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Table of Content
1. Executive Summary 2
2. Analysis 3
a. Environmental analysis 5
b. Industrial analysis 25
c. Industrial life cycle analysis 29
d. EFE matrix 30
e. IFE matrix 36
f. VRIO analysis 40
g. Competitor analysis 41
h. Competitive profile matrix 43
i. Value proposition analysis 46
3. Survey 53
4. Recommendations 58
a. I-E matrix 59
b. Possible recommendations 60
c. Main recommendations and execution strategy 62
5. Conclusion 64
6. Appendices 65
7. References/bibliography 82
2
Executive Summary (17-90262-2)
This report prepared based on “Environment, Industry and Company Analysis”. Demographic
trends, Socio-cultural influences, Technological Factor, Macroeconomic Impact, Political legal
pressures factors, and Global Trade Factors problem UBER faces right now and will be solved in
near future. As they expand their business outside the Dhaka city, their income level will increase.
Ride-sharing apps like UBER have proven to be cheaper, user-friendly, and above all, convenient,
unlike CNGs and taxis. People in Bangladesh accepted the new idea of ride sharing service; as a
result, popularity of ride-sharing apps is rapidly increased among city people for last couple of
years. By the analysis of IE matrix, UBER is in hold and maintain strategy, that means it can be
managed best with hold. Uber will have to follow market penetration and product development
strategies. they should now product development in the market for the customer. Ride sharing
industry is in growth stage, so rivalry and threats of new entrants is still high. Customers also have
strong position regarding choosing service as they have lots of substitution in the market. Upgraded
to 4G as well as increasing of Smartphone and internet subscribers allow ride sharing company to
expand their business in Bangladesh. In Bangladesh is a political instability is the main threat for
company like Uber. We found that Uber have strong software and app in Bangladesh compares to
others ride sharing companies like Pathao, Shohoz, apps and this software are not very user
friendly, when many people use those rides sharing services then the software not working
properly. But the software and app of uber have no problem and customer are highly satisfied with
Uber by using their ride sharing app. They do not face this type of problems. Strong software and
app is rare right now in Bangladesh because other ride share app is not very user friendly like uber.
So, result is Temporary competitive advantage. Uber should also take care about their base fare as
their base fare is comparatively high from Pathao. Uber should reduce their price as they have high
price comparing to Pathao and shohoz. For this they can either split their service in to premium
service and general service, where customer can choose pricing option according to service type,
which is also known as service development. On the other hand, they can reduce their base fare
and increase Per kilometer fare which may allow them to maintain their competitor’s level of
pricing strategy.
3
1. Analysis
4
In this report is based on UBER Bangladesh. It is a ride sharing app service Business. This report at first,
we do survey because we want to know the market position of ride sharing app service business in
Bangladesh. Based on survey and secondary data we make this report. In this report the first analysis is
external Environmental analysis. In environmental analysis we see that the impact of different factors based
on industry and company basis. Then we do industrial analysis (porter’s forces). Therefore, IFE and EFE
matrix helps us to identify the company strength, weakness, opportunity, and last one is threats that helps
us to give recommendation. CPM tells us our competitor position. We do value proposition analysis. We
also do competitor analysis. Then we do IE matrix. In this analysis we found that uber is under hold and
maintain strategy. At the end we give five possible recommendation and two main recommendation that is
fully based on overall analysis. We give five possible recommendation is –Highly depend on manpower,
more customer bargaining power, Controversial surge- pricing model, less service offering, highly depend
on internet. And two main recommendation is product development and market development.
5
A. Environmental Analysis
I. Demographic trends:(17-90255-2)
The factors are Employment rate, traffic condition, increase of internet uses, pressure on public transport,
Over population of Dhaka city.
o Demographic trends 1. Employment rate
• Effect on the Industry: Bangladesh is small country surrounded by mostly India and in one side
Myanmar. In Bangladesh economic problem is the main issues for country development
However, unemployment rate is remarkably low in Bangladesh, only 4.5% in 2010 (Labor
Force Survey 2010, BBS). Unemployment rate for 2010 becomes as high as 24.0 percent if
underemployment is added to unemployment rate. It is opportunity for riding app industry to
getting work force.1
Not only ride sharing has solved the mass problem of finding vehicles, but
also the sector created employment opportunities for more than 40,000 people.2
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.3
• Effect on your company directly: Uber with 100,000 driver partners and approximately 2,500
new partner sign-ups per week, Bangladesh is expected to contribute 25% of Uber’s growth in
the region in 2019, said a press release.4
Ride-share merely takes up a significant share of the
larger transport sector. It is so far just a competitor (occupying an estimated 23% of the market)
in the private passenger motor vehicle-hailing services subsector - that is, alongside motor
1
https://bit.ly/2zXvOys
2
https://bit.ly/2Gk9WTp
3https://bit.ly/2yTFOav
4.https://bit.ly/2S5n4NR
6
services like CNG and rental cars that can be privately hired to get around town. In short, ride-
share is in its early stages. The sector has barely made a dent in the larger transport sector.5
It
is a big opportunity for Uber. As the unemployment is exist in Bangladesh it would not be
difficult for uber to getting enough workforce. Prevailing unemployment also help uber to
workforce at low salaries or commission whatever.
• How might the factor change over the next 5-10 years: It will create new employment
opportunity and after 5-10 years later more people came to know about ride sharing app. It
will spread out side Dhaka city.
o Demographic trends 2. Traffic condition
• Effect on the Industry: 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. 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. This condition actually creates
opportunity for ride sharing Apps.6
As we see to our day to li life most people use public
transportation like local bus. Those buses stop frequently to take passenger and leave passenger
that actually consume more and more time. In that sense traffic condition is somewhat in favor
of ride share app.
• Effect on your company directly: People getting difficulty finding vehicles during pick hours
for extreme traffic jam. The question can arise here there is a traffic jam on road but people
face difficulty to getting transport, what is the reason for that the answer when one person
standing on Framget to pick up bus for going airport but he did not get his desired bus but road
is jam packed and his desired bus stack on signal at SHABAGE MORE, that is actually
5
https://bit.ly/2yz0XYa
6
https://bit.ly/2yTFOav
7
• happen in real life situation. So, it is an opportunity for uber to grow business. Make available
to passenger.
• How might the factor change over the next 5-10 years: As the time passes traffic jam in
increase by 15 minutes per signal in Dhaka city.
• Demographic trends 3. Increase of internet uses
• Effect on the Industry: Ride sharing app is uses through internet. The number of internet users
in Bangladesh has crossed the 90 million mark, and most of them access the web on mobile
devices, according to the latest figures published by the telecom regulator. Mobile internet user
has reached reached 83.141 million at the end of February, 2018.7
That is very optimistic
information for industry as a whole. 8
• Effect on your company directly: It is good news for ride sharing app like Uber because through
internet car booking is made.
• How might the factor change over the next 5-10 years: Hopefully after 5-10 years later 1 GB
of internet pack will cost 10-12 tk.
o Demographic trends 4. pressure on public transport
• Effect on the Industry: Though the country has made good economic progress over the years,
urban experts think the capital city still lacks quality bus fleets to match the people's improved
lifestyle. They said almost all the existing 8,000 public buses in the city are completely unfit
for running in a capital city like Dhaka and those should be replaced with high quality and
standard and comfortable ones working out a comprehensive phase-out plan like the one that
replaced thousands of two-stroke auto-rickshaws with CNG-run ones in 2003.Noted urban
expert and former chairman of the University Grants Commission (UGC) Prof Nazrul Islam,
Buet's Accident Research Institute (ARI) director Prof Moazzem Hossain, Buet's Urban and
7
https://bit.ly/2BmBDp5
8
https://bit.ly/2PDQOiL
8
Regional Planning department Prof Dr Sarwar Jahan and urban expert and architect Iqbal
Habib came up with the observations while talking to UNB. Prof Nazrul Islam said the buses
in the capital must have acceptable standards. "The existing bus services in Dhaka are far
below the minimum standard. We must ensure quality and comfortable and passenger-
friendly bus services to reduce people's dependence on private vehicles.9
The extreme pressure
on public transport actually opportunity for ride sharing app services. Because they will get
passenger easily
• Effect on your company directly: uber can utilize this opportunity and can make powerful
business strategy to grow their business in Dhaka city.
