From civilization, transportation is playing an important role in carrying people and goods from one place to another. In recent years, ride-hailing service has added a new dimension to transportation around the world and Bangladesh is not out of this blessing. Ride-hailing service is an app-based system that connects passengers and drivers for using their vehicles to provide transport services to the passengers. It has been considered as the most comfortable transportation system for door-to-door service. The most beneficial side of this ride-sharing service is, rent is fixed as per kilometer and passengers need not bargain for fixing this rent. According to World Bank, traffic congestion eats up 3.2 million working hours per day in Dhaka, adding up to 660 million hours per year. So, with the introduction of this ride-hailing service, the passenger is being blessed with the easy finding of transportation which picking than from the door with an apps-based fare. Besides, it has reduced waiting time for public transport and enlarged working hours for passengers. Moreover, it has also created an employment opportunity for the drivers as well as creating an extra earning facility for the people who have personal motorbikes with licenses. “In Bangladesh ride-hailing industry is valued BDT 2,200 corer which is 23 percent of the transportation sector.” Said the policy Research institute. The Bangladesh Road Transport Authority (BRTA) has permitted 12 ride-sharing companies to operate their business in the country and they are Pick me Ltd, Computer network system Ltd, Obhai solution Ltd, Chaldaal limited, Pathao limited, Easier technologies Ltd, Sejesto Ltd, Shohoz Ltd, Uber Bangladesh limited, buddy Ltd and Akiz online limited. Among these 12 top 3 players Uber, Pathao and Shohoz are re-dominating the market. A statistic in January 2019 shows commuters took 6 million rides through this ride-sharing app per month. But it is a matter of sorrow that several companies have already been accused of harassment to female commuters during the rides by the riders. For this reason, a question of safety and security for the female commuters are always been there. So, Government and companies must need to take proper initiatives against these sorts of the allegation. 

The paper is organized into eight different sections, including the summary and introduction section. The remaining of the paper is as follows, objectives of the research are presented in section 3, the relevant literature review regarding concepts in section 4. In section 5, the detailed methodology of this study is explained considering the research approach, data and sources and other strategic management techniques. Section 6 includes the finding and Analysis of the significant findings. The conclusion and the references of relevant studies are presented in sections 7&8 of the paper.         

Objectives

The main objective of this study is to present a comparative study to evaluate the performance of existing ride-hailing companies operating in Bangladesh. Other specific objectives are:

• To explore the customer’s perception of the ride-hailing industry in Bangladesh

• To assess the competitive market position of the existing ride-hailing companies operating in Bangladesh

Literature Review

Though few studies Focus on ride-sharing services, we will show some studies that worked on ride-sharing contexts. One of the studies where authors proposed a framework for a dynamic vehicle pooling system for Dhaka city. Through this framework, they showed new concepts relating to the existing system. They ensured the pooling of any types of vehicles such as bikes, cars, buses, etc. and payment security by a prepaid system Farin et al. [1]. This ride-sharing service efficiently ensures the involvement of vehicles, usually cars and bikes through a digital platform. In this era of sharing economy, this system prolongs the availability of IoT (Internet of things), Web of Things (WoT) and smartphone technology to create a flexible communication process for both riders and users [2]. By using new technology ride-sharing companies can extract suitable information from mobility traces to identify the suitable routes that are amenable for them as well as to identify the demand for customers [3].

Recently, [2] in their study categorized the evolution of North American ride-sharing into five phases from 1942 to the present based on a premium group of the society, energy crisis, institutionalization, reliability and advent of technology. Moreover, In the wave of the growing sharing economy, the development of ride-sharing services like Lyft, Uber and Sidecar brought immense competition in the industry in New York City and Chicago [4]. Considering the fact, a study by [5], using the demand pattern of the different user groups, showed how to forecast the demand and competition of ride-sharing services in the right way. Furthermore, ride-sharing services need to consent to the same regulations and standards set by the government for the taxis in different cities regarding price and safety [6].

