Nigeria’s growing transport infrastructure, particularly the expansion of rail services in Lagos and Abuja, made it difficult for Uber to compete effectively in the country, former presidential aide and Nigeria’s Ambassador to Mexico, Reno Omokri, has said.
Omokri argued that the development of rail infrastructure has provided commuters with cheaper alternatives for travelling between major destinations, affecting the competitive environment for ride-hailing services.
He cited Lagos, where the Blue Line and Red Line rail services have expanded transportation options, while the proposed Green Line is expected to further increase connectivity across the city.
Speaking on Sunday Politics on Channels Television, Omokri explained that Uber’s business model, which focuses on providing relatively affordable point-to-point transportation, faced greater competition as mass transit infrastructure improved.
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 maintained that the expansion of affordable public transportation had changed the market for ride-hailing companies by giving commuters additional and cheaper ways to move around major cities.
He said conversations about Uber and Nigeria’s transportation sector should therefore also take into account the role of infrastructure development and the availability of mass transit alternatives.
Source: Channels Television
