IMPACT OF RIDE SHARING SERVICE IN

COMMUNICATION SYSTEM OF BANGLADESH: A

STUDY ON DHAKA CITY
Certification of Approval

This is to certify that Asif Kamal, roll number- 89, 21 st batch, Student of Department of
Marketing, University of Dhaka has completed his thesis paper on the topic ‘Impact of ride
sharing service in communication system of Bangladesh’

I hereby approve her thesis paper for viva-voce.

--------------------------------------

Supervisor

Md. Moktar Ali

Professor

Department of Marketing

Faculty of Business Study

University of Dhaka
Letter of Transmittal

March 31, 2019

Md. Moktar Ali

Professor

Department of Marketing

University of Dhaka

Subject: Submission of thesis report

Sir,

With due respect, I would like to present you this thesis report that I have prepared as a
requirement of my thesis program titled as ‘Impact of ride sharing service in communication
system of Bangladesh- a study on Dhaka city’. I am glad to work under your guidance and
supervision throughout the course of my thesis. I have utilized all my efforts successfully to
complete the report appropriately and effectively, as much as possible. The unique experience
that I have achieved conducting this report will help me to utilize this in shaping my future
endeavors.

I candidly wish that my research analysis of report work will help to give a brief idea about the
factors which has impact on consumer purchase decision of counterfeit cosmetics products. I
hope you will find this report worth all the labor I have put in it.

Thanking You,
Asif Kamal
Roll: 89
Section: B
B.B.A 21st Batch
Department of Marketing
University of Dhaka.

Acknowledgement

At the very beginning, I would like to express my deepest gratitude to almighty Allah for giving
me the strength and the composure to finish the report within the time.

I am grateful to my supervisor, Md. Moktar Ali, Professor, Department of marketing,

Faculty of Business Studies, University of Dhaka –for supporting and advising me to continue
my study on my topic- ‘Impact of ride sharing service in communication system of
Bangladesh- a study on Dhaka city’. I would like to express my sincere gratitude to my
supervisor- Md. Moktar Ali sir for the continuous support of my BBA dissertation, for his
patience, motivation, enthusiasm, and immense knowledge. His guidance helped me in all the
time of research and writing of this thesis. I could not have imagined having a better advisor and
mentor for my study. I would also like to thank the other faculties of our department for
their enormous support to continue with the BBA degree.

At last, I would like to express my thankfulness to my friends especially my group mates. The
project work provided us the opportunity to get closer and strengthen our friendship.
Contents
Executive Summary.........................................................................................................................7

Introduction......................................................................................................................................8

Problem definition and objective.....................................................................................................8

Literature Review............................................................................................................................9

Approach to the study....................................................................................................................11

Study Methodology.......................................................................................................................11

Theoretical framework for the hypothesis testing.....................................................................12

Survey Questionnaire for the study...........................................................................................13

Definition of Ride-sharing service.................................................................................................14

Ride-sharing in Bangladesh...........................................................................................................14

What created the room for ride-sharing in Bangladesh?...............................................................15

Ride sharing making difference the communication system in Bangladesh.................................16

Survey data analysis and interpretation of the findings.................................................................16

Hypothesis testing and interpretation of hypothesis output...........................................................21

Findings of the Study.....................................................................................................................23

Recommendations..........................................................................................................................23

Limitation of the study...................................................................................................................23

Future of the ride sharing apps in Bangladesh...............................................................................23

Conclusion.....................................................................................................................................24

Reference.......................................................................................................................................24

Appendices....................................................................................................................................24
Executive Summary
In last few years apps based ride sharing service has considerably disrupted traditional transport
system especially in Dhaka city. Ride-sharing has become a popular and quintessential
phenomenon in most of the city dwellers everyday life. The immense acceptance of ride-sharing
mainly ascribes to its door-to-door pick up and drop off service, ease of finding a vehicle in
emergency hours and no “decline culture”, that the city dwellers are habituated to while finding
rides in the era of three-stroke wheelers. In this study it has been assessed that what impact ride
sharing service has on traditional transport system of Dhaka city. Seven hypothesis has been
developed to test the statistical significant by analyzing through SPSS. Independent variable for
the study to examine the impact of ride sharing service in Dhaka city communication like
Income of the customer, Convenience of using ride sharing service, cost of ride sharing use,
promo/ discount provided by companies, and availability of ride sharing service in Dhaka city.
All the seven independent variable has been examined through SPSS analysis to know which
variables have greatly impact ride sharing service in Dhaka city. Demographic and some generic
questionnaire has been analyzed through self structured survey questionnaire. Findings of the
hypothesis testing has been described and the findings of the study also described throughout the
report. Finally recommendation has been provided and limitation while conducting the survey
also assessed. All the graphs and SPSS analysis has been pointed in appendices section.
Introduction
Technology has drastically changed the way of daily communication across the world and most
importantly transportation system has got dramatic changes as the innovation of app based ride
sharing service. The use of app-based, on-demand ride-sharing services has spread rapidly and
become more and more important in urban transport. Companies such as Uber, Pathao, Amar
ride, Sohoz ride, Obhai, etc. may provide better service with less waiting time and higher vehicle
occupancy when compared to traditional transportation services such as private auto, public
transit and taxis. This new type of transportation service is defined as ride-sharing (Idlc.com, 2019).
This increase in the ride-sourcing availability, due to the introduction of those app based
transportation, may impact travel habits and change the local, regional and national travel
demand. The research will show the impact of this disruptive innovation in transportation system
and users’ differences in travel characteristics comparing the new ride-sharing services (Weekend
and Reaz, 2019). Ride-sharing has become a popular and quintessential phenomenon in most of the
city dwellers in Dhaka and Chittagong of Bangladesh. The impact of bike rideshare is evident in
50% hike in bike sale in 2017 (Dhaka Tribune, 2019). The immense acceptance of ride-sharing
mainly ascribes to its door-to-door pick up and drop off service, ease of finding a vehicle in
emergency hours. From another aspect, rise in purchasing power of middle class bracket of the
society, made rooms for the ride-sharing space to flourish. And this phenomenon is now not only
restricted within the bounds of the mega city of Dhaka; this is spreading at a rapid pace in other
parts of the country as well (Dhaka Tribune, 2019).

