The document is a critical analysis of Pathao, a transportation and delivery service in Dhaka, Bangladesh, discussing its services, marketing strategies, challenges, and competition. Pathao was founded to address transportation issues in the city and has grown to include services such as bike rides and food delivery. The paper highlights various market segments and details the major challenges faced by Pathao, including competition, consumer expectations, safety, and pricing issues.

1. Term Paper: A Critical Analysis of Pathao, Its
Service, Challenges and Marketing Strategy

2. Term Paper: A Critical Analysis of Pathao, Its Service, Challenges and
Marketing Strategy
Independent University, Bangladesh
Submitted To
Dr. Baktiar Rana
Adjunct Assistant Professor
Independent University, Bangladesh
Submitted By
Elima Jahan – 1610774
Dipak Kumar Paul – 1610643
Abdullah Al Masud- 1630994
Md. Nazmul Islam - 1610609
Noman Ahmed – 1721187
Last Date of Submission: April 07, 2018

3. Letter of Transmittal
April 07 , 2018
Dr. Baktiar Rana
Adjunct Assistant Professor
Independent University, Bangladesh.
Subject: Submission of group project on A Critical Analysis of Pathao, Its Service, Challenges
and Marketing Strategy
Dear Sir,
We have been asked to submit a report on Pathao. We are very grateful to you that you have
given such an educative assignment that has increased our knowledge and experience. Through
this project we get some real life experience that related to our course, it helps us to implement
our learned knowledge in real life situation. Moreover we found it more interesting because in
this project we dealt with strategy marketing and challenges faced by the company which enables
us to sharpen our knowledge on strategy marketing, not only that we also learn how to
implement learned knowledge in real life and we believe this will ensure our better future and
prospect.
We are happy that we are able to submit this term paper within given timeframe and we hope
that you would appreciate the way we have describe it as we have put our best effort in it.
Yours Sincerely,
Elima Jahan – 1610774
Dipak Kumar Paul – 1610643
Md. Nazmul Islam - 1610609
Abdullah Al Masud- 1630994
Noman Ahmed – 1721187

4. Acknowledgment
We would like to thank to our honorable teacher Dr. Baktiar RanaSir to give this fabulous
assignment which at the same time interesting and also educative. We thank him for his
cooperation and suggestion without which this report cannot be done properly.
Lastly we would like to thank to our entire team and their hard work, without their cooperation
and team work this report may not be able to complete within the given time period.

5. Table of Contents
Introduction..................................................................................................................................... 2
Services Offered by Pathao............................................................................................................. 2
Market Segmentation...................................................................................................................... 3
Major Challenges Faced by Pathao................................................................................................. 6
Marketing Strategy.......................................................................................................................... 8
Conclusion ...................................................................................................................................... 9

