Sharp Decline in Bike-Ride Sharing Usage Forced Companies to Halt Services2 min read

The bike-ride sharing industry in Bangladesh, once a thriving trend powered by mobile apps, has encountered an unforeseen setback with a significant drop in user engagement. This decline has led to 13 out of the 15 registered companies opting not to renew their annual licenses, forcing these firms to reassess their strategies and navigate shifting market dynamics.

While 13 companies have chosen to let their licenses lapse, three ride-sharing enterprises have submitted renewal applications to the Bangladesh Road Transport Authority (BRTA). The remaining 10 companies are grappling with either complete market exits or grappling with delays in their renewal processes. This transformation in the ride-sharing sector signifies a substantial departure from the initial enthusiasm that accompanied the entry of these firms into the market.

Notably, only two companies, Pathao and Uber, have succeeded in securing prompt license renewals, a testament to their robust business performance. Pathao Rides, which provides both bike and car services, has witnessed substantial growth over the past year. Despite grappling with inflationary pressures and a challenging economic environment, Pathao’s unwavering commitment to customer satisfaction and value has driven its expansion, increasing its user base by a remarkable fivefold.

Jatri Service Ltd, Chaldal Ltd, and Obhai Solutions Ltd have pending license renewals mainly due to intense competition, aggressive marketing by Uber and Pathao, and the rise of off-app riding. Obhai Solutions, known for bike rides, now offers car, CNG, and delivery services. Obstacles include renewal system complexities and technical glitches in the BRTA’s system.

The decline in bike ride-sharing began during the COVID-19 pandemic and was exacerbated by concerns over undesirable behaviors exhibited by some bike riders. Addressing these concerns necessitated coordinated efforts between the BRTA and law enforcement agencies to restore public confidence.

The BRTA warns of tougher action against unlicensed ride-sharing services. Companies not renewing their licenses won’t operate in the future. Lack of infrastructure was the main reason for non-renewal, but the BRTA has simplified the online renewal process. Several companies are still in the process of developing their infrastructure, leading to delays in their renewal efforts. Computer Network System Ltd, for instance, proactively secured its license early as part of its future plans to enter the ride-sharing market.

The decline in bike-ride sharing and the ensuing renewal challenges underscore the rapidly evolving nature of the transportation industry in Bangladesh. Firms operating in this space must adapt to changing consumer preferences and market conditions to thrive.

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