Problem definition and objective

As apps based ride sharing transportation facilitating the daily commute of City people by
providing flexible and customized service. The proposed subject for the study is “what level of
impact ride sharing apps has on the communication system of Bangladesh” Dhaka city as the
base object for this study.

The aim of the study is to figure out what impact the ride sharing apps has on the traditional
transport system and how public attitude is changing to this disruptive way of the commute.
Overview of the objectives:

 To compare the different attitude of users to apps based ride-sharing service comparing
with traditional transport service.
 To evaluate the actual impact of ride sharing apps on daily public communication system
in Dhaka city.
 To find out how it covering up the traditional transport system
 To measure the level of customers experience regarding app based ridesharing
communication

Literature Review
Nicholas, J. (2010) little published literature on the travel characteristics of ride-sourcing users
was found. Because this type of transportation has only been in operation for 5 years and still not
operated everywhere, transportation planners have not yet considered their impact on how
systems may be impacted.

Santi et al. propose a share ability network structure to model the spatial and temporal proximity
of the taxi trips and apply a classical graph algorithm to determine the best trip sharing strategy.
Their study reveals that a large amount of taxi trips are routinely shareable while keeping the
traveler discomfort low in terms of prolonged travel time in big cities (e.g., New York).

Dynamic taxi and car ride-sharing match’s real-time trip requests with running taxis. The trip
requests are not required to be known beforehand, and the taxis and cars are allowed to re-route
and pick up new trip requests on the fly. Because of the dynamic nature of the problem, it
requires the system to be able to respond quickly while receiving a new trip request. Ma et al.
propose a T-Share service model with an efficient spatio-temporal taxi index structure to quickly
retrieve a candidate taxi to serve the new trip request which satisfies the pick-up and drop-off
delay constraints of the request and meanwhile incurs the minimum additional travel distance
(Roe, 2017).

Ride sharing services may be offered in two basic forms: static and dynamic car sharing.

• Static Ride Sharing: In static sharing, users can request to offer or demand a ride. Successful
matches between users occur when users find each other based on the request which was
published. The application gathers a lot of data, helping users to narrow their search based on
their preferences. However, it must be noted that it doesn’t work in real time and users can only
communicate through emails which can cause gaps in exchange of information (Haddad, et al,
2013).

• Dynamic Ride Sharing: Dynamic ride sharing is a form of car sharing which is heavily reliant
on technology and smartphones. It allows users access to the application in real time and the
GPS tracker helps pinpoint the exact location of the fleet of vehicles. The application finds
overlapping routes based on the inputs of the users. The users can choose to operate the
application either as a driver or a passenger. The driver is the one responsible for deciding which
routes are to be taken. The passenger then meets the driver at a predetermined meeting point and
time after the driver accepts his or her ride request (Haddad, et al, 2013).

A sophisticated ride sharing scheme will typically go through the following steps:

Users register in the system and go through a form of pre-qualification process to be a part of the
service in which they will go through a verification of their identity and driver’s license so that
they can be able to use the service in the future without needing to interact with any member of
the staff (Urban transport service innovations, 1979).

The users will go on to use the vehicles on a personal basis or behalf of an employer.

The user may be billed on the basis of minutes or hours driven or based on the distance covered.

Users may have to give an additional subscription fee to be a part of the service along with the
charges on each usage.

Users can spontaneously choose to use the service as per their needs or make advanced
reservations ahead of time.

The vehicles will be available in a range of locations across the area of the service’s coverage.

Servicing of the cars is done by the car service operator’s staff on occasional basis. Users may be
incentivized to refuel the car or clean it after use. (Le Vine, et al, 2014)

Ride sharing targets a wide variety of customers groups who can range from commuters,
students, and children (Bührmann, 2017). It has been seen that the users have a specific socio-
economic profile. They tend to be well educated and predominantly male young adults (between
the ages of 25-45). They live in urban neighborhoods and are either single or are childless
couples who are from middle or high income households. They either own a single car or no car
at all or have been heavy users of non-car forms of transport such as public transport, cycling and
walking (Le Vine, et al., 2014).