• How might the factor change over the next 5-10 years: After 5-10 years people will be more
comfortable with uber and other ride shar app because people more use to with app sharing
services. Uber will have to compete with new comer app sharing services as well.
o Demographic trends 5. High population density in Dhaka city
• Effect on the Industry: Dhaka's 14.6 million people live in just 125 square miles (325 square
kilometers). At more than 115,000 people per square mile (Figure 1), or 45,000 per square
kilometer (Figure 2), the capital of Bangladesh is nearly 75 percent more densely than Hong
Kong.10
As right now most people live in urban area it is a opportunity for whole industry.
Because ride sharing apps doing their operation in Dhaka only.11
• Effect on your company directly: The high population density in Dhaka city is good
opportunity for uber. By utilizing this condition Uber can easily generate revenue.
• How might the factor change over the next 5-10 years: After 5 -10 years latter Dhaka”
population will be 5 crores.
9
https://bit.ly/2S5Iyda
10
https://bit.ly/2Epwyzb
9
II. Socio-cultural influences: (17-90124-2)
The social-cultural factor is also important as the other factor. For Uber socio-cultural factor is
more important because its deals with different social factor that influence consumer choices,
values, beliefs, and social attitude. In this social factor we collect five factors which is Standard of
living, Emphasis on safety and security, Employment Opportunity, Attitude towards customer
service quality, Changing Preferences.
o SCI Factor 1: Standard of living (17-90124-2)
• Effect on the industry: For this ride sharing industry standard of living is very important. The
more standard of living will increase the more people will use internet. Now a day’s people
of Bangladesh are using heavy internets. Google said the number of active internet users in
Bangladesh stands at 4 cores with 35 percent using it every day12. And ride sharing industry
is also mobile internet based. So, this industry is growing constantly in Bangladesh. App users
in BD have a ranking and within this ranking Pathao 21, shohoz 28, Uber 38.13
Many ride
sharing companies are coming and serving people through their ride share service. Different
company tries to attract their customer in different way. They share their price and discount
through sms and customer can know about that. Customer can choose their favorite ride
according to their brand loyalty, price and choice.
• Effect on your company directly: It’s a big opportunity for uber. As standard of living
increases in Bangladesh, so people are more conscious about their time. They want to save
their valuable time at any cost. uber service solve this problem. To book an Uber ride, all you
need to do is order through a mobile app. In few minutes you will get the confirmation of your
ride.
People can easily access from one place to another place by this ride sharing service. You can
explore all vehicle options available in your area before confirming your ride. Uber offers
several choices to get you to your destination safely and comfortably14
. So, they can easily
fulfill customer requirement according to their demand.
12
https://bit.ly/2POJmC8
13
https://bit.ly/2CZJU5v
14
https://ubr.to/2Jcy4VT
10
• How might the factor change over the next 5-10 years: After 5-10 year people will discourage
to buy a privet car because they can easily get any ride sharing app at any time. They don’t
need to spend money on driver salary and garage.
o SCI factor 2: Emphasis on safety and security (17-90124-2)
• Effect on the Industry: In ride sharing industry safety and security is very important. For
every ride share customer are concerns about safety issue. That’s why for every ride sharing
company customer has to create an account. For which they have to provide all of their
personal information like mobile number, nid number or driving license, vehicle tax token,
certificate of fitness, insurance along with required document of the vehicles. Now for
customer safety wearing helmet is necessary when riding motorbike. All of the companies
have to ensure this.
• Effect on your company directly: Uber are very much conscious about their customer safety.
Uber ensure the entire necessary step what can ensure about customer safety and security.
Now a day’s Uber is providing helmet for their customer. After service uber also take
passenger feedback about ride and driver. All of this only for ensures customer safety.
• How might the factor change over the next 5-10 years: Now only ride sharing company
knows about drivers and passenger information. But after 5-10 years police can also get all
of the information about drivers and passengers. This will ensure more safety for passengers.
o SCI factor 3: Employment Opportunity (17-90124-2)
• Effect on the Industry: Ride sharing service opened opportunities to unemployed people. And
it also offered options to employees who wish to have extra income. Ride sharing service
gives chance to those people who cannot have secure job but has a working knowledge of
driving a vehicle. An estimated 40,000 drivers/riders under the ride-sharing network implies
the job creation potential of this sector15
. In our country there have many ride sharing service.
Many people working on there and make their own employment. Ride sharing businesses
also create a big opportunity for local automobile industry. Motorbike sales soared nearly
50% year-on-year to 3.60 lakh units in 2017 thanks to a huge cut in supplementary duty on
15
https://bit.ly/2yTFOav
11
import of the two-wheeler's components. In 2015, only 1.43 lakh units of motorcycles were
sold. The soaring sale of motorcycle provides impetus for young people to own a bike and
have an additional income by getting incorporate in ride-sharing network16
.
• Effect on your company directly: Uber 1st
comes in our country with this service and make
this opportunity for the unemployed people. Now people can buy their own car and earn
money by uber. Uber offers different bonus for their rider. A research shows that until
November 2017 10000 active uber cars were operating in Dhaka and 2 lakh people took trip
in November’1717
.
• How might the factor change over the next 5-10 years:After 5-10 year there will be no rent-
a-car business. People will buy their own car and make their own employment.
o SCI Factor 4: Attitude towards customer service quality (17-90124-2)
• Effect on the Industry: In Bangladesh the entire ride sharing Service Company tries to gives
better quality and service. Company knows that better quality and service can satisfy
customer. Customer does not need to bargain with service provider. Customer gets all of the
information about ride fare from the app which customer can compare with one another.
• Effect on your company directly: Uber has best customer care facility in Bangladesh. They
try to solve customer problem as soon as possible. They always trained their rider for
providing better service to their customer. Uber arranged different seminar and training
program for their rider. And for better service and quality they try to get their customer
feedback through their app by rate drivers and the ride itself. In this way uber Bangladesh
continuously improve them self.
• How might the factor change over the next 5-10 years: After 5 to 10 years I think they can
provide offline service. Because most of the people in our country still don’t use internet.
Then they can capture that market segment.
16
https://bit.ly/2yTFOav
17
https://bit.ly/2yTFOav
12
o SCI Factor 5: Changing Preferences (17-90124-2)
• Effect on the Industry: A major socio-cultural factor is changing consumer preferences. What
was popular and fashionable 20 years ago may not be popular today or 10 years down the
road. In before people have to rent a car or hire cng for their travel. But now this trend has
been changed. Ride sharing service takes this opportunity and change customer preference.
People are increasingly choosing services like Uber, Pathao and Obhai over CNGs and taxis.
Although the car-renting services believe their business system is yet untouched from the
trend’s disruptive nature, the CNG workers union upheld strikes during the months of
November &December 2016. Uber, Pathao, Obhai altogether log in 10,000 rides a
day18
.They already set a transportation platform in consumer mind.
• Effect on your company directly: Uber first comes in Bangladesh with ride sharing idea. It
changes customer preference in a very short time. Uber changes traditional transportation
idea from consumer mind and set a new concept about ride sharing idea. It links car rider
with passenger. It has been a week that Uber launched its services and user feedback has
been overwhelmingly positive. With fares roughly 20 – 25 percent higher than CNG auto-
rickshaws and fast response times coupled with comfortable vehicles and well-mannered
drivers, it is set to revolutionize the way people travel in this city19
.
• How might the factor change over the next 5-10 years: After 5 to 10 years ride sharing service
model will be applied in other business sector.
III. Technological Factor: (17-90183-2)
Technological factor of is very much important as well as other factors & for uber this factor is
most important because Uber is mostly depend upon technology. In technological factor we collect
18
https://bit.ly/2CuGBlK
19
https://bit.ly/2EDrBEW
13
five factors which is internet connectiveness, spread through social media, dynamic pricing,
location sharing & driving directions
o Technological Factor 1: Internet Connectiveness (17-90183-2)
• Effect on the Industry: The ride sharing app industry dependent on internet connectiveness.
According to statistics published on the Bangladesh Telecommunication Regulatory
Commission (BTRC)'s website , the number of the country's total internet users is now 90.05
million, of the total users, 80.47 million are mobile phone internet users, 570,000 are
broadband internet (ISP + PSTN) users, and the rest 83,000 are WiMaxusers.The total
number of internet subscribers reached 80.89 million at the end of July.20
Without internet
connection ride sharing industry do not able to run their business.
• Effect on company directly: Due to good internet connection & increasing internet user
people attract more on Uber. And so Uber gives better & fast service than another ride sharing
app.