A study by Islam et al. [7] identified the current status and prospect of the ride-sharing services in Bangladesh from a user perspective where they showed the rapid growth of ride-sharing services as an alternative to conventional transportation as people prefer flexibility, convenience and time savings.

The concept of ride-sharing service has grown up; the expansion of ride-sharing services gained popularity in the economy of a country like Bangladesh [8]. Moreover, an investigation was done by Kumar et al. [9] on the introduction of Uber in Dhaka's existing transportation infrastructure where authors used data from drivers and riders and content analysis of riders’ Facebook posts showed the mobility practices of Uber.

However, all the previous studies on ride-sharing services discussed above focused mainly on the emergence of ride-sharing services in different cities and their economic impact on those cities. Also, some of the authors discussed the framework of ride-sharing services. Thus, there is still a gap in the knowledge about how those companies are ensuring superior profitability by following their strategies in the economy like Bangladesh where these services have emerged recently. A firm study in this context is necessary for the people involved in sharing economy based on the present scenario of Bangladesh. Thus, research on this unique issue will be more helpful in the future.

Data Collection and Analysis

Secondary Data

Secondary data are data collected for a purpose other than the problem at hand. Secondary data are collected from different journals, articles, websites and conference papers. The researcher has considered some top publications for collecting secondary data such as Elsevier, Springer, Sage publication, etc. Secondary data are exhausted properly for the fulfillment of the research objectives. 

Primary Data

Primary data are data that are collected for the problem at hand. Primary data are collected from two main sources namely in-depth interviews and survey questionnaires. The survey has been conducted on the customers who may be influenced by the promotion in digital media. The in-depth interview has been taken from the industry experts, entrepreneurs, brand managers who are involved with branding, digital marketing and communication. 

The responses from the in-depth interview have been described and the data from the survey are analyzed using Microsoft Excel through tables, graphs, charts to bring out the findings.

Research Design

A research design is a roadmap or master plan to conduct and implement research. There are three main types of research designs such as exploratory research, descriptive research and causal research. A mixed research method is followed by combining exploratory research and descriptive research design. The in-depth interview has been collected to conduct exploratory research and survey questionnaire are used to conduct descriptive research.

Questionnaire Design

The in-depth interview has been conducted with an unstructured questionnaire. On the other hand, a structured questionnaire is prepared to survey the respondents.

Figure 1: Research Methodology in a nutshell

Sampling Procedure

There are two main sampling techniques such as probability sampling and non-probability sampling. Non-probability sampling method has been followed to conduct the research. Under non-probability sampling, more specifically, convenience and judgment sampling techniques are followed. A sample of 105 respondents is selected conveniently for conducting the survey using a structured questionnaire. And a few respondents are selected to collect in-depth interviews with industry experts, entrepreneurs and brand managers (Figure 1).

Findings From Depth Interview

The researchers have conducted an in-depth interview with the industry experts, strategic managers, entrepreneurs who are practicing new strategies and customers’ perceptions of their business. According to some industry experts, the majority of the customers are moving towards affordable prices and safety. That’s why companies are opening their training center to train riders and following strict laws if any riders break the law. They are also working to run an algorithm that will ensure an affordable price for customers and maximize the company’s profit. Even, experts also run surveys through digital media platforms to reach customers in their best way to reach every class of people. The challenges all the ride-sharing companies face are offline rides by riders that are creating customers dissatisfaction. To solve this problem, they are taking initiatives with the help of the government. Finally, we have known that during COVID 19 situation ride-sharing companies are helping the government in contract tracing is the most important information from in-depth interviews.

Findings From Survey 

We surveyed 105 people through questionnaires and there were 11 questions about the ride-hailing companies. Most of the customer of the ride-hailing service was 18-30 years old. And they were the students and corporate persons who are the close customer of the ride-hailing business. And among the customers the majority was male (Table 1 and Figure 2).