It must be noted that motorization has been responsible for 72 percent of world carbon dioxide
emissions. It has been estimated that transport may account for more than 50 percent of all
carbon dioxide emissions by 2050 (Banister, et al., 2011). Automobiles are a prime source of
carbon dioxide and other dangerous gases such as carbon monoxide, nitrogen oxides and
hydrogen carbons (Katzev, 2003). Efficient road traffic can only be brought about by decrease in
the number of cars used in the roads. The increased number of occupancies in a particular
vehicle will bring down the overall number of vehicles in the roads (Kuntzky, K. et al., 2013).

The literature research revealed that no significant research has been done on ride-sharing users’
perception about the drastically impact on ongoing communication system. Thereupon, the
research approach focused on the usages of ridesharing and to evaluate the role in transportation
planning.

Approach to the study

In order to accomplish the objectives of the study, a detailed research approach is followed. The
first step in the research approach is to perform a literature and policy review.

To get primary data, the second step in this study approach is to develop a survey to conduct in
Dhaka area, where ride-sharing introduced and made available. This survey included questions
on basic background information, travel habits of ride-sharing users and how ride-sharing
changes users’ travel attitudes.

The third step in the research approach is analyzing the completed surveys and questionnaire.

Finally, the fourth step in the approach is evaluating and calculating the potential impact of ride-
sharing on the transportation system and on planning process including travel demand and
attitude of transport users in Bangladesh.
Study Methodology
Research Design

The research design is the blueprint of the study that helps to present the methodology that will
be used to conduct the analysis. An exploratory approach will be used to analyze the problems
and answer the research questions.

The research will attempt to see the consumers’ perceptions about ride sharing service in
Bangladesh by looking into the following research question:

 What is the impact ride sharing service has on daily communication system of
Dhaka city?

Theoretical framework of ride sharing service in Bangladesh

Hypothesis for the study:

 H1: Convenience of using of ride sharing service has positive impact on choosing
ride sharing service over traditional transport system
 H2: Time is a crucial factors has in using of ride sharing service in Dhaka City
 H3: Cost of ride sharing service has negatively impact on using of ride sharing
service
 H4: Promo or discount by ride sharing company push people to use ride sharing
instead of using traditional transport service
 H5: Income level of the users have impact on using of ride sharing service
 H6: Availability of ride sharing service has impact on using ride sharing service
instead of traditional transport service.
 H7: Purpose of the trip has impact on ride sharing service

Theoretical framework for the hypothesis testing

Independent variables Dependent variable

 Convenience of using ride sharing service
(COURSS)
Time factor
(TF)
Cost of ride sharing service
(CORS) Impact on daily
Promo or discount by operator company
communication system
(P/D)
Income level of customer
(ILC)
Purpose of the trip
(POT)
Availability of ride sharing service
(ARSS)

The objective of this study is to analyze the impact of ride sharing service on daily commute of
Dhaka city transport users. The purpose of this research is exploratory since it aims to probe into
the notion of ride sharing which is a relatively novel idea for Dhaka city. The outcome of this
research may be used to resolve a particular social problem, namely that of improving the
process of commuting within Dhaka city.

Data collection

Collection of data is one of the difficult and lengthy processes of a research study. In this study,
the primary data will be collected by conducting individual interviews of ridesharing customer’s
through survey questionnaire to observe the current thoughts of the users. On the other hand, the
secondary data will be collected from the secondary sources such as websites of the ride sharing
apps, books, articles, journals, government reports that are published in printed version or are
available over the internet.

Sample size

Both primary and secondary data will use to collect information to fulfil the study. As the study
is based on Dhaka city, to conduct survey 120 ride sharing users have targeted as they are the
target profile users of typical ride sharing service. Respondents are from Dhaka city who have
mixed experienced in using of ridesharing apps and belong to different age-group, different
income level, different occupation like student, service holder, business person etc.

Both open-ended and close ended survey questionnaire has been used to collect primary
information from online and offline.

Definition of Ride-sharing service

Ride-sourcing was firstly defined as a new type of ridesharing which can provide services that
use Geographic Information Systems (GIS) and global positioning systems (GPS) technologies
on Internet-enabled “smartphones” to organize ridesharing in real time, just minutes before the
trip takes place (3). Drivers post their trip as they drive, and potential riders request rides right
before their desired departure time. Ride matching software automatically matches riders to
drivers with similar trips and notifies each party’s smartphone Nelson D. CHAN. (2012). When a
ride is needed, customers use an app to make the arrangement. Shortly thereafter a paid driver
pulls up and takes the passenger to their destination. The transaction is paid via credit card stored
electronically Nelson D. CHAN. (2012).

