Informal bargaining overtakes app-based ridesharing in BD!

Ridesharing in Bangladesh

Dhaka, Jan 16 - Passengers and riders in Bangladesh are increasingly bypassing app-based ridesharing services, opting instead for on-the-spot bargaining, causing security concerns as the formal system is being neglected, complained users.

Ridesharing services, introduced through mobile apps or websites, initially gained popularity due to their speed, affordability and convenience compared to public transportation.

Despite the initial success, the sector is now struggling with growing dissatisfaction among both passengers and drivers.

Complaints against ridesharing companies have surged, but the Bangladesh Road Transport Authority (BRTA) has been unable to act due to the absence of robust regulatory guidelines.

Jubair Khan, a resident of Khilgaon, shared his frustrations, “Using apps was once hassle-free and efficient. Now, finding a rider through apps is expensive and difficult. We often have to go to main roads to find rides.”

Declining Usage and Non-renewal of Licences

While global ridesharing usage is on the rise, Bangladesh has witnessed a sharp decline in bike-based ride-hailing. Of the 15 registered ridesharing companies, only two—Pathao and Uber—have renewed their licences, indicating their continued dominance. Thirteen companies have failed to renew their licences, with some withdrawing from the market altogether.

Globally, the ridesharing market grew from $61 billion in 2018 to $218 billion in 2025, with projections to reach $285 billion by 2030. Over 100 million people are expected to use these services within the next three years.

In Bangladesh, however, drivers like Shankar have been avoiding app-based platforms. “We no longer use apps frequently as bonuses and discounts have been removed. Serving passengers on the road is easier,” he said.

Economic and Operational Challenges

As of January 2024, Dhaka had 4.3 million registered bike riders. However, drivers claim unregistered riders outnumber the registered ones, creating a saturated market.

Full-time drivers earn between Tk30,000 and Tk50,000 per month, while part-time drivers make Tk12,000 to Tk15,000. Yet, many drivers face financial strain. Mintu Mia, an Uber driver, outlined his daily expenses: earning Tk3,500 from rides, he spends Tk3,154 on Uber commissions, fuel, platform fees, booking fees, meals, and rent, leaving him with just Tk346 in savings.

Beyond financial struggles, drivers endure physical and environmental risks daily.

Proposals for Reform

The Dhaka Ridesharing Drivers’ Union recently met the Labour Reform Commission to propose key reforms.

According to union president Sajib Hossain, the proposals include amending the current ride-sharing policy, setting a fair fare structure, capping commission rates, eliminating platform and booking fees, and ensuring drivers are not penalised for carrying illegal items on behalf of passengers.

Additional measures, such as introducing waiting and cancellation fees and forming a dedicated regulatory commission, were also recommended to protect drivers’ rights and sustain the sector.

The Labour Reform Commission has proposed including drivers in the Somota pension scheme, part of the Universal Pension Scheme for low-income individuals. Under this scheme, drivers would pay Tk500 monthly, matched by the government, to secure a pension of Tk1,530 per month after 10 years.

Safety Initiatives

Ridesharing companies have emphasised the importance of using apps to ensure passenger safety. Apps allow users to track rides, view driver details, and report misconduct.

Pathao and Uber launched a joint campaign to enhance safety standards and customer experiences. This initiative includes driver training on safety measures, document verification, and awareness programmes.

Legal Framework

The BRTA has approved 12 ridesharing companies under the Ride-sharing Service Guidelines 2017, introduced to legalise and regulate the sector. These include Pathao Limited, Uber Bangladesh Ltd, and others.

While app-based ride-hailing services began in Dhaka in 2015, the cabinet approved the “Ride-sharing Service Guideline 2017” in 2019.

The BRTA mandates that ride-sharing cars adhere to fare limits set under the Taxicab Service Guidelines 2010, which specify a base fare of Tk85 for the first two kilometres and Tk34 for each subsequent kilometre, with a waiting charge of Tk8.50 every two minutes.

Despite these measures, the sector’s future remains uncertain as it struggles to balance passenger convenience, driver welfare, and regulatory oversight, said many users.-UNB