• How might the factor change over the next 5-10 years: In future UBER app become more
easy, flexible and also give better service to their customer with the help of increasing
internet user & fast internet.
o Technological Factor 2: Mobile Marketing (17-90183-2)
• Effect on the Industry: Ride sharing app industry mostly do their marketing & promotion
through mobile. They send text messages & sometimes call their customer for as a marketing
strategy. They also spread their service through social media like:facebook, twitter ,
instagram .Statistics of Bangladesh’s digital and social marketing growth in 2018 shows that
there are over 30 million active social media users in Bangladesh ,the mobile connections
are at 83% (137.2 million) , 28 million active users on social media, access it through their
phone , the total number of active mobile internet users as of now is 76.22 Million , there has
been over 27% increase in internet users since January 2017&an increase of 15% active
20
https://www.dhakatribune.com/technology/2018/09/21/btrc-90-05-million-internet-users-in-bangladesh
14
social media users since January 2017.21
So social media that helps the industry to spread
their business like wildfire.
• Effect on company directly: Mostly people share their riding experience, review, stories
through social media like Facebook groups or pages, twitter, Instagrametc.that attracts other
people using Uber.
• How might the factor change over the next 5-10 years: In future social media might help to
share more stories & incidents that encourage new users to do same.
o Technological Factor 3: Dynamic Pricing (17-90183-2)
• Effect on the Industry: Dynamic pricing means charges on the basis of the demand aroused,
weather conditions for the service to be carried out, traffic conditions of the service, and the
number of stops to be made during the complete journey.22
Ride sharing app industry is now
more popular because of its dynamic pricing that automatically counted based on various
subject that change over time.
• Effect on company directly: Uber fares are always dynamically priced than other ride sharing
app & local vehicles. Its fare is counted based on time , distance etc. For this reason, Uber
has created more value to the customer & give a positive sign than other competitors.
• How might the factor change over the next 5-10 years: In future ride sharing industry offer
more dynamic price so that customer use more than local transportation.
o Technological Factor 4: Location Sharing (17-90183-2)
• Effect on the Industry: Ride sharing app is mainly location-based app. People are feeling
more secure using ride sharing app.
• Effect on company directly: Location tracking process of Uber app is more secure than other
competitors. Customer can also share their location with their secured contact. Because of
this reason Uber is more popular than other ride sharing app.
• How might the factor change over the next 5-10 years: In future Uber app become more
secure & might give live location tracking to its riders &customers.
21
https://www.soravjain.com/digital-marketing-and-social-media-marketing-stats-and-facts-of-bangladesh
22
https://medium.com/troo-blog/comprehensive-swot-analysis-of-uber-as-powerful-business-15e3cbee95a4
15
o Technological Factor 5: Driving Directions (17-90183-2)
• Effect on the Industry: The ride sharing app industry provide driving directions which is also
known as GPS to its drivers. This feature helps the drivers to reach towards their customer
destination easily.
• Effect on company directly: By providing driving directions Uber able to give their 23
drivers
to pick up customers & also reach their destination easily.
• How might the factor change over the next 5-10 years: In future this app makes directions
more accurate by using Maps app & also other mapping software available on users’ device.
IV. Macroeconomic Impact: (17-90262-2)
Economic factors include exchange rates, changes in interest rate, economic growth, inflation rate,
market trends, tax law, consumer confidence. These factors enormously influence how
organizations work and decide. For example, interest rates influence a firm's cost of capital and
thusly to what degree a business develops and grows.
o Factor 1: Exchange Rate (17-90262-2)
• Industry Impact: In Bangladesh exchange rate is not stable. It always fluctuates. And in
Bangladesh we do not make cars, we import all of them. So, government can put tax on
those easily. Normally, the import VAT is 15%, 25% import duty on 1.5L engine and ,100%
import duty fee up to 2L, then 200% and beyond depending on size of engine. Additional
taxes apply: Supplementary Duty (SD) (100% CIFD), Regulatory Duty (RD) (4% (CIFD +
Supplementary Duty (SD))), AIT (Advance Income Tax) (5% CIFD).24
When the exchange
rate decreases then the price of the car decreases and vies versa. So, it has remarkable impact
on the industry and purchasing behavior of people. People feels to purchase car for Uber
service when the price is lower.
• Company Impact: Due to exchange rate if the price falls Uber transport authority should
take initiative of purchasing cars or encourage people to buy and get registered with Uber.
24
https://bit.ly/2QdaJtK
16
• Future Trend: From the near past we can analyze that the exchange rate is always changing
and currently it is downward for Bangladesh. So, after 5 year from now people will prefer
online app service more than buying personal transports when needed.
o Factor 2: Economy growth (17-90262-2)
• Industry Impact: GDP growth in fiscal 2017-18 is likely to be 7.65 percent, up from 7.28
percent a year earlier, as per the estimate of the Bangladesh Bureau of Statistics.25
So, it’s
means that our economy is improving day by day so that the improvement of our life style
will also have a massive change. We can spend a little more to have a fast and smooth
mobility which UBER is currently providing us. More user can affect a good number of rides
so that both user and company will get benefited. People are more eager to buy car and join
in uber which increase the number of driver end and also people are getting available ride
which increase the customer end which creating a good impact.
• Company Impact: When total economy is good people are willing to spend more for the
services like UBER. Good economic growth is a good sign for this kind of company because
the investment will be high and the customers are willing to pay for this ride sharing service.
• Future Trend: In Bangladesh the economic growth is increasing day by day so, for this kind
of service will be blessing for people. Thinking about the quality and comfort people are
willing to pay a bit more or less for transportation. Not only in capital area now a days UBER
service is moving on outside of Dhaka and its only possible by the increasing level of
demand. So, we can say that after 5-10-year UBER will be the first priority when people
think about to move outside of their place.
o Factor 3: Changes in interest rate (17-90262-2)
• Industry Impact: The benchmark interest rate in Bangladesh was last recorded at 6 percent.
Interest Rate in Bangladesh averaged 7.09 percent from 2008 until 2018, reaching an all-
time high of 8.75 percent in September of 2008 and a record low of 4.50 percent in October
25
https://bit.ly/2SqKyfR
17
of 2009.26
It’s means that interest rates are always fluctuate. Customers feel their effect in
the case of making a purchase on credit or buying a car. On the off chance that the interest
rate is low individuals purchase new car for online transportation business. Then, online
transport service will be better.
• Company Impact: On the off chance that interest rate is low Uber will take loan form bank
for investing in business. And they will purchase another car for the organization.
• Future Trend: I figure government will decreases the interest rate for online base transports service
business and new company will motivate from the government to do the business. Our nation vision
is, we will completely digital with in 2021. That is the reason we think interest rate will change. So,
after 5-10 year we think uber will do well in this market.
o Factor 4: inflation rate (17-90262-2)
• Industry Impact: In economics, inflation is a maintained increment in the general price level of
products and ventures in an economy over some undefined time frame. At the point when an inflation
rate is high then also aggregate transportation service cost will be high.
• Company Impact: If the inflation rate going high. At that point, Uber will also increase their service
price. And that is not good for the company.
• Future Trend: On the off chance that the inflation rate going high day by day then online transports
service cost will also high. But we think the inflation rate will low after 5-10 year, and all the newer
organization will start the business like Uber.
o Factor 5: consumer confidence (17-90262-2)
• Industry Impact: Consumers are will to spend in the online services since this service is quicker than
the other transport services and cost saving also. For their services their customers will increase day
by day.
• Company Impact: UBER is come up with a world class technology based ride sharing app which is
developed in Silicon Valley. The errorless app is working so smoothly and user friendly that anyone
can use it very easily. Also, uber add some value like safety, security and comfort which attract more
customers. So, if a customer will get this kind of service at one click of an app then day by day the
number of customers will increase and the company will get more profited by acquiring more
customers.
26
https://bit.ly/2BQBhIR
18
• Future Trend: For Student, Service holder, businessman and other professional people the most
important is mobility. Currently the most problemist thing is transportation and UBER is playing the
vital role in the scenario. Day by day we are move forward to technology so people are more
likely to use UBER for their mobility. The ratio of UBER user is growing day by day because
of people can move anywhere very fast, Smoothly and with a low cost. So, we can say that
after 5-10 years more people are engaging with this kind of ride sharing service and it will
bring a revolutionary change in our life. And that’s how uber can benefited in future.
V. Political – legal pressures factors :(17-90123-2)
Uber has ignited changed political debates globally. Several governments are concerned over the
regulation of the sharing economy27
. Uber rise has had a disruptive effect on the business of the
other traditional taxi services. Uber has been banned in a number of countries and such as Bulgaria,
Hong Kong and Germany and certain cities such as London and Brno.