Ride-sharing in Bangladesh
As much like most of the trends in western countries flow to this side of the world behind time,
ride-sharing is also no exception. Bangladesh witnessed a leap in ridesharing space with the
emergence of Pathao, the most popular local ride sharing company which got off the ground in
2016 and the entrance of Uber in Bangladesh market in late 2016. At this juncture, besides,
Pathao and Uber, quite a few ride-sharing companies are emerging to cater to the mounting
public demand. As of November 2017, an estimated 500,000 commuters have opted to avail
ride-hailing on cars and bikes via apps - also known as e-hailing. This number was 10,000 in
January, 2018. In 2016, ride-hailing tech companies stormed the Bangladeshi market with Uber,
Pathao and Amar Ride launching services in Dhaka (Idlc.com, 2019). Such initiatives have set a
trend of using mobile apps to order a taxi or motorbike for either sole or shared travel.
Interestingly enough, Pathao began as an e-delivery way back in 2015. Using its fleet of
motorbikes, the company was successful but it was not till October 2016, when Uber launched in
Dhaka in November 2016, Pathao decided to introduce motorcycle ride sharing services.
Notwithstanding their popularity, Pathao is not the pioneer in motorcycle based ride-sharing in
Bangladesh. That honor belongs to Share-A-Motorcycle or SAM, which was launched in May,
2016. However, apparently Pathao’s superior business model has made them more successful
and popular. It appears that Pathao’s success was noticed by Uber because in the final quarter of
2017, Uber launched Uber Moto - following the model of motorbike taxi service Pathao
provides. In essence, Uber has essentially set the tone for companies such as Chalo, Dhaka Moto,
Bahon, Amar Bike, Amar Ride, Taxiwala, Dako, Ezzyr, Goti and Hellow Ride, all of whom have
created a booming e-hailing market (Idlc.com, 2019).

What created the room for ride-sharing in Bangladesh?

Worsening traffic condition: With 36% of the country’s urban population living in capital
Dhaka, it has become one of the world’s most densely populated cities. According to a World
Bank estimate, in the last 10 years, average traffic speed has dropped from 21 km/hour to 7
km/hour, only slightly above the average walking speed (Idlc.com, 2019). Congestion in Dhaka
eats up 3.2 million working hours per day. In connection to the horrid statistics, bike brings out a
sigh of relief in young urban dwellers being the fastest mode of transportation (Dhaka Tribune,
2019).

Convenience: Public bus and CNG are the two mass transportation mostly used by Dhaka
dwellers. Besides the lack of comfort issue in a public bus, one may not be beneficial commuting
in a bus in a rush time as it stops in different place to take passengers. Although, public bus
service has been improved over the time, there are still complains such as not getting a seat in
sitting-service bus, misbehavior of the conductors and so forth. The other option remains for the
mass commuters is CNG. It has been discerned that Dhaka dwellers, catering to all ranks and
walks, have formed a dissatisfaction for CNG due to higher asking fare, declining commute
requests and to some extent, misbehavior of the CNG drivers. Ride-sharing fits into the space in
between the costing and convenience of bus and CNG, which created a room for the ride-sharing
services to thrive (Dhaka Tribune, 2019).

Growing middle class: Compared to 38% population classified as middle income or affluent in
Indonesia, only 7% of total population in Bangladesh is middle-income (Idlc.com, 2019).
Ride sharing making difference the communication system in Bangladesh
Bangladeshi market seems to be sportingly participate in the ride-sharing space, for some good
reasons.

Fast commuting: According to urban transport experts, the speed of cars is high (18.3km/h)
during AM period but much slower (10.7km/h) in the PM period. Therefore, an average speed of
14 km/h can be estimated. Bike is the fastest mode of transportation, which can go as long as 16
km/h. It indicates that a commuter taking a bike ride share can reach desired destination lot early
than by bus or car or CNG (Idlc.com, 2019).

Employment creation: An estimated 40,000 drivers/ riders under the ride-sharing network
implies the job creation potential of this sector. From a car/bike owner/ driver’s perspective,
Uber-Pathao has brought about tangible positive benefits. A survey by two Senior Research
Associates of Policy Research Institute (PRI) reveals that the gross income of a ride-share car
owner is some BDT 60,000 a month. The average monthly income of a Dhaka resident is
estimated at around BDT 30,000 a month, which is half of what an Uber car owner can earn
(Idlc.com, 2019).

Comfort with reasonable costing: A ride-share car user spends some BDT 300/trip. In other
words, a frequent ride-share user ends up saving threefold without losing the comfort of a car
experience. A comparatively hassle-free ride-share bike user spends less than BDT 150/trip.
Meanwhile, a CNG user spends some BDT 250/trip and enjoys none of the improved services
(such as door2door pickup-drop-off) of a rideshare product (Dhaka Tribune, 2019).

Survey data analysis and interpretation of the findings

Demographic information of Respondents who are using ride sharing service

 Age variation in using of ride sharing services in Bangladesh

Age variation Participants

10-20 years 20
20 -30 years 45
30-40 years 30
40-50 years 15
Above 50 years 10
 Age vaiation of the respondents
10; 8%
20; 17%
15; 13%

30; 25%
45; 38%

10years-20 years 20 years-30 years 30 years-40 years

40 years-50 years Above 50 years

Figure: 1

The status on above chart shows that middle aged people basically from 20 years to 30 years re
using rid sharing services more as they lead the busiest life due to educational purpose as well as
employment purpose.

