exploitative. So Uber was very timely.

Then for some reasons, Uber had issues with Drivers’ compensation (it has always been there) which probably accelerated the need for a rival service; and there was Bolt’s opportunity to take. And they did.

On paper, the more taxi hailing services we have in Nigeria, the better for the country because the competition should drive improved service quality, and competitive pricing, and other benefits. But Nigeria is not an economy to apply paper sense.

But what could Uber have done differently (my hypothetical analysis; not based on empirical data)?

– Uber did not believe in “*community*”. Do a simple search and check how many times or places did Uber engage her riders, support initiatives, or even try to have a ‘face’. Very scarce !!!

Nigeria is a typical African community-driven people. As sophisticated as Nigerians are, we are still VERY TRADITIONAL. Uber missed that chance.

Uber did not allow itself to pivot or expand into the needs of Nigerians beyond just “transportation”. And sometimes, I want to think they didn’t see Nigeria as a long term viable market.

– Top of mind presence was weak

– ⁠Cross service options were weak (one of the most powerful transportation revenue options in Nigeria is carriage or cargo transport (logistics). Uber could have layered that to their core service)

– Market spread was weak: I think they chose to operate within premium state capitals (Lagos, Abuja, PH, and probably Kano). I don’t think there was an intentional plan to enter many states. Are you aware that Bolt has Keke (tricycle) and MotorCycle 🏍️ services in Kaduna and Jos? I think Uber decided it’s not for them to “go low”.

– Stakeholders management was poor: there are 2 key resources that made Uber what they were: their Drivers and the Cars of their Drivers. While there is the argument that the cost of business was quite high, I do not think Uber demonstrated genuine interest to arrive at a win-win with their key stakeholders (Drivers). As far back as I can remember, Uber Drivers complained about Uber compensation. That was a huge error on their part.

Maybe that’s why Bolt created the “Bolt” option and the “Comfort” option to force Drivers to make their cars conducive for riders and get better compensation.

Bolt also has Driver compensation issues but Bolt has provided more CSR in Nigeria to earn MORE GOODWILL than Uber has done.

Ultimately, my assessment is that Uber did not utilize the community of Drivers & Riders to their advantage. Because if they had a database of at least 1 Million downloads in Nigeria, that market share was enough to keep them in business via pivoting, expansion, engagements, tokenization, and leverage.

Like I’ve always said: BUILD A COMMUNITY BEFORE YOU NEED ONE.

Uber had a community FROM DAY ONE but did not use it.

They forgot to model after the MTN’s, the AirTel’s, the GTCO’s, the UBA’s, etc. Brands who have traction but never sleep on it.

Any brand that is not engaging the people who patronize them WILL DIE. It is not a matter of “if”. It’s a matter of “when”.

As a Doctorate Researcher level Professional in “Communities, Memberships & Subscriptions”, I have seen clear-cut difference between businesses that build and utilize communities from those who don’t and I hope your business will not be a casualty of the later.

Perhaps you’re a C-Suite and you want me to BRAINSTORM with you on this subject matter, hit me up for a quick “pick my brain”. Talk to Stella on 07035953367 and we can look at your systems and design what works for you.

BUILD A COMMUNITY BEFORE YOU NEED ONE.

m a k t u b !!!

Sam Obafemi
The Octopus 🐙
– Author of “Marketing without a Budget”
– ⁠DBA Dissertation: THE IMPACT OF MEMBERSHIP MODELS ON MARKETING AND PURCHASE LOYALTY FOR COMMODITY BRANDS.