In Bangladesh, soon after the launch, the Bangladesh road transport Authority said the ride sharing
service of uber was in violation of the country’s motor vehicle regulations. In the notice the BRTA
said taxi services in Bangladesh are regulated under the taxicab service “Guideline 2010” and
prospective companies must seek approval from the BRTA, vehicles that are rented on run on fare
are registered in a series different from other vehicles. Basically, uber is not a taxi company: rather
it is a tech company. To incorporate uber’s business model some countries have already adopted
guidelines for ride sharing services, with many countries in the pipeline to do so.
o PLP Factor 1: Government stability: Government can create a good impact on ride sharing
service business. If there is no strike, no hampering on vehicles, as a result ride sharing services
industry grow up day by day.
• Effect on the industry: when Government stability present in a country. As a result, this
business is run smoothly. Companies can offer and serve services more freely and customers
take the services more frequently.
27
https://bit.ly/2q2dizm
19
• Effect on the company: If government create smooth situation, uber has been able to create
good brand image in Bangladesh, as a result more customer has attracted to take these
services.
• How might the factor change over the next 5-10 years: Government stability helped this
industry. I think, when government maintain stability situation in country ride sharing
industry will made a big role in economy and public transportation and create new services
for the customer.
o PLP Factor 2: Safety Rules and regulations: If Government ensures both employee and
customer safety, security, and create good environment including cars condition. As a result,
people are more attractive in this industry.
• Effect on the Industry: proper safety rules and regulation create willingness to customer
join in the ride sharing services. This is secured workplace and service business because of
ensuring the highest safety.
• Effect on the company: If safety rules and regulation perfect in this business, as a result
employee of uber treated well to the customer and become more productive and dedicated.
Customer also feel safe to using ride sharing services business. They trust this company.
• How might the factor change over the next 5-10 years: In future more safety will be include
like cc camera in the car, as a result no occurrence can create in service time. And also
include new technologies for more safety to ride sharing service business.
o PLP factor 3: Educational law and regulations:
• Effect on the Industry: hen drivers have minimum qualification and for the reason this
industry is becoming more standard. Ride sharing app industry is very much popular
because of the literacy scale of drivers. They are at least capable of operating internet.
20
• Effect on the company: When all drivers and staffs are educated, as a result the company
always giving best services to the customer and also customer more attractive to this
company and using more.
• How might the factor change over the next 5- 10 years: In future i think many car owners
will give their car at least HSC, and graduates person. Higher educated person will be
encouraged to do job in the administrative level of this ride sharing service business.
o PLP Factor 4: Fare policy and wages rules:
• Effect on the Industry: If fare policy easier for the customer &Drivers and all staffs get
minimum wages, as a result this industry grows up day by day in Bangladesh.
• Effect on the company: when fare is reasonable, customer always take ride sharing services,
on the other side if company staffs get minimum wages including drivers. As a result more
educated people interested to join this company.
• How might the factor change over the next 5- 10 years: In Future uber Bangladesh take
different fare payment policy, like-mobile banking payment system and also create strong
rules for the drivers & all staffs to get maximum wages.
o PLP Factor 5: Government Tax and Insurance law & corruption level: Government
should maintain minimum tax rate, not higher tax. And maintain drivers & customer insurance
also maintain corruption in that business.
• Effect on the Industry: when government tax rate minimum then rides sharing service
industry grow up rapidly.
• Effect on the business: when corruption level low, business will be doing well day by day.
• How might the factor change over the next 5-10 years: In future uber Bangladesh has been
start customer insurance, as a result people are more attractive to using this ride sharing
service business.
Global Trade Factors :(17-90142-2)
21
Uber globally successful ride sharing app right now. Uber may have the most dynamic to benefit
riders and drivers across the 60 countries and 400 cities worldwide and growing month by month.
Uber is successful in USA and Europe. Uber didn’t better feedback from china.Uber is focused on
building its business, which is what has made the brand so globally that it has become, like Google,
a verb as well as a noun. Discusses the given below five factors of global trade perspective of uber.
o 1. Expansion and employment Factor: Trice the app is only useful to those who have smart
phones. Right now technology so much update. Young generation use in smart phone also use
in uber app. This way to uber expansion and employment also earn the money used the uber
ride sharing app in world wide.
• Effect on the industry: Right now, uber doing the business world over the world Uber
industry ride sharing app use the worldwide. Day by day industry is so much expanded by
uber. Few countries established the uber station its help for the uber industry customer.
People are more interest to use the uber ride sharing app because of this kind of industry
opportunity provide to the customer. So, industry so much strong than others. Uber
expanded the business and build our industry.
• Effect of the company: Uber is ride sharing app business Company. Uber is a marketplace
that matches riders with drivers, the company is constantly adding to the 1.1 million active
drivers on its platform to keep up with demand. While driver complaints about the
downsides of the freelance model, including the lack of benefits, has led to the launch of
new startups focused on making drivers happy, Uber advertises the flexibility the platform
gives drivers to be their own bosses. Recent uber work in Africa including Dar es Salaam,
Tanzania; Accra, Ghana; and Kampala, Uganda. Uber's ambition is to be everywhere.
• Future trend: Uber use in smart ride sharing app. it’s better than others ride sharing
apps.Given the better feature. While the global taxi industry is male dominated, the
technology behind Uber minimizes some of the safety concerns that can be a barrier to
entry for women. Before accepting a ride, Uber riders have a digital trail including trips
tracked by GPS. Uber is drilling into its data to understand the differences between male
and female driver behavior,i
22
o 2. Global Market Factor: Uber dominate the global market. Day by day uber expanded the
business all around the world. Uber is better position in usa market and Europe market. During
few years uber dominate in sub continent country.
• Effect the industry: Uber doing the better position in usa. Uber and lyft the most popular
two ride sharing app in usa. Uber is maximum market dominate in usa rest of the markrt
are lyft and etc. Same thing are Europe and india also Bangladesh uber doing the business
very well. Overall uber globally capture the market. New technology come to the market
those one is uber ride sharing app it helps to our industry and our daily life. Taxi cap and
bike share app uber start for our industry. It is blessing for our new generation.
• Effect the company: uber always try to start something new. Add some features to public
transport systems will require more action from governments and entrepreneurs to
innovate; measure societal impacts; and tackle policy, market, and cultural barriers.
• Future trend: Uber will be start female bike ride share app. It is innovating thinking for our
global market. ii
o 3. Resources Factor: Network and technology both are important for this business. Because
both is relevant with uber business. This question of global vs. local market in ride-hailing is
also a significant factor in considering how established brand and reputation could be a source
of competitive advantage for Uber.
• Effect of the industry: This industry depends on technology. So, technology is the main
resources for the business. When we get the profit from the industry, we have to need
update our global network and technology.
• Effect the company: when doing the business international trade company will be
expanded. The main resource is network and technology when both are updated also
company will be improving.
• Future trend: Creating some smart app for the future. And developing the current
resource. It developed its technology and splashed cash to establish a foothold in new
markets. In the future, its growth strategy could be more nuanced.iii
23
o 4. Location Factor: The transportation is convenient good for development of international
trade. Uber come into the market transportation service for customer. People easy to move
one way to others by uber transport service.
• Effect the industry: The most important factor is the city.Uber is the darling of the
sharing economy. The term Uberfication is applied to any industry or product that acts
as a liaison between users and the trend is growing.
• Effect the company: Uber's quick success proves that it was a much needed service in
the U.S. transportation market. By using the Uber app, customers can quickly get a
taxi to their exact location and conveniently pay for the ride.
• Future trend: Uber was a much needed shake to the taxi industry. In a world where
taxis can be messy, late and expensive, and where no incentives exist for drivers to
take efficient routes, Uber showed consumers what taxi service could be like.iv
o 5. Sustainable Factor: Uber try to sustainable in the global market. This is competitor market
so many ride sharing app run the business all over the world. Every company tries to give the
better feature for the customer.
• Effect the industry: Every business has an up and down. Uber is same thing here.
Sometime uber industry is good some time bad. As like that USA and Europe uber
industry is so good on the other hand china market is not so good.
• Effect the company: Every company try to business in long run in the market. How to
sustain in the market this is question. They have to need proper branding, good image,
provide the quality product. Otherwise any time drop out from the market.