 Gender distribution of ride sharing service respondents

Among the respondent who are the 120 ride sharing service users maximum respondent are
male. The ratio is showing below

Male respondents 85

Female respondents 35
 Dender distribution and using
parcentage

Make user
29% Female user

71%

Figure: 2

Among 120 respondent, the statistic shows that male user of the ride sharing service is more than
female users. The percentage is, like 71% male users use ride sharing services whereas 29%
female users use ride sharing service

 Income status of the respondent who have experienced ride sharing service in
Dhaka city

Respondent income status respondent

>10000 30
10000-20000 32
20000-30000 38
30000-40000 12
40000< 08
From survey data, the following graph shows that income group from 20000-30000 tk is more in
number of making ride sharing service. Then the income level from 10000-20000 tk is also
following the previous status in using ride sharing service. Less than 10000 tk income group also
making more ride sharing trip for mainly educational purposes and for entertainment.
 Respondent income status
Less than 10000 10000-20000 20000-30000
30000-40000 Above 40000

8; 7%
12; 10% 30; 25%

38; 32%
32; 27%

Figure: 3

 How much money spent by the users in ride sharing app service in a week?

Money spent by the respondent Number of

in a week respondent
Less than 1000 45
1000-2000 65
2000-3000 10
3000-4000 -
Above 4000 -

Money spent by the respondent in per

week in using ride sharing service
Less than 1000
1000-2000
8%
2000-3000
38% 3000-4000
Above 4000

54%
Figure: 4

 What are the daily trip purposes of the respondent (ride sharing users)

To conduct the survey over 200 respondent in Dhaka city about the experience on ride sharing
apps, the following category helps the respondent to classify their purposes of using ride sharing
service. Here the classification objects:

Ride users purposes Number of

respondent
Social work 10
Recreation and entertainment 24
Office work 45
Educational purpose 36
Other purpose 05

Respondent's purposes when using ride

sharing
Social work
4% 8%
Recreation and
entertainment
30% Office work
20%
Educational purpose
Other purpose

38%

Figure: 4

Most of the respondent uses ride sharing service for the official purpose and the percentage is
about 38%, the percentage of educational purposes users is about 30% and people also uses ride
sharing service for social work, for shopping and entertainment purposes.

 How many trips per week do you make by using ride sharing apps?

Here the survey result shows the number of weekly trips made by the randomly selected
respondent for their above mentioned purposes.
 Range of trips number Number of
in week respondent
More than 15 trips 05

10 trips-15 trips 28

5 trips-10 trips 50

Less than 5 trips 37

The statistics from the survey question result shows the large number of respondent uses 5-10
trips and the percentage is almost 42%, 28 users make 10-15 trips in week and the percentage is
31%.

Number of trips in a week

More than 15 trips

4% 10 trips-15 trips
31% 23% 5 trips-10 trips
Less than 5 trips

42%

Figure: 5

 Why ride sharing apps is more preferable to you?

By conducting survey over 120 respondent the following reasons are found why people prefer
ride sharing service more over traditional transport service in Dhaka city.

o Users think that ride sharing is flexible

o Fast Trips Any Time, Almost Anywhere
o Avoid the Cost of Owning a Personal Vehicle
o Convenient to make trip
o Easy pick up and drop
o Less time consuming
Hypothesis testing and interpretation of result
Analysis and Findings:
Data was collected from 120 respondents in total who had completed the questionnaire. Of these
71% were male and 29% were female. Among them 20.2% were in the age group of 10-20 years,
45.4% were from 20-30 years, 30.3% were from 30-40 age group, 15.1% were from 40-50 age
group and 10.8% were above 50 years.
Around 42% respondent experienced 5-10 trips in a week whereas 54% respondent spend1000-
2000 TK for ride sharing service.

People use ride sharing service for various purposes like- for office work, for educational
purpose, for recreation and entertainment purposes and also for social works. Mostly, around
38% uses ride sharing service for office work and 30% uses ride sharing service for education
purposes.

Middle income class people frequently use ride sharing service as percentage shows more than
70% respondent are from 20000-40000 income level where mostly 35% are from 20000-30000
income level and rest are from 30000-40000 income level.

Hypothesis Testing and Result:

Multiple regression was used to test the hypotheses that is to test the effect of the identified
factors on customer ride sharing service using. H1-H7 specified how each of the distinct factors
including convenience, time, cost of ride sharing, promo or discount, income, purpose and
availability will influence the ride sharing service in Bangladesh. To test these seven hypotheses,
multiple regression was conducted to examine if ride sharing service has impact on daily
communication depends on these seven mentioned factors. The regression model was found
statistically significant (p = 0.00 < 0.05) and the model fit was good as the value of R Square = .
736. The value of R Square = .736 means about 73.6% of the variance in ride sharing service can
be explained by the variance in convenience, time, cost, promotion, income, purpose and
availability. Thus these seven mentioned variables influence around 73.6 percent of the total
variance in sample respondents’ impact of ride sharing service. The value for Adjusted R 2 = .719
is the value of the coefficient of multiple determination adjusted for degrees of freedom. It
ensured that when adjusted for degrees of freedom, the seven variables, namely, convenience,
time, cost, promotion, income, purpose and availability explain 71.9 percent of the variation in
the level of impact on ride sharing service in Bangladesh.