6. Introduction
Dhaka is the capital and economic hub of Bangladesh, one of the fastest growing economies of
the world. Since winning their liberation from Pakistan back in 1971, for the first time they
recorded a higher GDP per person than Pakistan in 2017. Converted into dollars at market
exchange rates, it was $1,538 in the past fiscal year (which ended on June 30th), whereas
Pakistan’s was about $1,470. This remarkable turnaround has a lot to do with the blooming
Bangladeshi economy, with an average 6% growth for the last decade, and above 7% in the
recent two years (Economist, 2017). While this tremendous growth brings up numerous business
opportunities, it also puts a lot of stress on the limited resources of the country. With the
economy shifting focus from agriculture to industrial sectors, more and more people flock to
Dhaka from other parts of the country in search for jobs. According to a study by the UN
population division, Dhaka was the 8th most populated city of the world, with a population of
18.2 million (Irani, 2017). It does not come as a surprise that Dhaka also has one of the most
congested traffic conditions as well, with an average traffic speed of only 7kmph—slightly above
the average walking speed (Quaium, 2017).
Pathao was founded by entrepreneurs Hussain M. Elius, Fahim Saleh and Adnan Shifat in
2015—with the goal of tackling one of the most pressing issues plaguing businesses and
commuters in Dhaka City, Transportation. There are two primary verticals of operations of the
company: providing delivery and cash collection support to businesses through their Pathao
Fulfillment service; and, transportation service, much like Uber but with motorbikes, through
Pathao Rides. Using the same base infrastructure, Pathao serves different markets and plans on
expanding operations to other delivery services, such as food delivery (Frieschlad, 2017). The
trio had worked separately in their own projects, but they had identified a key problem and found
a clever solution to one of the most critical problems faced by small businesses and commuters
in the city. They found a nifty way to tackle the problem without having to invest huge capital.
Its fleet of motorcycle drivers and bike messengers bring parcel to clients in Dhaka and beyond.
The service thrives on the back of a growing demand for reliable e-commerce deliveries in
Bangladesh. On the other hand, despite the lack of precedence of motorcycle taxis in the country,
Pathao’s Ride services caught on. In the beginning, it was a fleet of 100 drivers employed by the
startup, but now they have a network of 500 freelance drivers in addition to the employed staff,
serving an average three to four rides a day. Over time, Pathao hopes to expand operations to
other regions of the country.
Services Offered by Pathao
The Company offers information, method and platform for transportation providers, drivers and
vehicle operators to schedule, obtain and establish contact with Passengers or Customers, but
does not and does not intend to provide transportation services or act in any way as a taxi

7. operator, transportation carrier or provider, and has no responsibility or liability for any
transportation services provided to Passengers or Customers by you.
The Company reserves the right to modify, vary or change the terms and conditions of this
Agreement or its policies relating to the Service at any time as it deems fit. Such modifications,
variations or changes to the Terms and Conditions policies relating to the Service shall be
effective upon the posting of an updated version at Pathao. You agree that it shall be your
responsibility to review this Agreement regularly whereupon the continued use of the Service
after any such changes, whether or not reviewed by you, shall constitute your consent and
acceptance to such changes.
Pathao Fulfillment delivery service provides logistics support to its customers by connecting the
online stores with their customers. Domestic E-commerce businesses i.e., daraz.com.bd;
ajkerdeal.com etc. uses Pathao Fulfillment services to deliver the goods brought through their
sites directly to the customer in person. The services offered through this vertical of business
include: cash-on-delivery (COD); reverse logistics (which is a return to sender/origin support);
24-hour customer service. Consumers benefit through the added convenience of goods being
delivered to their home, and businesses benefit by not having to borne huge delivery costs and
offering customers a value-added service. The app uses a mobile-friendly interface which
enables users to access the services on any platform: web, computer, mobile, and a 24-hour
customer service means that customers can have their problems sorted at any hour of the day.
Furthermore, given that the company uses motorbikes and bicycles for most of their deliveries,
they have the added advantage of being more environmentally friendly than the competitors
which somewhat reduces their carbon footprint and boosts their brand image.
Value offerd by pathao to the customer
1. DELIVERIES
2. PARCELS
3. FOOD
4. RIDES
5. CARS
Market Segmentation
Market segmentation is the process of dividing a market of potential customers into groups, or
segments, based on different characteristics. The segments created are composed of consumers
who will respond similarly to marketing strategies and who share traits such as similar interests,
needs, or locations.
Segmentation of Pathao:

8. Segmentation of Pathao is given below.
Demographic Segmentation:
Demographic segmentation is market segmentation according to age, race, religion, gender,
family size, ethnicity, income, and education. Demographics can be segmented into several
markets to help an organization target its consumers more accurately.
It varies on the quantifiable population characteristics, Gender, Age, Family, Socio Economic
status.
 Gender:
Basically, male peoples are the main customer of pathao bike ride service but now
a day’s females are also using to get bike ride service. Recently pathao launch a car ride
service and food delivery system. Males and females both are get this ride & food
delivery system.
 Age
The average age of Pathao users are 18-40 years range. Bike riding service is so
famous to the young generation people.
 Socio Economic Status
Pathao service become popular to the Middleclass society.
Geographic Segmentation:
Geographic segmentation is when a business divides its market on the basis of geography.
Geographically segmentation means dividing a market by area, such as cities, counties, regions,
countries, and international regions. You can also break a market down into rural, suburban and
urban areas.
The target location of Pathao service is urban area in this country. Now Pathao is providing their
service in Dhaka and Chittagong, their target is to expand their service to other cities in our
country.
Psychographic Segmentation:
Psychographic segmentation involves dividing your market into segments based upon different
personality traits, values, attitudes, interests, and lifestyles of consumers. This segmentation is
advantageous because it allows you to engage in product design and marketing in a focused
manner.
Students and job holder peoples are the main target of Pathao service.
Behavioral Segmentation-
Behavioral Segmentation form of market segmentation that groups consumers based on specific
behavioral patterns they display when making purchasing decisions. By Monika Baranowska.
Behavioral segmentation is a marketing strategy based on actual consumer buying behavior.
In Dhaka city average customer take Pathao rides to go timely at their destination, they concern
about time. Pathao users are also price conscious that’s why they prefer bike rides rather than
CNG or car ride service.

9. Major Rivals of Pathao Service
Ride Service
Mobility is a big problem in Dhaka. It is hard to get from one place to another and public
transport system is showing little sign of improvement. Hence, we are seeing an influx in the
number of mobility and on-demand transportation services.
Pathao Rides is a transport service provided by the business which is more like motorcycle taxi,
similar to Uber and Go-Jek. It works through the official Pathao app available in both iOS and
Android platforms. As per my study, the top domestic competitors of Pathao are:
1. Uber.
2. SAM Riders.
3. Amar bike.
4. Amar Rid.
5. Chalo.
6. BD Cabs.
7. Oikhali.
8. Muv.
9. Toma.
10. Bahon.
11. Ezzyr.
12. Trippo.
13. Let’s Go.
14. Garivara.
15. Taxiwala.
16. Dako Ride.
Pathao faces competition from a growing number of ride hailing apps on an international scale.
As per my study, the top global competitors of Pathao are:
1. Uber.
2. Didi Chuxing
3. Ola.
4. Careem.
5. YandexTaxi.
6. Easy Taxi.
7. Taxify.
8. Lyft.
9. Gett.
Food Service

10. We are now few clicks away to get home delivery of readymade food at ease. In our country, this
business is growing rapidly in recent times, and it’s promising. Pathao Food provides food
delivery service on time. Let’s look at the domestic most popular online food delivery services in
Bangladesh:
1. Foodpanda.
2. HungryNaki.
3. Foodmart.
4. Food24X7bd.
5. Foodpeon.
Let’s look at the global most popular online food delivery services:
1. UberEats.
2. Postmates.
3. Delivery.com.
4. Yelp Eat 24.
5. Foodler.
6. goPuff.
7. Doordash.
8. Grubhub.
9. Seamless.
Delivery Service
E-courier services most popular in world. Here I have listed two types of courier service
company operating in Bangladesh. One is home grown bangladesh based domestic e-courier
services operating in Bangladesh.
1. eCourier.
2. DhakaCourier.
3. Aramex Bangladesh.
4. Sundarban Courier.
5. Air Pac Express.
International / Multinational E-courier Services
1. DHL.
2. FedEx.
3. GlobalE
4. United Parcel Service.
5. IFS Global.
Major Challenges Faced by Pathao
Business is full of challenges and every business have to face it and over the time through
strategy and market intelligence every business brings solution to its own challenges and