• Future Trend: sustainable and future trend both is relevant. Company thinking about
that how to sustainable in future. We should be proper guideline to change the
technology. I think follow this step company will be improving. As a Bangladeshi
perspective uber car app is better than others ride sharing app.
24
B. Industrial Analysis (Porter’s Forces)
(17-90262-2)
We choose UBER from “Ride Sharing Industry” which is actually providing apps based online transport
service. It means that our service provides through internet without internet passenger cannot get our
service. Our immediate or main competitors are pathao, shohoz, toma, amarbike, taxiwala, cholo, obhai,
pickme. But public transportation like bus, rickshaw, CNG, leguna etc is excluded from this Industry.
Because those public transport services are not providing online transportation or anywhere pick up service.
The CNG auto-rickshaws and taxis have enjoyed a monopoly for years. As we see, People in Bangladesh
accepted the new idea of ride sharing service. The rapid popularity of ride-sharing apps proved it and has
effectively thrown the outdated industry off-balance. A person wants a comfortable & quick journey are
always looking for ride sharing apps like Uber, but public transport in Bangladesh rarely meet their demand.
25
In the following sections, we will be talking about our findings of each of the forces under Porter’s Industry
Analysis in details, providing justifications for our selected level of impact (Strong/Moderate/Week) for
each of the forces.
Please see Table 1B1 for our summarization of the industry analysis. In the following sections, we will be
talking about our findings of each of the forces under Porter’s Industry Analysis in details, providing
justifications for our selected level of impact (Strong/Moderate/Week) for each of the forces.
I. Rivalry among competing firms:(17-90262-2)
Based on our analysis rivalry among competing firms is strong.
Number of competitors in the market: Number of competitorsin this app base industry has many competitors
like pathao, obhai, shozah, toma, amarbike, taxiwala, cholo, goti-lets go, pickme, ezzyr. They are alsoin
this app industry with similar services. So, number of competitors is high.
Price competition: In this industry price competition is high cause we found through our survey that almost
90%customers strongly agree/agree if they offered better price or low price from other, they switch to a
different ride sharing app.
Product/service differentiation: In this app industry have no service differentiation. In this way, rivalry is
high.
Availability of substitute:In this app industry availability of substitute is high. Since traveler have more
choice to get sameservice in substitute transportations industry like bus, CNG, leguna, etc. and thecost are
also less expensive.
II. Bargaining Power of Suppliers :( 17-90262-2)
Based on our analysis bargaining power of supplier is strong.
Uber follows outsourcing strategy. Uber owns no vehicles or employs drivers. The company argues all
drivers have their own cars, self-employed, and work with Uber on a contractual basis. Car owners,
motorcycle owners are the supplier of Uber. As a result, owners get freedom to choose the others
organizations apps like pathao to get a ride when they didn’t get any ride request from Uber. So here
suppliers of Uber have a high bargaining power.
26
But Uber have no other choice to take of the suppliers that it is outsourcing although if anything bad
happens, it directly affects Uber’s name and its brand image.
III. Bargaining power of buyer:(17-90262-2)
Based on our analysis bargaining power of buyer is strong.
Switching cost: In this industry customer switching cost is low. The following table shows the fare of
different such service providers.
Name of the App Base Fare per km
Uber Moto
Uber Car
Tk.30 + Tk.12/km
Tk.40+Tk.3/minute+Tk.18/km
Pathao Ride
Pathao Car
Tk.25+Tk.12/km
Tk.50+Tk.2.5/minute+Tk.20/km
Shohoz bike Tk.30 + Tk.12/km
So, it is seen that the faring policy is almost similar to each other. Moreover, lots of customer depends on
the discounts and promo codes. So, they can easily switch to other service providers if they are not happy
or if the service is not satisfactory to them. As a result, the bargaining power of buyer is high.
Informed about seller product, price, place, promotion: In this industry customer have right to comment for
their service. And also, in the ride sharing app industry it has sms feature and customer help line by which
the rider or the user can easily communicate with the support canter for their service. And also, rider or
customer communicate through Facebook because all the ride sharing app have a page and, in this page,
customer share their any comments that are related to service. All people know about service that is good
or bad and every company know that what kind of things they need to improve. So, customers have more
power.
IV. Threats of new entrains :( 17-90262-2)
Based on our analysis threat of new entrains is moderate.
27
Easy to imitate: This service or business model on which the industry is operating at the moment is not take
lot cost to build and is not costly to imitate. Because their service app, ride share and pick up point to
destination are not hard to copy. So, it means that threats of new enters is high.
Govt. Restriction: Govt. has a restriction in this industry. Cabinet Secretary Shafiul said the companies will
not have to share their revenue with the government, but the one-year term enlistment certificate will cost
Tk 100,000 with an annual renewal fee of Tk 10,000.28
Now ride sharing app have to maintain 11 rules that provide by govt.29
so entry barrier is high.
Product differentiation: Within ride sharing app industry have no product differentiation because other
competitors such as Shohoz, pickme, obhai giving the same service but only pathao has product
differentiation because they also provide food and parcel delivery service through their app. It is not
sufficient in this industry. So, it means product differentiation are low and therefore threat of new enters is
high.
Common technology: All company use same technology in this app industry. They provide their service in
same way they have no differentiation (safety and security, use internet, need smart phone, ride sharing
with face book or friends). So, company easily enters into the new market that’s why entry barriers are low.
Strong brand and customer loyalty: In this app industry have no strong brand or customer loyalty. Customer
uses all service which service is available. But compare with UBER, now Pathao is the almost similar
establish app service in this industry but it does not have brand loyal in the customer mind because customer
use another app service based on variation, price, discount and service. For this reason, new company easily
come in this industry. So, threats of new enter is low. In this app industry brand and customer loyalty are
low because it is new concept of public transportation. So, threat of entry barrier is low which means threat
of new entrants is high.
V. Threats of substitute product :(17-90262-2)
Based on our analysis threat of substitute products is strong
In our app industry substitute products are road transportation like bus, rickshaw, CNG, leguna, easy bike
etc. In these industry threats of substitute products are high because people easily get bus, rickshaw,
28
https://bit.ly/2A8zY5N
29
https://bit.ly/2TvLLnM
28
CNG, leguna therefore people no need to smart phone or internet. Switching cost is less expensive than
app transportations service. At present our industry services are limited and it cannot go outside of Dhaka
that’s why passenger cannot use app service for long distance but substitute’s service bus and CNG they
go outside form Dhaka. Upcoming metro railway service will be considered as the big threat of
substitution. The shifting cost in the market for substitute service is also low, so customer may go
forsubstitutionanytime. Therefore, threat of substitute product isstrong.
C. Industry Life Cycle Analysis (17-90262-2)
Industry Life Cycle Analysis
29
From this graph we can see that our industry falls under green marked growth stages.
That mean we are in the growing situation and attracted the customers by delivering good services.
Customers already know about us and they have already accepted us in the market place.
As we are in the ride sharing app industry everyone knows that how much responses we have received from
the customers. This is the era of new technology and fastest service, and consumers taste have been changed,
they desire the innovation. And ride sharing app industry has shown their innovation by using the fastest
technology and introduced them in the marketplace as a leader.
As we are saying that we are already in the growth stage that means we are in a good shape but we have to
face some challenges also. According to the Product life cycle stage we know that from the growth strategy
it becomes tough for a particular industry to survive because of the competition. Once we will reach in the
maturity stage then we will have to struggle only because of survival not for going in the declining stage.
So, to maintain those ups and downs ride sharing app industry should focus on their opportunities and avoid
those threats.
As a company UBER falls under the ride sharing app industry facing the growth stages. We know numbers
of online app users are increasing, keeping this in minds we need to go ahead to deliver our service which
is a great source for doing our business. Moreover, for this reason targets market will be increased and we
can do our business really good by fulfilling the increased target market’s demand. Nowadays imitation is
really very easy so we have to make sure that no one can harm us when similar companies with similar
services will enter into this industry. That means knowing the threat we have to tackle this carefully for our
betterment and enjoy this growth stage.
D. EFE Matrix (17-90255-2)
In the following analysis we have identified key external factors (opportunities/threats) that are present
based on our PEST, Porter’s Industry analysis and our primary research. See Table 1C1 in the appendix
External Factor Evaluation (EFE) Matrix is a strategy tool used to evaluated firm (Uber) external
environment and to reveal its opportunity as well as threats. In the following analysis we have identified
key External factors (opportunity/threat) that are present based on our primary and secondary research. See
Table 1C1 in the appendix section for a summarization of our EFE analysis through the EFE Matrix.