Linear regression was used to test the hypotheses that there is to test the effect of different
variables on assessing impact of ride sharing service in Bangladesh. The regression equation in
the context of the present study can be presented as follows:

Y= α+ β1x1+ β2x2+ β3x3+β4x4+ ……………………………………. + βnxn

Y = α+ β1 Convenience + β2 Time + β3 Cost + β4 Promo or discount + β5 Income +β6 Purpose + β7

Availability.

The p values of those mentioned factors namely time, cost, income and promo or discount are .
000, .001 and .002 and .003. Thus, they are statistically significant (p < .05) indicating that time,
cost, income and promo/discount have significant influence on the impact of ride sharing. But
the p values of convenience, purpose and availability are .239, .990 and .149 respectively. Thus,
they are statistically insignificant (p>.05) indicating that they have no significant influence on
ride sharing in Dhaka.

In particular, cost (beta = .256, p < 0.05) and income (beta = 0.338, p < 0.01) are positively and
significantly related to ride sharing service in Dhaka city transport system. This indicates that a
one unit decrease in cost can result in a corresponding increase in ride sharing service by .256
units. Likewise, with a one unit increase in agreement from riders that income in not standard,
they also agreed that their level of ride sharing with the experience of riding reduced
significantly by .338 units. Besides, promo/discount (beta = .402, p < .01) and time (beta = .015,
p < 0.05) are strongly linked to ride sharing service. The impact of promo/discount and time
factor are relatively greater.

The regression analysis, presented in this study, did not lend support to the preliminary
correlation analysis on ride sharing and convenience (beta= -.111, p>.01), purpose (beta= -.004,
p>.01) and availability (beta= -.188, p>.01) are found be negatively related to ride sharing
service, although these are not significant at the level of significance in this study.

Finally, it can be said that all H2, H3, H4 and H5 namely time, cost, promo/discount and income
will impact the ride sharing service in Dhaka city. But in case of H1, H6 and H7 namely
convenience, purpose and availability will not influence ride sharing service in Dhaka.

Findings of the Study

According to the survey output, male users are most likely to use ride sharing transport service
and Age group from 20-30 years and 30-40 years old people are more like to use ride sharing
service for different purpose in Dhaka city. Ride sharing users in Dhaka city think that ride
sharing is flexible, Fast Trips Any Time, Almost Anywhere, Avoid the Cost of Owning a
Personal Vehicle, Convenient to make trip, Easy pick up and drop, less time consuming

In Dhaka city people mostly use ride sharing service to consider time factors as ride sharing
service is less hassle-free, less time consuming and convenience to use. Pick time and drop time
is considerable in ride sharing service comparing traditional transport system in Dhaka city.

Promo and discount by the ride sharing company push customers to use ride sharing service then
traditional transport system in Dhaka city. Ride sharing companies using promo and discount to
attract and retain the customers. This really impacts to choose ride sharing service instead of
traditional transport which is positively significant by the above hypothesis testing H4.

H5: Income level of the ride sharing users has considerable impact in using of ride sharing
service in Dhaka city. The impact of this constant is significant at 0.05 significance level. So
income level is a crucial factor to this study where it has impact in making ride sharing service
for daily communication.

Cost of ride sharing service namely H2, also has impact on using of ride sharing service in
Dhaka city. It negatively impact as more 30% respondent think that ride sharing service is high
priced over traditional transport in Dhaka city where only less than 17% respondents think ride
sharing has low priced. So the statistical value of cost of ride sharing is significant at <0.05
significance level as a constant if cost increase people try to avoid ride sharing service.

Purposes of trip made by Dhaka city people has less impact which is statistically not significant
at 0.05 significant level. So this factor is not likely more important over time factor, Cost of ride
sharing, Promo/discount by company and income of the customers. So purposes of the trip not
impact in ride sharing service at Dhaka city.

Availability of ride sharing company also has nonsignificant impact on ride sharing service use
in Dhaka city. Different users have different trip purpose, so purposes of trips have less impact
on using of ride sharing service in Dhaka city comparing with traditional transport system in
Dhaka.

Traditional transport system in Dhaka city is not convenient for regular commute of Dhaka city
people as it is congested, unregulated, more hassle in move, sever traffic jam all over the day and
reckless driving of less trained drivers. So people in Dhaka city wants a convenient, time saving
and hassle free transport system which is basically apps based ride sharing service is now.

Throughout the survey result it is clear that middle aged people with a standard income wants
convenient, time saving, hassle free and free move and this emerge ride sharing service and
taking considerable attention over traditional transport system in Dhaka city.

Recommendations
Security and privacy is a great concern in apps based ride sharing service in Bangladesh. Apps
based ride sharing company has to develop the privacy policy and security system to get positive
vive from actual and potential customers (Weekend and Reaz, 2019).