Table 1: Stakeholders

Table 2: Customers’ Preference (Field Survey)

The Table 2 depicts the preferable ride-hailing company to the people. It indicates that 66 out of 105 respondents (62.9%) prefer Uber and 15 out of 105 respondents (27.6%) prefer Pathao. Both Uber and Pathao represent 90.5% preference of the respondents. On the other hand, respondents have the lowest response to the Soho. It indicates that the strategy of Uber and Pathao is successful to reach the customers (Figure 3).

Reason Behind the Preference

We have selected the possible reason those could be behind the choice of the people like-Brand image, affordable price, safety, On-Time Service (OTS), offer orientation. 33.3% believe in the brand image than other factors. Most of the people also preferred OTS. But the whole graph shows us that company’s strategy to charge affordable fare is more important for many people as 40% of people chose this factor over any other factors. Safety has 18.1% preference and the offer orientation has less significance to customers (Table 3 and Figure 4).

Women Safety

Most of the customers were ambiguous about the women’s safety in the ride-hailing services. And 13.3% of people think it is not safe for women. Only 25.7% of people think it is safe for women. So, it can be concluded that it is not safe for women. Also, we can conclude that taking initiatives like bringing trained women riders for women customers can be a game-changing strategy for any company and it will ensure women empowerment Figure 5. 

Trained Riders

Most of the people are not agreed that riders are well trained as only 25.7% agreed about the proficiency of the riders.

Figure 2: Respondent distribution 

Figure 3: Preference percentage 

Figure 4: Reason Behind the Preference

Figure 5: Women Safety

Table 3: Reason behind the preferences (Field Survey) 

Table 4: Concern of people on the training of the drivers

Mean score = (5*0+4*27+3*39+2*37+1*2)/105=2.68

The Table 4 depicts the attitudes of the respondents about the statement “All Riders are trained”. It indicates that none of the respondents (3.8%) is strongly agreed and 27 out of 105 respondents (25.7%) agrees with the statement. Where 37 out of 105 respondents (35.2%) disagree with the statement and 39 out of 105 respondents (37.1%) are ambiguous to the statement. The claim can also be judged by calculating the mean score of the variables using their respective mean value. The mean score is 2.68 which is between 2(disagree) and 3(not sure). That’s why we can certainly say that in this industry all riders are not well trained (Figure 6).

Affordable to Every Class of People

The Table 5 depicts the attitudes of the respondents about the statement “Is Ride-Hailing Service Affordable to Every Class of People”. It indicates that 4 out of 105 respondents (3.8%) strongly agree and 23 out of 105 respondents (21.9%) agree with the statement. Where 57 out of 105 respondents disagree with the statement and 17 out of 105 respondents (16.2%) are ambiguous to the statement. The claim can also be judged by calculating the mean score of the variables using their respective mean value. The mean score is 2.68 which is between 2(disagree) and 3(not sure). That’s why we can certainly say that still, ride-sharing service is not Affordable to Every Class of People in Bangladesh (Figure 7). 

Figure 6: Attitudes of the respondents about the statement “All Riders are trained

Figure 7: Attitudes of the respondents about the statement “Is Ride-Hailing Service Affordable to Every Class of People

Table 5: Affordability of the people (Field Survey)

Mean score = (5*4+4*23+3*17+2*57+1*4)/105=2.68

Table 6: People’s perspective to food delivery service (Field Survey)

Food Delivery Services

Most of the people acquiesce that the food delivery service is good for them as its ratio is 85.7% and customers are enjoying this service much (Table 6).

Preferable Company in Case of Food Delivery

The Table 7 depicts the preferable food delivery service to the people. It indicates that 42 out of 105 respondents (39.6%) prefer Pathao and 27 out of 105 respondents (25.5%) prefer Uber. In that case, Pathao wins the heart of the people by their uniqueness. On the other hand, as giant food chain Uber Eats has recently shut down its operation in Bangladesh, it will create new opportunities for others to grab the market (Figure 8). 