30
opportunities
The reason behind opportunity 1 to 4 is given equal weight and rating because Increasing trend of internet
user, Rapid acceptance from customer, Availability of getting workforce, Economic growth in Bangladesh
this are the opportunities that help Uber to generate sustainable profit if Uber carefully utilize those.
The reason behind opportunity 5 to 8 is given equal weight and rating because Changing Preferences of
people, currently low interest rate, Government policy right now this are the opportunity that actually helps
to run business smoothly. If Uber utilize this opportunity properly defiantly it can catch customer attention.
Opportunity 1: Increasing trend of internet user
Ride sharing App industry is highly depends on internet that’s way weight .10 is given. The data as follows
The total number of Internet Subscribers has reached 91.194 Million at the end of September, 2018.
The Internet subscribers are shown below:
OPERATOR SUBSCRIBER (Million)
Mobile Internet 85.381
WiMAX 0.080
ISP + PSTN 5.734
Total 91.194
30
So here the company response of company is superior that is way rating 4 is given. So weighted score is
.40
Opportunity 2: Rapid acceptance from customer
30
https://bit.ly/2QUvfPs
31
Ride sharing app now get acceptance from customer rapidly that is why weight .10 is given. According to
our survey use of own vehicle is 14.6 present, y bus or cng is 47.6 percent, 36.9 percent people are using
ride sharing app. We assumed 36.9 percent is rapid acceptance, because ride share app introduced in
Bangladesh at December 2016.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 only 10,000 in January.31
Here we thought company response is superior that is why rating 4 is given.
Opportunity 3: Availability of getting workforce
Unemployment rate is remarkably low in Bangladesh, only 4.5% in 2010 (Labor Force Survey 2010, BBS).
Unemployment rate for 2010 becomes as high as 24.0 percent if underemployment is added to
unemployment rate. It is opportunity for riding app industry to getting work force.32
The ride sharing space
in Bangladesh gained immense acceptance and popularity. Not only ride sharing has solved the mass
problem of finding vehicles, but also the sector created employment opportunities for more than 40,000
people.33
So availability of getting workforce is plus point for Uber.Considering all of those we give weight
.10 and we assume that where uber response is superior so rating is 4. So weighted score is .40
Opportunity 4: Economic growth in Bangladesh
Per capita income rises to $1,751, according to Bangladesh Bureau of Statistics Bangladesh has achieved
the highest-ever 7.86% GDP growth in the 2017-18 fiscal year, widely surpassing the estimated growth of
7.65%. The per capita income has increased to $1,751 in FY2017-18 from $1,610 in the previous fiscal
year, according to Bangladesh Bureau of Statistics (BBS). The final figure of the country’s economic
growth was placed at the meeting of the Executive Committee of the National Economic Council (Ecnec)
held in the council’s conference room on Tuesday, reported UNB. The ride sharing industry utilizes this
condition properly. So, we give weight .10 of this. In the rating we give 4 because as uber response as
mentioned above. we see uber offerings is fit to average income people. so, the weighed score is
.40. we assume that here uber response is superior. When country in economic growth condition that
means people of the country have enough money in hand. When people have enough money in hand, they
also Spend money as they feel when necessary. So, Uber can see this as an opportunity
Opportunity 5: Changing Preferences of people
31
https://bit.ly/2yTFOav
32
https://bit.ly/2Gk9WTp
32
A major socio-cultural factor is changing consumer preferences. What was popular and fashionable 20
years ago may not be popular today or 10 years down the road. In before people have to rent a car or hire
cng for their travel. But now this trend has been changed. Ride sharing service takes this opportunity and
change customer preference. People are increasingly choosing services like Uber, Pathao and Obhai over
CNGs and taxis. Although the car-renting services believe their business system is yet untouched from the
trend’s disruptive nature, the CNG workers union upheld strikes during the months of November &
December 2016. Uber, Pathao, Obhai altogether log in 10,000 rides a day. They already set a transportation
platform in consumer mind34
.Considering all of those condition we give weight 0.05 and rating 3. For rating
we consider uber verity in product offering, because people of Bangladesh different types of income level
to comply with changing preferences of people Uber need verity in product offerings. Here weighted score
is 0.15.
Opportunity 6: Currently low interest rate
Both public and private banks have decided to lower lending rates to single digits from July 1 -- a move
that comes weeks after the government showered them with a raft of privileges, drawing criticism from
different quarters. There will also be a cap on the deposit rates so that those remain in tune with the lending
rates. Private Banks have set the deposit rates at 6 percent while the public ones are yet to decide on it.
Lauding the decisions made at two separate meetings yesterday, Finance Minister AMA Muhith said this
would help boost investment. A number of economists have also welcomed the move but cast doubts on its
implementation. They also pointed out that the cut in deposit rates will affect savers.The finance minister,
at a meeting at his secretariat office, directed the chief executives of state-owned banks to keep the lending
rates below 10 percent.35
Considering all of those conditions we give weight and rating consecutively 0.05
and 3 and the weighted score is .15.
Opportunity 7: Government policy right now
the government policy regarding ride sharing industry is favorable now because Government impost new
role that one freelancer car owner can attest to only one ride sharing app, considering this we give weight
and rating consecutively 0.03 and 3 and the weighted score is .15
34
https://bit.ly/2CuGBlK
35
https://bit.ly/2RVZ4MV
33
Opportunity 8: Increasing per capita income of Bangladeshi people
In 2018, per-capita income was estimated as per IMF data at US$4,561 (PPP) and US$1,754 (Nominal). It
is opportunity for both ride app and uber both Bangladesh now close to mid-income status.so we decide
weight and rating consecutively 0.05 and 3 would be appropriate and the weighted score is 0.15.
Threats
Threat 1: Political unrest can cause damage
The Dhaka University professor emeritus said he saw no sign of tolerance in the ruling Awami League and
the BNP, which sits out of parliament after the boycott of the 2014 polls for the demand for a neutral
election-time government. The BNP is pressing for the same demand again this time. It says it will not take
part in the next election with Sheikh Hasina as prime minister while the Awami League is firm on its
position that it will remain in power during the polls in line with the Constitution. “Conflict will take place
naturally when the two rivals show no sign of tolerance,” Prof Serajulsaid. He also fears that such
differences of opinion between the two major parties will hinder Bangladesh’s progress on all fronts. Aeyes
are on politics while figuring out how the next year will be like36
, as everything else in a state circles around
politics previously also in Bangladesh political unrest happen unrest happen and the rogue person during
those time cause damage of car and buses and other transportation vehicles. Considering those condition
weight and rating consecutively .10 and 1 and the weighted score is 0.10.
Threat 2 number of competitors
Uber competitors are Pathao, Obhai, Shohoz and other ride share apps those competitors actually creates
options to passenger it is big threat for Uber. So, considering this condition we decide weight and rating is
.10 and 1 and the weighted score is .10.
Threat 3 Fuel cost may increase for global unrest
The factors driving up the price of oil is OPEC, or the Organization of Petroleum Exporting Countries, is
the main influencer of fluctuations in oil prices. OPEC is a consortium made up of 14 countries: Algeria,
Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the
United Arab Emirates and Venezuela. OPEC controls 40% of the world's supply of oil. The consortium sets
production levels to meet global demand and can influence the price of oil and gas by increasing or
36
https://bdnews24.com/bangladesh/2018/01/01/bangladesh-begins-2018-amid-fears-of-political-volatility-
ahead-of-general-elections
34
decreasing production. OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future,
but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a
barrel. OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in
prices.37
Uber may incur loss. So, considering those condition weight and rating we decide .10 and 1 and
weighted score is .10.
Threat 4 Competitors are strong
Above shown Figure: Uber and other fare chart the competitors of uber are low fare than uber
although Uber get fit mover advantage but it ill not exists so long so we decide weight and rating
consecutively 0.05 and 1 so the weighed score is 0.05.
Threat 5 Customers have many options
Ride-hailing service Uber is the talk of the town now. Although this very concept of 'Uber isation'
is new in Bangladesh, Uber isn't the first or only ride-hailing service operating in the country. In
the last couple of years, we have seen a significant number of local startups (some backed by
foreign VCs) getting into the ride-hailing business. Some of these services are very good, providing
premium ride quality and levels of service. Others are not so great, but get the job done somewhat.
