Uber Is Gone, But Nigerian SMEs Still Have Options: 6 Delivery Services to Consider
- Uber, the global ride-hailing app, did not just shut down its ride-sharing platform in Nigeria; its exit signalled something more profound for Nigerian SMEs
- The company closed its main ride-hailing platform and Uber Send, a critical logistics service that has helped several Nigerian SMEs for over seven years
- However, Nigerian business owners have a plethora of logistics choices despite Uber's exit from the country, as local and domestic options step up to fill the space
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Uber’s exit from Nigeria also affects Small and medium-sized enterprises (SMEs) that relied on its drivers to move products, documents and other goods across cities as they handle last-mile delivery.
The ride-hailing company’s departure comes as Nigerian businesses are already dealing with rising logistics costs, making reliable and affordable delivery services important to online sellers, retailers and other small businesses.
Source: Getty Images
While no single platform is a perfect replacement for every Uber delivery use case, several logistics and delivery companies continue to operate in Nigeria and offer services that can help SMEs keep fulfilling orders.
Here are some of the alternatives, in no particular order, that SMEs can consider:
Kwik Delivery
Kwik Delivery is one of the closest alternatives for SMEs looking for an on-demand delivery service.
The firm is focused on business-to-business and last-mile deliveries. Its service allows merchants to request pickups and deliveries through its platform, with real-time tracking available for shipments.
The company currently lists Lagos, Abuja and Ibadan among its Nigerian operating cities. It said deliveries can take up to two hours in Lagos and one hour in Abuja and Ibadan, although actual delivery times will depend on traffic, demand and the particular order.
For SMEs selling fashion, cosmetics, food, electronics and other relatively small products within a city, Kwik may be one of the more direct alternatives to the convenience they previously got from ride-hailing drivers.
GIG logistics
GIG Logistics Lekki Admiralty offers a broader logistics network, which makes it useful for businesses that need to move goods beyond their immediate city.
Unlike an on-demand ride-hailing model, GIG Logistics is structured around parcel and logistics delivery, including interstate shipments.
For an SME sending products from Lagos to customers in Abuja, Port Harcourt, Benin City or other locations, a dedicated logistics company will make more sense than relying on individual ride-hailing drivers.
Sendbox
Sendbox is another option for online merchants, particularly businesses selling through Instagram, WhatsApp and e-commerce channels.
Rather than operating simply as a courier, Sendbox has positioned itself around helping online businesses manage logistics and deliveries.
This makes it potentially useful for SMEs that have moved beyond occasional deliveries and need a more structured system for fulfilling multiple customer orders.
Local courier and dispatch companies
Uber’s exit could also benefit Nigeria’s fragmented network of independent dispatch and courier companies.
For SMEs with regular delivery volumes, negotiating directly with a dispatch company or fleet operator can sometimes be more practical than booking individual trips.
The trade-off is that businesses may have to manage more of the relationship themselves, including rider reliability, tracking, customer support and proof of delivery.
Bolt (check the exact delivery service available)
Bolt remains a major mobility platform in Nigeria, but SMEs should be careful about assuming that every Bolt delivery product available internationally is also available in Nigeria.
Bolt operates delivery-related services in some markets, including Bolt Send, which allows on-demand parcel delivery, but its website notes that products and features vary by country.
For Nigerian businesses, the relevant services available in their particular city should be confirmed in the Bolt app before treating it as a direct replacement for Uber’s former delivery use case.
Source: Getty Images
The bigger problem for Nigerian SMEs
The disappearance of one platform exposes a bigger weakness in Nigeria’s e-commerce ecosystem: last-mile logistics, which has remained one of the highest costs of doing business online.
The cost of transporting products across Lagos can significantly reduce the seller’s margin; hence, they are mostly passed on to the consumer, who pays delivery fees.
Businesses can consider delivery costs when setting prices, rather than treating logistics as an afterthought.
Uber set to fire 3,000 workers globally
Legit.ng earlier reported that Uber's decision to cut over 3,000 jobs globally, representing around 10% of its workforce, comes amid a major restructuring that sees the company exit Nigeria and Uganda.
As Uber shifts its focus towards autonomous vehicles and more critical areas of growth, the implications for employees and the ride-hailing industry in Africa are profound, raising questions about the future of mobility on the continent.
Source: Legit.ng