Table 7: Preferable Company for food delivery services (Field Survey)

Table 8: Reason behind the preference (Field Survey)

Figure 8: Depicts the preferable food delivery service to the people

Figure 9: Reason Behind the Preference

Reason Behind the Preference

We have selected the possible reason those could be behind the choice of the people like-Brand image, affordable price, On-Time Service (OTS), Discount/Coupon. Most of the people preferred OTS which is the most 47.6%. The Discount/coupon amenities have the most significance with 39% and brand image has the least significance (Figure 9 and Table 8). 

People’s Convenience over the Extra Facilities of the Ride-Hailing Services

51.4% of the people agreed that these facilities are helping them and 21% people have strongly agreed on the fact also. Few people are not interested in these facilities.

The Table 9 depicts the attitudes of the respondents about the statement “In Pandemic situation people feel the urgency of extra facilities”. 
Table 9: People’s convenience over the extra facilities (Field Survey)

Mean score= (22*5) +(54*4) +(22*3) +(4*2) +(3*1)/105 = 3.84

Table 10: Mobilizing transportation sector (Field Survey)

Mean score= (5*25+4*64+3*10+2*5+1*1)/105=4.02

Figure 10: Attitudes of the respondents about the statement “In Pandemic situation people feel the urgency of extra facilities”

Figure 11: Mobilizing Transportation Sector

It indicates that 22 out of 105 respondents (21%) strongly agree and 54 out of 105 respondents (51.4%) agree with the statement. So, we can say that majority of the respondents (72.38%) are either agree or strongly agree with the statement. The claim can also be judged by calculating the mean score of the variables using their respective mean value. The mean score is 3.84 or 4 which is between 4 (agree) and 5 (strongly agree). That’s why we can certainly say that the ride-sharing industry is crucial in case of a pandemic situation (Figure 10). 

Mobilizing Transportation Sector

The Table 10 depicts the attitudes of the respondents about the statement “Mobilizing Transportation sector”.
 

It indicates that 25 out of 105 respondents (23.8%) strongly agree and 64 out of 105 respondents (61%) agree with the statement. So, we can say that majority of the respondents (84.8%) are either agree or strongly agree with the statement. The claim can also be judged by calculating the mean score of the variables using their respective mean value. The mean score is 4.02 which is between 4 (agree) and 5 (strongly agree). That’s why we can certainly say that the ride-sharing industry is Mobilizing the Transportation sector of Bangladesh (Figure 11).

Addable Features Demanded by the Customer

The most relevant features can be brought by ride-hailing companies. Those are-Books, Medicine delivery by all service companies, Ensure safety, Offer low fare, Proper training to the riders, make available for the women, Emergency doctor services, Operating the app without internet, more discount by the companies, amenable behavior by the riders, courier service, better amenities (helmet, seat, etc.).

Comparative Analysis

By analyzing all those questions Uber & Pathao is in the upper position in the Bangladeshi market. For ride-hailing, Uber’s strategies keep themselves in the upper hand whereas for food delivery service Pathao has outperformed others by their superior strategies. But all those are pre-pandemic situations. During the pandemic situation, no other companies but Pathao brings new services like Tong (grocery items provider), Pharma and parcel. These services are much relatable to the customer’s demand that we found in our survey. So, the way Pathao is walking is much appreciable to people where other companies fail to bring new services demanded by customers. From this viewpoint, we can conclude that the post-pandemic situation can help Pathao to lead the market only if they can continually fulfill customers’ demands by adopting new strategies.

