Business Growth Strategy For Pathao Car – History of Ridesharing in Dhaka Dhaka, the most populous city in the world is home to 21 million people. Those 21 million people turn around for the daily commute. Recent GDP and income growth has helped its middle class own a car. But this led to traffic jams. A 2017 World Bank analysis found that the average speed of traffic in Dhaka has decreased from 21 km to 7 km (per hour), slightly above the average walking speed. According to the BUET report, traffic congestion consumes five million working hours and costs the economy 37,000 million tek annually.
As a result, the compatriot welcomed these ride sharing apps of Pathao, Uber, Sohoz, when they took off! But it also created some other problems that needed to be solved!
Business Growth Strategy For Pathao Car
Driver issues: According to a 2017 report, there were 500,000 drivers who regularly share rides to meet dates or earn a little extra while on the go. The number is expected to increase by 100% this year as the demand for these types of services is always on the rise. (Estimated 1 million drivers)
Ud Round Up #04: The Word From The Streets
But Uber and Pathao’s standard 25% commission has left drivers with very little income and a very low loyalty rate. As such, driver woes are: • Low income • Low job security because job turnover is higher • Lack of ride-sharing platforms where drivers can earn more • Low self-confidence especially while driving for Pathao (many drivers consider Pathao as a platform where drivers are unprofessional and sometimes have instant addiction problems)
On the contrary, the customer’s pain is: • Requests from drivers to cancel a trip and go on a trip outside the platform • Unplanned weekly travel costs • Safety concerns (not knowing if the driver really knows the road safety rules)
To give some depth, when ride-sharing platforms took off, anyone with a driver’s license could report their ride on the platform with virtually no filtering. As a result, many unprofessional and low-skilled drivers have managed to work for ride-sharing platforms.
Road safety was such a big concern that there were many protests in the country demanding better road safety and security. Recently, when several students died due to unprofessional driving, thousands of high school students took to the road showing the crying demand for better and safer roads and drivers.
Pdf) Comparative Analysis Between Ride Sharing Services: An Empirical Study From Emerging Market
The business should generate revenue of A$200 million per annum with profits of A$180-190 million
The business could impact 1 million drivers, 10 million passengers and could reach A$180 million annually
Over the course of a year, the business model shows that the cost is $8.9 million to handle 10% of the market (100,000 drivers)
Investors can invest 500,000 AUD at 5% and can expect 1400% ROI within 2 years. Pathao, which roughly translates to ‘send’, has become an app-based online motorcycle ride service in Bangladesh since its launch in 2015. It is the only company in Bangladesh that provides both logistics and transportation services to the people of Dhaka city. The first adopters of the shuttle service are students and people commuting to and from offices. Although Pathao faces stiff competition from international players in the market, including Uber, the company has an edge over its rivals as its two-wheelers can better deal with the sweltering traffic in Bangladeshi cities than those of its rivals. on four wheels. Patao built this advantage by taking the time to establish its operations and build a workforce of proven employees. With its ability to provide speedy services and its courteous and reliable customer service, Pathao received a good response early on. As a startup, Pathao is a company that is constantly evolving and believes in embracing dynamics. The company hopes to expand its network to include the whole of Bangladesh and expand its offering to other industries. This case study focuses on how Patao has to deal with the challenges of being a startup in the aggressive but promising app-based ride-hailing industry in Bangladesh. Emphasizes operational and marketing strategies and the importance of customer service and maintenance strategy for long-term success during growth.
Pdf) Strategic Success Of Reputed Companies
You are not authorized to view teaching notes. Please contact your librarian for access or log in to your existing instructor profile.
Have you created a personal profile? Sign in or create an account to save clips, playlists and searches Over the past few years, Bangladeshi company Pathao has almost taken over the ride-sharing market in Nepal. If you are a long time user like me, you know that the scene was not the same 2-3 years ago. We all originally started with Tootle, which had no competitor in the ride-sharing space. Enter Pathao in 2018, the customer base quickly switched to the new app. As the market was and still is in its infancy here in Nepal, the uptake may not be that great for some. But even so, being able to not only attract new customers, but also steal away Tootle users is quite commendable.
So how exactly did Patheau manage to capture market share so quickly in an already established monopoly, and actually beat its competitor? I will discuss some of the marketing strategies they used to achieve this and how you can hope to incorporate this into your business.
I think we can all agree that Pathao has a very affordable and easy to use app. Errors are rare and the process of registering as a driver or customer is quite efficient. Since the company already had experience in the Bangladeshi market, it was able to deliver a finished product, so to speak, to Nepal. This meant no unnecessary lag or force closing while using the app. GPS is also very accurate and updates frequently (although performance also depends on your device). User experience is the cornerstone of any successful app and they nailed it.
Pdf) Customers’ Expectations Meet Perceptions Or Not: App Based Ride Sharing Services By Uber And Pathao In Dhaka City
After signing up for Pathao, you will be greeted with an offer of Rs.50. At that time, it was a discount of Rs ten per new user. If you refer a friend, you’ll also get a discount. Now they have reduced it, but in the initial stage it was critical. For context, let me compare this to Tootle’s discount model. Tootle uses “teeth balance” which means you’ll get a certain amount of balance for each ride. This is not a very attractive proposition, especially for new users. Customers want discounts at their fingertips, find it tempting and are more likely to recommend it.
So the company’s promo code model brought other people to join. This was in addition to the regular occasional promo codes they offered which were there to keep customers using the app. In 2018, their promo codes were extensive, I got a discount almost every time I wanted a ride. This was why I and thousands of others switched jobs.
There are several ways Pathao markets its product. I will discuss digital marketing later, in this section we focus on text messages and traditional ads.
Pathao regularly sends text messages to its customers to remind them of their application. Even now, under the guise of caring and what not, they find ways to keep you engaged with their app. Notifying users of promo codes, app updates, traffic updates, etc. means that users are actively seeing your brand appear on their phones. This led to a greater propensity to use the app.
How To Make A Banking App Like Monzo Or Revolut
Patao’s marketing campaign was very focused and sponsored many youth and school events. Again, having money in their hands helped, but effective targeting was a huge part of it. Instead of simply placing billboards where they could, they sponsored shows and events that their likely customer base interacted with regularly.
Although Pathao has found unique ways of traditional advertising, the defining nature of Pathao’s marketing strategy is digital marketing. It was actually among the first apps in Nepal to actively use Facebook and Instagram ads to their advantage. Digital marketing has many advantages, perhaps the most important of which is targeted advertising. Patao took full advantage of this and grew its customer base exponentially.
Pathao would combine their offers with their digital ads, they would show customers their attractive offers and entice them. Not only customers, Pathao has put together interesting bonuses for its drivers as well. This led to drivers favoring Patao over Totle and gradually shifting market share to them. Let it be a testimony to your business, use digital marketing to the fullest, its powers are extraordinary.
Patao has now expanded to four wheels and is quickly establishing a monopoly in this market as well. This new extension has also helped increase their two-wheeler customer base as customers tend to prefer using the same product for different