All the Dhaka city residents have one common thing to hate which they need to face it every single day. Many of them are even thinking to leave the country due to this experience. You already understand what we are talking about. This is nothing but the “traffic jam” of Dhaka, the ultimate time killing the machine. In every working day at morning, one needs to keep around 1 hour in hand before the start because he/she knows a long traffic jam is waiting. It’s increasing daily life cost and shaking the balance of life. Suddenly in one morning, people found a solution for a traffic jam in cheap. It would change their lives and save their time unlike anything else. They don’t need to express their feelings about this but all they can say is “WOW” and the solution is known as “Pathao”.

“Pathao” is a ride-sharing mobile based application founded by Hussain M Elius, Fahim Saleh and Shifar Adnan. It has been developed to solve the daily transportation problem of Dhaka people. This fastest growing e-service is new to Bangladesh but this type of service is already popular in different countries. Pathao is not even the first ride-sharing mobile application in Bangladesh but this is the first one which has been accepted by mass people. Pathao has started its operation as a delivery service back in 2015, later in October 2016 it introduced its motorbike based ride-sharing service. Meanwhile, in November 2017 it has introduced “Pathao Cars”, a car based ride-sharing service.

Apart from the transportation solution for riders, Pathao is becoming a popular choice for bikers to earn money. Most of the Pathao drivers are part-timers and freelancers who are basically students and job holders. These drivers earn around BDT 400-500 within 3-4 hours at pick time of the day. Meanwhile, a full-time bike driver can earn around BDT 700-800 per day. Pathao has a commission rate of 20% on top of each ride fare still, a healthy amount of money remains in drivers’ pocket. The remaining amount is lucrative enough that’s influencing people to take this job as full time. Also in a special period such as the time of “Ramadan”, Pathao needs to serve twice requests than usual.

Statistics from last June 2017 shows around 1000 drivers including 100 woman drivers have been registered with Pathao. Although the number of Pathao driver depends on the current time availability. Also, it has around 300,000 registered users so far. Considering 14.4 million populations and 400,000 bikes in Dhaka city still, there is a huge scope of work waiting for Pathao. However, bearing in mind the situation of Chittagong, Pathao also can beat the traffic in there.

Pathao is also up for some international investment as the business is growing fast. According to the latest development Indonesian startup, Go-Jek has been lined up for $2 million investment.

Source: Pathao Facebook Page

Strongholds of Pathao:
Optimized Application: One of the core difference between Pathao and other ride-sharing mobile apps in Bangladesh is, Pathao application is much optimized than any others. The fact is Pathao app. can be used almost in every type smartphone (except Windows and some very old versions). This allowed Pathao to reach a massive group of people.
Human Resource: The Human resource of Pathao, one of its core strength. It has recruited some very talented resources from different big organizations who are leading it towards success.
Social Acceptance & word of mouth: Pathao has a wide range of social acceptance with both of their delivery and ride-sharing service. Especially heavy social media presence with positive word of mouth increases its credibility.
A wide range of coverage: Pathao has established the set up as if they can support with ride-sharing service through different corners of Dhaka what their competitors are unable to do yet.
It’s cheap and convenient: The overall system of Pathao is still cheaper than regular three wheeler transportations. CNG auto rickshaw wheelers already in talk of the strike to deal with Pathao threat. However, Pathao service is also very convenient for users. Riders can reach their Pathao while he is having a coffee at home even.

Weak spots of Pathao:
Technical issue: Although, Pathao is technologically advanced than their any of their domestic competitors still there are lots of bugs in there. Usually, Pathao riders complain about wrong real-time tracking which eventually leads towards the increased cost for riders.
Over-dependence on drivers: This ride-sharing application is over depended over its drivers. Pathao is not able to track each driver’s activity every time especially because this is a freelancing job. In many cases it has found that drivers are not having an extra helmet for riders and riders are accepting this as they need the ride in an emergency basis. In some cases, it has found that drivers have been rejected the ride request due to destination what actually they can’t do by papers. Also, some drivers have really bad behavior to riders which actually effects Pathao’s brand image. Some drivers drive so recklessly on which Pathao does not have any direct control.
Technologically handicap people: Pathao requires highly technologically advanced people in their organization in both business and technology department. From the perspective of Bangladesh, there are a very low number of people in there who are technologically advanced to work in. Also from the customer and driver point of view, this is also applicable.

