Uber Technologies plans to invest 5 billion rand ($260 million) in South Africa over the next three years, the ride-hailing company said on Tuesday, as it seeks to expand electric mobility and food delivery services despite tightening regulations in one of its largest African markets.
The investment, announced at the South Africa Investment Conference in Johannesburg, will support the rollout of electric vehicles (EVs), charging infrastructure, and growth in Uber Eats, including expansion into township economies.
Uber said the figure includes a combination of new investment and previously committed capital expenditure.
The announcement comes as the company faces regulatory uncertainty after missing a March 11 deadline to secure an operating licence under amendments to South Africa’s National Land Transport Act.
The updated rules require e-hailing platforms to obtain licences, while drivers must hold individual permits and meet stricter vehicle standards. Non-compliance can result in fines of up to 100,000 rand or imprisonment.
Rival Bolt has already secured the necessary approvals.
“We continue to see long-term opportunity in South Africa,” said Deepesh Thomas, Uber’s general manager for Sub-Saharan Africa, adding that the company is engaging regulators as it adapts to the new framework.
A significant portion of the investment will go toward scaling Uber’s electric vehicle offering. The company currently operates more than 120 EVs in Johannesburg and plans to expand the fleet as demand grows.
Uber’s push into EVs aligns with its global target to become a zero-emission platform in key markets by 2030, though adoption in South Africa remains constrained by limited charging infrastructure and policy uncertainty.
The regulatory changes are also prompting a review of Uber’s business model. The company is considering simplifying its service offerings, including a potential phase-out of its UberX category in Gauteng later this year, according to industry reports.
South Africa is a key market for Uber in Africa, with thousands of drivers relying on the platform for income. The sector has seen increasing competition from rivals such as Bolt and inDrive, alongside growing pressure from regulators to improve safety, formalise the gig economy and ensure fair competition with traditional taxi operators.
Uber said part of its investment would support small businesses through Uber Eats by providing digital tools, logistics support and access to online marketplaces, particularly in underserved areas.
The company’s expansion plans come as South Africa seeks to attract investment and boost economic growth, with unemployment remaining above 30%.