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Objective
High Quality
57% 38%
Professionals
43%
Students
62%
Key Findings
Awareness Perception
Weakness
Since Uber was the pioneer in ride sharing in Bangladesh, Pathao is much less used when it
comes to car based ride sharing services. Moreover, Pathao is perceived to be Bike based
ride sharing service while they have also introduced car based ride sharing services, but
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usage of their car based ride sharing is much less than Uber. Furthermore, pathao has a very
small female user base of bike sharing services, which could be the result of our
conservative social values.
Opportunities
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Pathao has a lot of room to grow and expand their business among youngsters of the
nation, especially in the metropolitan cities which face a lot of traffic. Moreover, Pathao
has room to grow in car based ride sharing to level the plain field with Uber. Furthermore,
pathao has additional service of parcel delivery through bikes and cycles, which could
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revolutionize the courier and delivery service market of Bangladesh. If external factors are
to mentioned, there are increasing number of local manufacturers of motorbikes in
Bangladesh now, which could as well be a positive force in Pathao’s growth opportunity
since people would be able to buy motorbikes at a cheaper price than imported ones and
add a source of regular income through enlisting themselves in ride sharing services.
Threats
Observing Pathao’s fast growth through bike based ride sharing services, the pioneer Uber
has also launched their bike based ride sharing service, Uber moto. Therefore, Uber could
be a considerable treat given their deep international pockets to withstand a teeth grinding
competition, given that Uber is also the market leader in car based ride sharing services.
Not only that, there are other bike based ride sharing services such as Sam, Muv, Ezzyr etc.
which are gaining riders day by day and users are also trying out other ride sharing
services, which could increase the user churn rate and decrease the retention rate
gradually. To add more, Pathao has no insurance policy for users’ in case of any accident
occurs while taking a pathao ride, which could as well be a demotivating factor.
PEST Analysis
Political
Initially when app based ride sharing services were introduced, government was at a loss
about how to tax these businesses. However, given that government has already developed
policies and taxation procedures for app based ride sharing social businesses, there is no
chance of government intervention in the near future and government policies seem to be in
favor of the ride sharing businesses since these business are legal entities unlike
cooperative societies of traditional transport associations
Economic
Given that Bangladesh is experiencing a very stable GDP growth and is considered to be
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one of the emerging economies of the world at the moment, the economic factors (such as
inflation rate, interest rate etc.) are in favor of ride sharing businesses.
Social
With increasing traffic jam in Dhaka city, bike has become an increasingly popular medium
of transport over last few years. Moreover, introduction of bike based ride sharing services
and with many local producers offering quality motorbikes at much cheaper price than
imported ones, people are buying more and more bikes nowadays, including females.
Moreover, since bike rides are less time consuming, people’s perception towards bike as
risky transport is changing gradually. S
Technological
Given that most people of Bangladesh use internet from mobile phones (around 97%), the
app based ride sharing services have somewhat favorable a context for their businesses.
Since many of the people who are less literate or find English to be challenging as the basic
language, integration of Bangla language in the app would definitely help in attracting
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people to such technology based services. In the near future, as the envisioned digital
Bangladesh implementation is done, people would be more prone to using technology and
their dependence on technology will increase, thus ride sharing businesses will experience
a more favorable environment in the near future.
Strategies