11. improve gradually. Pathao is not out of it, though it is the most popular brand in Bangladesh still
it is facing challenges that is making its business more and more competitive. The Challenges are
Over Demanding Consumers
Customer becoming impatience day by day which enforce huge pressure on Pathao in every
service they are providing. Offering faster service makes customer expect to have Pathao within
a minute and get more faster delivery whereas in reality which could not be fully possible due to
infrastructure and uncontrollable traffic congestion the country is facing.
Local Competitors
Pathao is experiencing an influx in the number of mobility and on-demand transportation
services in Dhaka. Dhaka has over 9 startups operating in the space including Toma, Chalo, Sam,
Oikhali, Pathao, uber, Amarbike, Amar Ride, Bahon and Muv
Global Competitors
It seems that the market is going to be even more competitive in the coming years. International
players like India’s Ola and Grab are now eyeing Bangladesh. As we reported earlier, Ola is
planning to launch operations in Dhaka by the fourth quarter of this year.
Safety Ride Issue
Ensuring safety and security for both the packages that are delivered and the passengers that are
ferried to various locations. Motorcycles are in general subject to numerous accidents in the city.
Pathao is continuously trying to minimize the accident but cannot be fully mitigated. One of its
customer said he was in an accident due to an untrained rider who drove his motorcycle at high
speed despite being unable to control it. Pathao is trying to eliminate this issue by riders rating
service but due to having not verified riders this could not be fully mitigated.
Gender Issue
One particular issue has been the almost non-existent female users of this service in Bangladesh.
Despite major strides made in female empowerment in the country, norms and religious issues
still somewhat restricts the female population of this part of the world from publicly sharing
motorcycles with male drivers who are not their legal guardians and spouses. While things have
started changing with the rising education coverage throughout the country, there have been very
few female passengers and almost zero drivers using Pathao rides service in Dhaka.
Pricing Issue
Consumer for pathao expect more reasonable price. On the other hand sometimes riders take
long route to increase their fare which create dissatisfaction towards customer. Often riders tend
to approach higher price even the user get promotion from Pathao. The competitiveness in the
business also making this pricing challenge more fierce. The table below shows the comparison
among the competitors of Pathao

12. As seen in Table, Pathao Rides fares are more competitive with their prices compared to the
other ride-sharing and taxi services. Even though Pathao Rides are for a single user, the cost
per person is still justified because of the convenience of faster travel and cheaper rate
compared to other offerings in the market place. This point was solidified with the fact the
Pathao was able to obtain repeat customers without expensive promotional offers. Uber
continuously provides discount offers to retain their customers, and has a lot of controversial
cases arising from their contracted drivers of their fleet. On the other hand, there have been
very few instances of public customer constraints from Pathao Rides drivers.
Marketing Strategy
Pathao is facing fierce competition from the market, due to low entry barrier competition is
increasing day by day which make business sustainability more and more challenging. To
overcome these challenges the followings are the strategy to ensure sustainability in the business.
This marketing strategy has been formulated in terms of marketing mix through which it is
expected to save Pathao in the long run ensure sustainability. The strategy are
Pathao Expe
As discuss before pathao is facing huge competition from the competitors perspective, on the
other hand Pathao has very good brand awareness among its user. Pathao expe wil be the social
media site that will encourage customer to share their great experience regarding Pathao ride.
This kind of activity will create social community among the users and will make users into a
loyal customer. It will also prevent new competitors taking away pathao’s customer as this kind
of social group will create a kinship among the users.
Pathao Energy
Emission of C2O can cause huge problem for the air and the society we are living, right now the
people in Bangladesh are not concern about environmental issues cause by fuel as there is no
protest against this but in future it can bring huge number of controversy which may decrease the
user rate of Pathao. To defend that future controversy Pathao can promote themselves as the
environmental friendly service, who are truly concern about the environment that is causing huge
disaster towards the society we are living. Pathao electric bike is the solution for the problem.
This service will be optional but will encourage to use this service as it is not harmful for the
environment we are living. Under this tag line Pathao energy it will promote energy efficiency
that will save Pathao to avoid such protest regarding environment.
Pathao Smoothie
Patho is very much popular towards young generation as a ride sharing, but middle age and old
people tend not to prefer Pathao motor bike as it seems not to be safe for them, on the other hand