Opportunity waits for Pathao:
Huge market: The market is huge to capture and after a year of operation still a good number of people unaware of this service. Already mentioned that there are around 400 thousand bikers in Dhaka and this number is increasing at an exponential rate. Apart from that Dhaka has around 2 crore people and they are badly in need of transportation and an only small portion of this huge market has been touched with Pathao. So there is a huge scope of business still waiting to catch for Pathao.
Mismanagement in transport service: In Dhaka, the overall transportation system is in mess although Government has taken some projects like flyovers, metro-rail to solve the problem, the solution is still a long way to reach. There is a serious scarcity of Transportation in Dhaka, bus service is almost out of control, other taxi services and three-wheelers are charging way too much. Also, in rush hour it is almost impossible to find a favorable transport service. Meanwhile, the traffic jam is creating panic in general people’s time management.
Increasing telecommunication facility: Overall functionality of Pathao depends on telecommunication and internet facility. For last few years, especially after introducing the 3G internet facility the internet user has been increased profoundly.
Scope to increase business product mix: Pathao can launch related product list in future. They already have Pathao rides, Pathao Cars, and Pathao Courier service. Meanwhile, they tried with a new service known as “Pathao Marts” but eventually that did not fly.
Overall development of e-services in Bangladesh: The overall business of Bangladesh e-commerce service has been developed in last few years. Back in 2016, it had almost 72 percent growth and this proves people are trusting the e-services more than ever. It will be opened up Pathao’s opportunity to reach out more users.
Increased involvement by educated generation: Rather other transportation services Pathao service is providing by (freelancer) much-educated generation which is increasing the quality of service and service-related communications. These group of users is trying to find new scopes of using this services and giving this service a new dimension.

Threats for Pathao:
Deployment of policy for ride-sharing apps: Biggest challenge for Pathao to cope up in future is to follow proper legal structure. Currently, the government has made a 14-15 members committee to develop a policy for ride-sharing apps. Since the beginning, Pathao had quite a free wing to develop but after policy deployment, they might need to tighten their development.
Miss usage of the of the service: Since this beginning, there was a concern for miss usage of this service in crimes but till now something like that has not popped up. Again some drivers are trying to skip the commission payment as they claim to pay as the suggested amount instead starting the ride without activating the ride in Pathao application.
Challenges from different associations: Pathao and other ride-sharing apps have already taken a good market share from existing transportation services. To challenge those different associations from CNG are already challenging the existence of this service without proper authorization from proper authority.
New entries: Biggest challenge for Pathao in upcoming days is to deal with new entries. Sam was the first one which introduced this service in Dhaka later Pathao came. Other than these two currently MUV, Bi Cars, Uber Bike, Amar Ride, Dhaka Moto, Yes Bike and Bahon entered the market. Also, some other heavy competitors are waiting to enter into this business. The fact is the economic plate size of this industry has not increased that much but the number of competitors has been increasing rapidly. This will challenge them in future to deal with their business.

Although Pathao is quite an impressive service from the perception of Bangladesh, but when the worldwide scenario has been analyzed then it has found it is nothing but a demand for time. An analysis has found that in 2013 the traditional rental sector was $240bn and sharing economy sector was $15bn which is expected to be $335bn in size, 50% of total rental sector business. A heavy competition for Pathao might challenge them but also help them eventually to develop them. A proper collaboration of drivers, riders, and Pathao management can help all the parties in their own way. Also, a proper guidance from Government can help this ride-sharing service to explore this service. The fact is, Pathao is becoming a true friend for Dhaka residents, it is important for all to support them to sustain in this business as they can develop themselves and provide their services i a better way.

Source:
. 1. Special Feature, Uber and Pathao (2017). Derived from www.thedailystar.net/lifestyle/uber-grows-dhaka-1405597

2. Digitally disrupted (2017). Derived from www.dhakatribune.com/opinion/2017/11/24/digitally-disrupted/

3. Meet the minds behind the success of Pathao (2017). Derived from www.dhakatribune.com/business/2017/09/24/meet-minds-behind-success-pathao/

4. Bahon looks to give Uber, Pathao a run for their money (2017). Derived from: www.dhakatribune.com/business/2017/09/26/bahon-looks-give-uber-pathao-run-money

5. Exclusive: Bangladesh bike app Pathao to close series A, Go-Jek likely investor?(N.A.)
Derived from: www.dealstreetasia.com/stories/exclusive-bangladesh-bike-app-pathao-close-series-go-jek-likely-investor-82774/

6. Demand for Pathao shoots through the roof (2017) Derived from: http://www.dhakatribune.com/bangladesh/dhaka/2017/06/21/pathao-popularity-doubled-ramadan/

7. Ride-sharing: The rise of innovative transportation services (2016) Derived from: https://marsdd.com/news-and-insights/ride-sharing-the-rise-of-innovative-transportation-services/