Company’s operations in Africa could come to an end soon

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January 24, 2018 12:00 PM

A powerful shareholder is suggesting the ride-hailing app leaves Africa and Asia to hit profitability quicker.

Ride-hailing app Uber could pull out of Africa and Asia going by recent events.

Rajeev Misra, a board member of its latest investor Softbank has said that Uber needs to withdraw from Africa and Asia to focus on core markets in the US and Latin America, in order to hit profitability quicker.

He made the comment last week immediately after Softbank led an $8 billion investment in the ride-hailing app for 15 percent equity. The move makes the Japanese tech investor giant the largest shareholder and it plans to throw its weight to influence Uber in the direction it believes is best for the company.

However, Uber thinks differently. The company says it plans to “double down” on providing services “to more people in more places around the world.”

More of expansion, than focus.

Quartz Africa also reports that a spokesperson for Uber assured that the company is “very much committed” to its operations in Africa and is “excited” about its “future growth prospects.”

Tough bank

But in the world of business, the shareholders have the final say. They can even vote a founder out, as shareholders once ousted Steve Jobs out of his own company Apple.

In Softbank’s case, it seems to pundits that the investor is merely trying to save its own face as Uber in Africa and Asia currently competes with Taxify and Didi, respectively, companies it has invested in.

Uber leaving these growth markets means its other investments could fare better.

Also Read:Ex-Uber CEO gets $1.4 billion cash from deal, and he plans to give it away

Uber began operations in Africa in 2013 and has since expanded into 8 different markets on the continent including Kenya, South Africa, Nigeria, Ghana and Uganda. The ride-hailing company has enjoyed warm welcome locally unlike in London where its license was revoked or in India where it suffered a national outcry when a user was raped.

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