By Angel Lubowa
Kampala
The late evening news of ride-hailing giant Uber ending its operations in Uganda after about 10 years in the market was not received as a shock by people especially in the business world.
After all businesses do come and businesses do go . Businesses can be mortal depending on a number of economic and investment factors.
And in Uganda' case ,Uber only joins other big investments which have closed shop like Uchumi, Shoprite etc.
However every such a closure leaves a mark especially in taxation and disrupting employments.
For example as part of a wider global restructuring within Uber tthe company will see a cut of about 3,300 jobs.
The resulting impact will of a necessity affect employment in Uganda and Nigeria where the company wund up its operations effective September 2, 2026.
Accordingly the closure followed a review of its business priorities and investment strategy as explained in their statement that, "After a thorough review, we have taken the difficult decision to wind down operations in Nigeria and Uganda, effective September 2, 2026,”
While that was for Uber , one wonders how many small and medium local business enterprises do close daily after reviewing their business priorities and investment strategies ?
According to records from Uganda Registration Service Beaureu (URSB) an institution responsible for enlisting and registering companies in the country, thousands of companies have hit by deregisteration.
As of June 2026 , URSB permanently removed 37,702 companies from the national register after a 12-month grace period for restoration
expired.
This followed a December 2025 warning notice from late 2025 announcing the deregistration of about 50,003 companies under similar non-compliance terms.The closure literally meant that these administrative closures target entities that failed to file annual returns for five consecutive years under the Companies Act.Such failures means businesses are not running as planned.
Whereas those are companies, at a personal level at your village or ward or at your city street around Kampala and suburbs, you have encountered businesses closing, shifting or starving .
Its very common to return to a shop on a business arcade in town where you bought an item three months ago to find quiet a different face behind the counter.
Today individuals operate only to finish their initial three months rent or six to quit or change location before totally closing. Others have shifted to run businesses from home curtesy of social media marketing .
This can temporarily save them from rent, daily personal transport, lunch and taxation expenses. Its sometimes a night mare when the profits are lean because of the higher taxes, the buyers are scarce over a slow individuals economy on one hand with a very demang tax body and demanding city landlords on the other side.
The trade ministry ought to intervene in the trade and businesses chain in the country or else the business economy will some how crush and effects will then turn back to Uganda Revenue Authority ( URA) the national taxation body.
Uber withdrawal otherwise brought to an end its operations in Uganda, where it launched its ride-hailing service in Kampala in June 2016.
The hundreds of drivers it had signed up when it arrived in Kampala, creating a new earning opportunities and introducing app-based ride-hailing to the Ugandan market have now been left in space.
They can only find consolation perhaps with
other ride-hailing services.