Here are some of the few that caught our attention are CHALO, GARIVARA, AMARBIKE,
PATHAO, TAXIWALA. So, we identified uber targeted customer have so many options to pick
up that is main threat of Uber so we decide weight and consecutively 0.05 and 2 and weighted
score is .10.
37
https://bit.ly/2wrEu0J
Page 35 of 87
E. IFE Matrix (17-90123-2)
Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluated firm (Uber) internal environment
and to reveal its strength as well as weakness. In the following analysis we have identified key internal
factors (strengths/weaknesses) that are present based on our primary and secondary research. See Table
1D1 in the appendix section for a summarization of our analysis of internal factors through the IFE Matrix.
I. Strengths:
➢ Strength 1: The first opportunity we want to talk about most valuable and well recognized brand. We
all know uber is an international company and well-known recognized company. Our Bangladeshi ride
sharing company not international organization. Uber have highest market share other than Bangladeshi
ride sharing service company. In Bangladesh this brand (Uber) are more profitable than other
competitor. Many customers always took well known company. Because brand value is huge fact. I
think this brand help to create customer loyalty. In survey questionnaire we saw the highest number of
customers are use uber. And also, foreigner is always took international brand and well recognized
brand service company.
we want to give weight is 15%. The highest weight. I give rating is 4 because I think this is the major
strength for uber in Bangladesh. Total weighted score is .60
➢ Strength 2: The second strength is Faster and stronger services. Superior customer services will be
first priority for our business. There are one and only ride sharing company that available 24 hours for
the customer. We know uber is world recognized company. This company services more and stronger
rather than any other local company. Uber always available which place cover in uber in Bangladesh.
For this reason, we give weight 10% and rating 4. Altogether the score is .40. rating is 4 because I think
this reason is major strength for uber.
➢ Strength 3: The third strength is strong software and app. we already all know uber is world recognized
company. There have strong software and app. In Bangladesh others ride sharing companies’ apps and
software are very weak, when many people use those rides sharing services then software not working
properly. Butuberhave no problem. In questionnaire number 6 we saw customer are highly satisfied
with Uber using ride sharing app. They do not face this type of problems.
Page 36 of 87
I think this is also major strength for uber that’s why rating is 4 and weight is 10%. And weighted score
altogether is .40
➢ Strength 4: The Four strengths is competitive advantages. Competitive advantage means different from
others advantages. Our company uber is first starting their business in Bangladesh. That’s why most of
the customer is loyal in this company. The company takes the first mover advantage. This company’s
service also better service compares to other companies. Uber expanding their business in Bangladesh.
In survey question report customer is focus on safety issue. Our company uber, main target is ensuring
to customer safety and time maintain.
We decide to give weight 10% and rating is 4 and weighted score is .40. I think this is major strength
for uber.
➢ Strength 5: The fifth strength is emphasis on customer satisfaction. In survey questionnaire number 6,
we saw the highest number of people are satisfied with using uber ride sharing app. The main reason
of uber popularity is customer are more satisfy to offering varies form of features and maintain safety
issue. Features such as- schedule ride, estimated time to arrival, car waiting schedule, fare estimate,
multiple payment option, contact drivers, review, rating, cancel trip, trip history, trip information,
navigation and many more to come. Recently in Bangladesh uber added car variance like- uber X, uber
premium, uber XL, Hire X, Hire premium. Those types of option not available in others competitor.
These were the features of uber which helps it to provide quality services to its customer.
I give weight 5% and rating is 3.and weighted score is 0.15. Because most of the ride sharing service
company features are same.
➢ Strength 6: The six strengths are dynamic pricing strategy. Uber has adopted the dynamic pricing
strategy which works on the demand supply principal of economics. Higher the demand, higher the
price. It becomes really more beneficial for Uber Company and drivers. When peak hour or time as
well as drivers earn big amount of money. I think this is minor strength for uber. That’s why rating is
3 and weight is 5%.and weighted score is 0.15.
➢ Strength 7: The last strength is availability and useable in all situation and condition. People are more
technological oriented. They know how to use this app. When they don’t find aby vehicle they can
easily access to this app and reached their destination. Uber is available 24 hours. Customers can use
anytime like – rainy, foggy, sunny.
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Uber have served in a wide range which leads to our profit for this specific reason we gave weight 5% and
rating 3. Altogether the weighted score is .15.
II. Weaknesses:
I. Weakness1: The first weakness is customer have more bargaining power. When ride sharing app
is run by the customers, they know details regarding trip, fare and everything. To make customer
comfort they have to give discount, and other facility, like pricing and discount primo code. In
question survey report many customers looking at pricing which company is lower rate. This type
of customers any time switches this company. That’s we give weight 10% and rating is 1. Because
this issue is major weakness. Altogether score is .10.
II. Weakness 2:38
The second weakness is Highly depending on internet. We all know uber is
technological based company. This company depends on internet. Bangladesh is developing
country. Internet speed slow or poor in my country other than develops country. Uber company and
customers also facing problems in Bangladesh because all time internet speed not well in every
area. Without internet we cannot use this app. Moreover, the service of uber is such that it can be
better managed on the Smartphone or smart device with high speed internet.
I will give weight 10% and rating is 1. I think this also major weakness for uber in Bangladesh.
Altogether score is 0.10
III. Weakness 3: the last weakness is easily imitated. We know uber is first ride sharing service in
Bangladesh. They are first introducing these services. But after some days some others company
also came in Bangladesh market. Because low entry barrier in this industry. Some others company
copies my services and continue they run their business. For example,pathao, obhai, shohoj. I think
this is also weakness for uber in Bangladesh. For this weakness we decide to give weight is 10%
and rating is 1. Altogether score is .10
IV. Weakness 4: Another weakness is no new additional features. our first competitor is pathao. Pathao
is local company. but there have many features in one app. Like – car, bike, pathao food. Pathao
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delivery. On the other hand, our companies have only car and bike. Another competitor is obhai.
There have another extra service is CNG. I think this issue also weakness for uber. That’s why we
decide to give weight is 5% and rating is 2. Total score is 0.10.
V. Weakness 5: The last weakness is less incentives. Uber give less incentives or customer discount
rather than other ride sharing service company. its affected at customer loyalty. Because in survey
questionnaire, question number 2 we saw if customer get better price or discount customer are
switch to different ride sharing service. It’s very riskier for uber. So, we gave weight 5% and rating
is 2. Altogether weighted score is .10
Page 39 of 87
F. VRIO Analysis
Following IFE matrix, we wanted to see if the organization possesses any core competencies or not. For
that we conducted the VRIO analysis, focusing on 3-4 of the most valuable resources and capabilities Uber.
See Table 5 for summarization of our VRIO analysis. The most valuable resources we wanted to focus on
are: Strong software and app,availability and useable in all situation and condition Faster and stronger
services, Most valuable and well recognized brand. Details of the VRIO analysis is below.
➢ 1. Strong software and app: The reason it is marked valuable because we already all know uber is
world recognized company. There have strong software and app in Bangladesh others ride sharing
companies like Pathao, Shohoz, apps and software are not very user friendly, when many people use
those rides sharing services then software not working properly. But uber have no problem. In
questionnaire number 6 we saw customer are highly satisfied with Uber using ride sharing app. They
do not face this type of problems. Strong software and app it is rare right now in Bangladesh because
other ride share app is not very user friendly like uber. So, result is Temporary competitive advantage.
➢ 2. Availability and useable in all situation and condition: It is valuable because in Dhaka, Uber’s
availability and useable in all situation and condition is possible. People are now use to with technology.
They know how to use this app. When they don’t find any vehicle, they can easily access to this app
and reached their destination. Uber is available 24 hours. Customers can use anytime like – rainy, foggy,
sunny. But is not rare because Uber competitors are providing same services. So, the result is
competitive parity.
➢ 3. Faster and stronger services: Faster and stronger services is valuable and it is valuable because it
is an only ride sharing App that available 24 hours for the customer. It is hard to imitate because This
company services more and stronger rather than any other local company. Uber always available in
Dhaka. Organization Organized because Mobile app-based service Uber began operating in Dhaka on
Nov 22 2017. The BRTA also published a notice ordering the company to halt service, calling it
‘illegal’. So, the result is unused competitive advantage.
➢ 4. recognized brand: We all know uber is an international company and most recognized
company in our country. Uber have highest market share other than Bangladeshi ride sharing
service company. In Bangladesh this brand (Uber) are more profitable than any other
competitor. Many customers always took well known company. That is why it is valuable,
rare, hard to imitate in this factor Uber have sustained competitive advantage.