The study aims to explore the coatomer’s perception about companies of the industry and their strategy to ensure superior profitability by serving efficiently. In the case of ride-sharing services, overall customers’ perceptions are positive. There is emerging growth in this field. The technological revolution has made it happen in this regard and the number of users is increasing amazingly. The research is based on practical users through some core questions so anybody might get benefited who is directly or indirectly involved in it. Consequently, this study is useful for the existing and future service providers of this sharing economy. It would help the companies to understand their customers’ choices and perceptions of the services. Thus, companies need to articulate the findings into their strategies to create more market presence and to enhance business growth through customer satisfaction. However, this study is not beyond its limitations. This is a perception-based study where a limited number of convenience samples are considered to determine the present status and prospect of ride-sharing services in Bangladesh. As this is exploratory research in this field, more conclusive research can be initiated in the future.

1. Farin, N.J. et al. A framework for dynamic vehicle pooling and ride-sharing system. In 2016 International Workshop on Computational Intelligence (IWCI). IEEE, 2016 Dec: pp. 204–208.

2. Chan, N.D. and Shaheen, S.A. Ridesharing in North America: Past, present and future. Transport Reviews. 2012;32(1):93–112.

3. Bicocchi, N. and Mamei, M. Investigating ride-sharing opportunities through mobility data analysis. Pervasive and Mobile Computing. 2014; 14: pp. 83–94.

4. Wallsten, S. The competitive effects of the sharing economy: how is Uber changing taxis. Technology Policy Institute. 2015; 22: pp. 1–21.

5. Agatz, N., Erera, A.L., Savelsbergh, M.W., Wang, X. Dynamic ride-sharing: A simulation study in metro Atlanta. Procedia-Social and Behavioral Sciences. 2011; 17: pp. 532–550.

6. Midgley, P. Bicycle-sharing schemes: enhancing sustainable mobility in urban areas.United Nations, Department of Economic and Social Affairs. 2011; 8: pp. 1–12.

7. Islam, S. et al. Ride-sharing Service in Bangladesh: Contemporary States and Prospects. International Journal of Business and Management. 2019;14(9).

8. Kamau, J et al. Demand responsive mobility as a service. In 2016 IEEE International Conference on Systems, Man and Cybernetics (SMC). IEEE, 2016 Oct:001741–001746.

9. Kumar, N et al. Uber in Bangladesh: The tangled web of mobility and justice. Proceedings of the ACM on Human-Computer Interaction. 2018; 2(CSCW): pp. 1–21.

10. 
     

Questionnaire to collect data on the current scenario of ride-sharing companies and customers’ reactions.

1. Respondent’s Gender-

• Mail

• Female

  1. Age-

• 18-23

• 24-30

• 30-40

• Above 40

1. Occupation-

• Student

• Teaching Profession

• Corporate Person

• Government Employee

• Other

2) Which ride-hailing service do you prefer most? *

• Uber

• Pathao

• Sohoj

• Obhai

3) Why do you prefer this company? *

• Brand Image

• Safety

On-time service

• affordable fare

• Offer orientation

4) Are those ride-hailing services safe for women passengers? *

• Yes

• No

• Not sure

5)Do you agree that all riders are well trained? *

• Strongly agreed

• Agreed

• Not sure

• Disagree

• Strongly disagree

6) Is the RIDE-HAILING service affordable to every class of people? *

• Strongly agreed

• Agreed

• Not sure

• Disagreed

• Strongly Disagreed

7)Do you like "Food Services" by ride-hailing companies? *

• Yes

• No

8) Which companies do you prefer in case of question no.7's answer is yes? *

• Uber

• Pathao

• Sohoj

• Others

9)Why do you prefer this service? *

• Brand Image

• On-time service

• Discount/Coupon

10)In this epidemic situation, ride-hailing services are offering some sort of extra services (e.g. door to door groceries, medicines delivery). Do you find it proficient in this epidemic situation like COVID-19? *

• Strongly Agree

• Agree

• Not sure

• Disagree

• Strongly Disagree

11)Do you agree that ride-hailing services are mobilizing the transportation system? *

• Strongly Agree

• Agree

• Not sure

• Disagree

• Strongly Disagree

12) Which extra facilities do you want in the future from those ride-hailing companies?

Your answer