Drivers sometimes lead ride sharing trips in dangers so trained of the driver is most important
task for ride sharing company to accelerate service.

Deregulated fares must be controlled where Govt. and effective authority need to perform
regulatory tasks to control deregulated fares among the ride sharing service companies.

Insurance policy has to be developed for both public and vehicle in Dhaka city. Passenger
insurance is not properly regulated in ride sharing service and that’s why regulatory commission
Like BRTC has to perform strict rule to develop passenger insurance policy in ride sharing
service (Weekend and Reaz, 2019).

Reckless driving is a serious concern in now a days, so ride sharing companies have to regulate
the license as well as have to evaluate driver performance from passenger feedbacks.

Limitation of the study

Future of the ride sharing apps in Bangladesh

 Indian Ola is also weighing options for a few other markets including, UK, Bangladesh
and Sri Lanka.
 The way China’s giant ride-hailer Didi Chuxing is expanding its operations in Asia and
investing in other ride-sharing companies like Uber and Ola, it is not unlikely for them to
venture into Bangladeshi market having discerned the market potential.
 As a result of ride-sharing being mainstream in the western part of the world, car sales
dropped at a moderate level in the U.S.A. Almost 20% of the ride-sharing users in the
U.S.A delayed or avoided buying their own car due to availability of ride-sharing
services. If ride-sharing grows at the current pace in Bangladesh, car sale in Bangladesh
may also plunge.

Conclusion
In the era of technological advancement apps based ride sharing service has got massive
appearance all over the world. In Bangladesh this has drastically changed the way people
commute daily. Pathao, Uber, Chalo, Dhaka Moto, Bahon, Amar Bike, Amar Ride, Taxiwala,
Dako, Ezzyr, Goti and Hellow Ride etc. are some common form of apps based service provider
in Dhaka city. In present transport system of Dhaka city people are totally bored of unregulated
traffic system and sever traffic jam. So advancement of ride sharing in all over the world can
save time, will be more convenient to use, hassle free and most importantly people can move in a
relax way that was impossible in Dhaka city (Weekend and Reaz, 2019). Income of people, cost of
ride sharing service, time, promo and discount have considerably impact whether to use ride
sharing service rather using traditional transport in Dhaka city. By developing policies and
increasing security and privacy issues this apps based ride sharing service can cover up the
whole country (Roe, 2017).

Reference
S. Ma, Y. Zheng, and O. Wolfson, “T-share: A large-scale dynamic taxi ridesharing service,” in
Data Engineering (ICDE), 2013 IEEE 29th International Conference on, April 2013, pp. 410–
421.

Shemshadi, Q. Z. Sheng, and W. E. Zhang, “A decremental search approach for large scale
dynamic ridesharing,” in Web Information Systems Engineering - WISE 2014 - 15th
International Conference, Thessaloniki, Greece, October 12-14, 2014, Proceedings, Part I, 2014,
pp. 202–217.

P. Santi, G. Resta, M. Szell, S. Sobolevsky, S. H. Strogatz, and C. Ratti, “Quantifying the

benefits of vehicle pooling with shareability networks,” Proceedings of the National Academy of
Sciences, vol. 111, no. 37, pp. 13 290–13 294, 2014. [Online]. Available: http:
//www.pnas.org/content/111/37/13290.abstract

Dhaka Tribune. (2019). 2017 in review: A revolution in public transportation. [online] Available

at: https://www.dhakatribune.com/bangladesh/dhaka/2017/12/29/2017-review-ride-hailing-tech-
companies-saw-rapid-growth [Accessed 11 Feb. 2019].

Idlc.com. (2019). Ride- Sharing in Bangladesh: Disrupting the way we commute. [online]

Available at: https://idlc.com/mbr/article.php?id=125 [Accessed 30 Mar. 2019].

Roe, J. (2017). A study on exploring the future mobility service focused on car-sharing
system. KOREA SCIENCE & ART FORUM, 29, pp.75-87.

Urban transport service innovations. (1979). Washington: National Academy of Sciences.

Partners, L. and Partners, L. (2019). Global Ride-Sharing and Opportunities in Bangladesh.

[online] DATABD.CO. Available at: https://databd.co/stories/global-ride-sharing-and-
opportunities-in-bangladesh-1308 [Accessed 30 Mar. 2019].
Weekend, S. and Reaz, S. (2019). Ride sharing is a relief but not yet a permanent solution.
[online] The Daily Star. Available at: https://www.thedailystar.net/star-
weekend/perspective/ride-sharing-relief-not-yet-permanent-solution-1570978 [Accessed 30 Mar.
2019].