13. this segment might be so economic that prevent them to take Pathao car, as a result it is losing a
significant number of customer that falls under this segment. On the other hand no other
competitors is offering such service that offers smooth service towards old or middle age people.
As a result pathao smoothie will offer smooth ride that don’t offer faster ride rather a safe ride ,
that will be serve through scotty which is much safer than the normal bike. This service prevent
aggressive local and global competitors as it is creating completely a new segments in the market
that other competitors is not offering.
Research and Development
Disruptive technology is a major concern for any kind of business. Pathao is proving delivery
service however in western country this kind of service is planned to done by drone. As this has
not become so popular due to its huge cost but more research are been done to prevent this cost.
On the other hand Bangladesh is not prepare for drone delivery service but in future it can be as
it is growing day by day. This technology advancement could threat Pathao in the long run. To
prevent this challenge this is high time Pathao should develop a research and development team
that will find the other cost effective but faster way of delivery through advance technology, this
team will also do research on possibilities on Drone delivery or robot delivery so that it could be
the first in the market to offer this service when country is ready to take it and thus prevent
disruptive technology to hamper its business. Not only that in the western country the flying cars
are also going thorough huge testing and research, Pathao could take part into this initiatives so
that when available it could offer this type of service to its consumers.
Conclusion
Pathao is a start-up that is constantly evolving and the team believes in embracing dynamism
which is etched into their business philosophy. The company is thinking to expand overall
Bangladesh to ensure that everyone reap the benefit they are providing. However aggressive
local and global competitor , over demanding customer, environmental issues etc. pushing is
business into a really hard challenges, but no business is out of challenges as proper marketing
strategy and continuous improvement of the service could save this business for the future and
ensure business sustainability. E-commerce is the future of the economy, and Pathao will play an
integral part in its technological advancement only if they follow consistent improvement
through research and development about the market opportunities and threat and keep offering
state of the art technology to its customer.

14. Reference
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http://www.brta.gov.bd/newsite/en/dhaka-metro-up-to-june-2016/
Dailystar. (2016). Bangladesh to see 72 pc growth in e-commerce sales. The Daily Star.
Dailystar. (2016). Top 5 Uber alternatives in Bangladesh. The Daily Star.
Economist. (2017). Bangaldesh’s GDP per person is now higher than Pakistan’s. The Economist.
Frieschlad, N. (2017). Meet the fast-growing Go-Jek of Bangladesh. Techniasia.
Future Startup ( 2017) Pathao Launches Pathao Cars. [Online] Available:
https://futurestartup.com/2017/11/01/pathao-launches-pathao-cars/
Hassan, N. A. (2016). Ready, set, done. Dhaka Tribune.
HEI. (2017). State of Global Air 2017. Retrieved from USA.
Irani, B. (2017). Population growth kept at bay despite flagging initiatives. Dhaka Tribune.
IRIN. (2009). Air pollution choking Dhaka. [Online] Available:
http://www.irinnews.org/report/83772/bangladesh-air-pollution-choking-dhaka
Islam, M. Z. (2015). Smartphone penetration to reach 20pc by this year. The Daily Star.
Retrieved from The Daily Star.
Mahbub, S. (2016). Beat Traffic with Pathao. Hifi Public.
Pathao. (2017). Pathao. [Online] Available: https://pathao.com/
Quaium, R. (2017). Wheels in motion. Dhaka Tribune.
SD ASIA (2016) Pathao Aims To Solve Two Major Problems in Bangladesh [Online] Available:
https://sdasia.co/2016/12/15/pathao-aims-to-solve-two-major-problems-in-bangladesh/
Ullah, G.W. and Islam, A., 2017. A Case Study on Pathao: Technology Based Solution to
Dhaka’s Traffic Congestion Problem. Case Studies in Business and Management, 4(2), p.100.