UberBOAT launches in Lagos, Nigeria

Uber launched a pilot program for their new boat service in Nigeria’s Lagos. (Flickr)

Global ride-hailing company Uber launched a pilot waterway service program called UberBOAT Nigeria’s commercial capital, Lagos, on October 11 in an effort to tackle the city’s infamous traffic congestion. Big technology and investment companies like Uber may play an important role in alleviating regional overpopulation problems occurring across the African continent as a result of dramatic urbanization. 

Lagos is home to more than 20 million people, making it Africa’s largest city. Its population is expected to grow by 77 people every hour between now and 2030, the fastest population growth rate in Africa. Due to the city’s extreme overcrowding, traffic congestion has become a severe problem. Citizens of Lagos spend on average 30 hours a week in traffic, making the city’s traffic congestion some of the worst in the world. Health experts say the traffic negatively impacts citizens’ physical and mental health. Furthermore, economists estimate that the Lagos business community alone loses $30.5 million each month as a result of congestion.

Media executive Agnes Marquis noted, “How productive can you be when you stay in traffic for over six hours on a daily basis, conjoined with the things you go through to have a normal life in this city?”

Fast-paced urban growth and traffic congestion in Nigeria and in other populous cities in West Africa are attracting foreign transportation firms like Uber. Brooks Entwistle, chief business officer at Uber, said in June that West Africa presents a big business priority for the company and called Lagos “one of the great growth opportunity cities in the world.” Although Uber has been operating in Lagos since 2014, their new boat service marks a venture into new territory.

Uber’s two-week pilot boat service has partnered with the Lagos State Water Authority (LASWA) and local boat operator Texas Connection Ferries. Analysts have blamed poor funding and a lack of government support for a dearth of serious efforts at running water taxis thus far. While Uber has encountered tough state regulation in some countries in Africa, the local Lagos government appears open to innovative ideas. 

Lagos’ state governor, Babajide Sanwo-Olu, said in a statement, “The last couple of years have seen the Lagos State Government commit to building up infrastructure that supports multi-modal transportation, which includes water transport. We collaborated with Uber on this because of the shared vision to utilize the waterways more as a means of decongesting the city.”

Lagos is the most recent of Uber’s business ventures to adapt to diverse geographic and economic environments. Similar to its Lagos service, Uber launched a taxi boat service in Mumbai, India, earlier this year. Alon Lits, Uber’s general manager for sub-Saharan Africa, said that African cities’ cash-based economies were driving the company’s new global strategy about cash. Uber’s expansion into Africa, alongside other tech giants like Google, is a testament to the economic possibilities of Africa’s population growth, particularly in urban areas. In terms of broader economic impact, Uber and government officials in various African countries hope that Uber’s expansion will improve productivity among workers by slowly easing traffic congestion and provide employment to a growing population of jobless youths. 

The startling rate of population growth in cities across Africa is due to both high organic population growth as well as significant migration from rural areas to cities. Some economists worry that such rapid urbanization may cause social and political unrest due to inadequate infrastructure and job opportunities, especially as high unemployment is already common. However, this fast-paced growth, which may make Nigeria the third most populous country in the world by 2050, also presents opportunities. Economists argue that in order to capitalize on this growth, the government and businesses will need to collaborate to increase investment in more technologically savvy urban infrastructure, new employment opportunities, and more affordable urban housing options.

The success of UberBOAT in Lagos has yet to manifest, but its launch demonstrates a growing global interest in investing in Africa’s technology and infrastructure.