Appendices
Survey Questionnaire for the study

Demographic analysis of the respondent regarding Age, gender, Occupation, Income status

i. Gender:
1. Male
2. Female
ii. Age distribution of the respondent
1. 10-20 years
2. 21-30 years
3. 31-40 years
4. 41- 50 years
5. Above 50 years
iii. Monthly income status
1. Less than 10000
2. 10000-20000 TK
3. 21000-30000 TK
4. 31000-40000 TK
5. 41000-50000 TK
6. Above 50000 TK
iv. How many ride sharing trips you made per week?
1. Less than 5 trips
2. 5-10 trips
3. 10-15 trips
4. 15-20 trips
5. More than 20 trips
 v. Trip purposes of the respondent when using ride sharing service
1. Social work
2. Education purpose
3. Office work
4. Entertainment
5. Other
vi. Monthly spent by customer for using ride sharing service
1. Less than 1000 TK
2. 1000-2000 TK
3. 2000-3000 TK
4. 3000-4000 TK
5. More than 4000 TK

Hypothesis variable question

I. Convenience of using of ride sharing service has positive impact on choosing ride
sharing service over traditional transport system
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
II. Time is a crucial factors has in using of ride sharing service in Dhaka City
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
III. Cost of ride sharing service has negatively impact on using of ride sharing service
1. Strongly disagree
2. Disagree
3. Neutral
 4. Agree
5. Strongly agree
IV. Promo or discount by ride sharing company push people to use ride sharing instead
of using traditional transport service
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
V. Income level of the users have impact on using of ride sharing service
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
VI. Availability of ride sharing service in Dhaka city has impact on using ride sharing
service instead of traditional transport service

1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree
VII. Purposes of trip has impact on choosing ride sharing service
1. Strongly disagree
2. Disagree
3. Neutral
4. Agree
5. Strongly agree

Regression analysis output

 Descriptive Statistics
Mean Std. Deviation N
Impact 3.1217 .97868 120
(COURSS) 3.38 1.175 120

(TF) 3.69 1.098 120

(CORS) 3.50 1.237 120

(P/D) 3.31 1.201 120

(ILC) 3.25 1.324 120

(ARSS) 3.27 1.228 120

(POT) 3.01 1.293 120

Correlation

Correlations
(COURSS
Impact ) (TF) (CORS) (P/D) (ILC) (ARSS) (POT)
Pearson Impact 1.000 -.444 .644 .739 .823 .822 .819 .629
Correlation
(COURSS) -.444 1.000 -.344 -.434 -.495 -.516 -.514 -.826

(TF) .644 -.344 1.000 .851 .621 .649 .622 .499

(CORS) .739 -.434 .851 1.000 .716 .749 .714 .617

(P/D) .823 -.495 .621 .716 1.000 .934 .975 .740

(ILC) .822 -.516 .649 .749 .934 1.000 .956 .784

(ARSS) .819 -.514 .622 .714 .975 .956 1.000 .755

(POT) .629 -.826 .499 .617 .740 .784 .755 1.000

Sig. (1-tailed) Impact . .000 .000 .000 .000 .000 .000 .000

(COURSS) .000 . .000 .000 .000 .000 .000 .000

(TF) .000 .000 . .000 .000 .000 .000 .000

(CORS) .000 .000 .000 . .000 .000 .000 .000

(P/D) .000 .000 .000 .000 . .000 .000 .000

(ILC) .000 .000 .000 .000 .000 . .000 .000

(ARSS) .000 .000 .000 .000 .000 .000 . .000

 (POT) .000 .000 .000 .000 .000 .000 .000 .

N Impact 120 120 120 120 120 120 120 120

(COURSS) 120 120 120 120 120 120 120 120

(TF) 120 120 120 120 120 120 120 120

(CORS) 120 120 120 120 120 120 120 120

(P/D) 120 120 120 120 120 120 120 120

(ILC) 120 120 120 120 120 120 120 120

(ARSS) 120 120 120 120 120 120 120 120

(POT) 120 120 120 120 120 120 120 120

Model Summaryb
Change Statistics
Adjusted R Std. Error of R Square Sig. F
Model R R Square Square the Estimate Change F Change df1 df2 Change
a
1 .858 .736 .719 .51876 .736 44.505 7 112 .000
a. Predictors: (Constant), (POT), (TF), (P/D), (COURSS), (CORS), (ILC), (ARSS)
b. Dependent Variable: Impact

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 83.840 7 11.977 44.505 .000b
Residual 30.141 112 .269

Total 113.981 119

a. Dependent Variable: Impact

b. Predictors: (Constant), (POT), (TF), (P/D), (COURSS), (CORS), (ILC), (ARSS)

Coefficientsa
Unstandardized Standardized 95.0% Confidence Interval for
Coefficients Coefficients B
Model B Std. Error Beta t Sig. Lower Bound Upper Bound
1 (Constant) 1.218 .466 2.614 .010 .295 2.141

(COURSS) -.093 .078 -.111 -1.184 .239 -.248 .062

 (TF) .013 .083 .015 .161 .000 -.151 .178

(CORS) .203 .085 .256 2.378 .001 .034 .372

(P/D) .328 .181 .402 1.810 .003 -.031 .686

(ILC) .250 .141 .338 1.773 .002 -.029 .529

(ARSS) -.003 .216 -.004 -.013 .990 -.432 .426

(POT) -.142 .098 -.188 -1.453 .149 -.337 .052

a. Dependent Variable: Impact