Rail Infrastructure Made It Difficult For Uber To Compete In Nigeria — Reno Omokri

Ambassador of Nigeria to Mexico and Former presidential aide, Reno Omokri, has attributed Uber’s exit from Nigeria to the country’s growing transport infrastructure, particularly rail development in Lagos and Abuja.

Omokri said the development of rail infrastructure had made it possible for commuters to travel between major destinations at a fraction of the cost of some ride-hailing services.

He cited Lagos and Abuja as examples, noting that the Blue Line and Red Line rail services in Lagos, as well as the planned Green Line, had expanded transportation options for residents.

Omokri made this known on Sunday Politics on Channels Television while explaining why Uber’s business model could not compete effectively with Nigeria’s evolving transportation infrastructure.

He said, “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. This is what they’ve done successfully in several countries, including the United States and the United Kingdom.

“They tried that in this country, and it was succeeding. 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.

“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. 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 argued that the expansion of affordable public transportation had altered the competitive environment for ride-hailing companies, as commuters now had alternative means of moving around major cities.

He maintained that discussions about Uber and the Nigerian transportation sector should also consider the impact of infrastructure development and the availability of cheaper mass transit options.