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Page 41 of 87
G. Competitor Analysis
Uber Pataho Obhai Shohoz
Company Highlights
Key competitive
advantage
We are providing so
many discount offer
They providing
different types of
service
They have male and
female service in one
app
Payment with mobile
banking (BKash)
Major strategy Cost leadership Cost leadership Growth and build Cost leadership
Market information
Target customer Mass people Youth customer and
service holder
Youth and service
holder
youth and service holder
Market share 50% 30% 10% 10%
Marketing strategy online marketing,
commercial add
Online marketing, tv add Online marketing Online marketing
Target customer
behavior
Use frequently Use frequently Less use Once in a week
Product/Service information
Motorcycle, Parcel, Car,
Food service
CNG, car, motorcycle
for female
Car & motorcycle and
Food service
Page 42 of 87
Major products
&Services
Different variation of
car uber X, XL, Hire X,
Premier, Hire premier
Pricing
Price high but provide
more discount offer
E.g.Base fare 40tk
Per Min 3tk
Per Kilo 18
Price is lower
E.g.Base fare 40tk
Per Min 2tk
Per Kilo 15tk
Price is lower
E.g.Base fare 40tk
Per Min 1.5tk
Per Kilo 16tk
Price is higher
E.g.Base fare 40tk
Waiting Per Min 3tk
Per Kilo 20tk
Distribution channels
Map is so strong,
available all time
Available motorcycle all
time, everywhere
Not much strong Moderate
SWOT
Strength Strong financial
positionposition
Many service provider
in one single app
Female ride service
provider which are not
given by competitor
Easy payment system
Weakness Less service offer Their driver are not
skilled enough
No available vehicles
during pick hour
No available vehicles
during pick hour
Opportunity
More service can add new technology More vehicles can add in
the service
More vehicles can add in
the service
Threat Political instability Political instability Political instability Political instability
Table 6: Competitor analysis
Page 43 of 87
H. Competitive Profile Matrix (CPM)
Next, we wanted to conduct a Competitive Profile Matrix (CPM). We focused on three main competitors
of our company. They are: Pathao, Shohoz & Obhai. We are choosing these two companies as our
immediate competitors. We choose those company as our immediate competitors because in our country
there are very few rides sharing company & among them Uber, Pathao & Shohoz are the best. There is
another competitors company which is Obhai but Obhai is not as much popular than Pathao & Shohoz. So,
we choose Pathao & Shohoz as our immediate competitors. See Table F1in the appendix section for the
summarization of the CPM matrix. Details of CPM analysis is below.
I. Brand reputation: (17-90183-2)
The first critical factor of ride sharing industry is brand reputation. This is a critical factor because
without brand reputation no industry can run their business properly, We give .20 weight in this factor
as in ride sharing industry customer safety is first priority & a reputed brand name gives customer
proper safety &satisfaction. Here our company Uber’s ratings is 4 & score .80, Pathao’s ratings is 3
& score .60, Shohoz’s ratings is 2 & score .40, Obhai’s ratings is 1 &score .20. Ubers ratings is high
because we all know that Uber is an international company & have well recognized brand name
whereas Pathao, Shohoz & Obhai is not international company & don’t have much brand reputation
compare with Uber. Many customers always took well known company especially foreign customer
as brand value is a huge fact for them.
II. Customer satisfaction: (17-90183-2)
The second critical factor of ride sharing industry is customer satisfaction. This is a critical factor of
ride sharing industry because ride sharing industry fully depends on their customers. So make this
industry successful customer satisfaction is must. We want to give weight .20 in this factor because
customer satisfaction helps to increase the industry. Here our company Uber’s ratings is 4 & score .80
whereas Pathao’s ratings is 3 & score .60, Shohoz’s ratings 2&score .40 &Obhai’s ratings is 1 & score
.20. Here also our company score is high because our company provide 24/7 instant customer service
whereas Pathaodonot provide 24/7 customer service. They have a fixed time for this
service.Shohoz&Obhai also don’t give proper customer service as their cutomer service agents are not
available all time. In fact their customer service is worse than Uber &Pathao. As uber provide the best
service than its three competitors, Uber’s customer service is the stronger
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III. Mobile advertising: (17-90183-2)
Mobile advertisement means advertising though mobile phone such as sending text message on
mobile, direct call or in cases social media which is also a part of mobile advertisement. This is the
most important critical factor of ride sharing industry because it is the main advertising policy by
which this industry can reach & attract their customer directly and so we give .20 weights in this factor.
Here our company ratings are 4 & score .80, Pathao’s ratings is 3 & score .60, Shohoz’s ratings is 2
& score .40, Obhai’s ratings is 2 & score .40. Here Uber& it’s main competitor Pathao’s score is
similar because both of the company tried their level best to reach their customer as fast as possible
but our company Uber reach more firstly towards their customer as they have strong mobile
advertising policy such as sending text message to the customer, call them & by social media. On the
other hand, Shohoz&Obhai is little bit slowly than our company Uber.
IV. Price competitiveness: (17-90183-2)
Pricing is the most important factor of ride sharing industry. This is a critical factor because now a
day’scustomer are very much price sensitive. They mostly compare service by price. So we want to
give .20 weights in this factor. Here our company Uber’s ratings is 3 & score .60, Pathao’s ratings is
4 & score .80, Shohoz’s ratings is 2 & score .40, Obhai’s ratings is 2 & score .40 .In this factor our
company ratings is little bit low than Pathao because now Pathao has the reasonable price fare than
other ride sharing company. Mainly Uber’s calculation is little bit complicated which depends on
several factors such as base fare,distance,time, rounding etc.
V. Availability of getting workforce: (17-90183-2)
This is acritical factor because due to increasing ride sharing industry unemployed people have chance
to get in workforce. We give .10 weights in this factor because ride sharing industry increasing the
workforce and unemployment rate decreasing. Here our company Uber’sratings are 2 & score .20,
Pathao’s ratings is3 & score is .30, Shohoz’s ratings is 3 & score is .30, Obhai’s ratings is 3 & score
is .30. In this factor Uber’s ratings is low because Uber don’t have service variation. On the other
hand,Pathao, Shohoz&Obhai has service variations such as food delivery, parcel delivery, ticket
booking, female bike driver etc.
VI. Added product feature: (17-90183-2)
It is a critical factor because ride sharing industry now tried to add new feature to their service. We
give .10 score in this factor. Here our company ratings is 2 & score .20, Pathao’s ratings is 3 7 score
Page 45 of 87
.30, Shohoz’s ratings is 3 & score .30, Obhai’s ratings 3 7 score .30. Uber’s score is low in this factor
because Uber don’t have new feature than its competitors. Through Uber is the first ride sharing
company in our country they don’t concentrate much on their product feature & variations. They only
have car &bike service. On the other hand Pathao, Shohoz, Obhai‘s score is high because they offer
various type of services such as: food delivery, parcel delivery, online tickets,cng service, female bike
driver etc.
Finally, we can say that the overall score of our company Uber is 3.4, Pathao is 3.2, Shohoz is 2.2 & Obhai
is 1.7. Uber’s score is high mainly for their brand reputation, strong customer service, discount offer etc. so
it can easily said that Uber’s critical success factors are more strong than its other competitors Pathao,
Shohoz ,Obhai.
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Customer purchasing criteria
1 2 3 4 5
Poor Excellent
Delivery on criteria
I. Value Proposition Analysis
Uber Pathao Obhai Shohoz Sub. Industry
1 Pricing
2 Availability
3 Customer Service
4 Discount offer
5 Service verity
6 Pick-up & drop-up point
7 Waiting time
Page 47 of 87
Customer purchasing criteria 1: Pricing:(17-90124-2)
Score:
Pricing is the most important criteria for any service industry. Ride sharing is a service based industry. So
pricing is very important for this industry. now a day’s customer are very much price sensitive. They
compare with one company to other service by price.
Most of the customers in this ride sharing industry are young generation who are student. They are very
price sensitive. Middle class people are also using ride share app. So this is the most crucial criteria for
choosing any ride share app.
For our analysis we score different ride Share Company based on some criteria. We select one specific
place, destination & time then we give them score according to cheapest price. Based on our analysis
company score are given bellow:
➢ For ride share industry substitute industry are bus, rickshaw, leguna which fare is very low that’s why
we give them score 5.
➢ Pathao has best price among its entire competitor. That’s why we give them score 4.
➢ Uber price are little more complicated which depend on several factor. Its estimated fare may be
increase due to travel duration. That’s why we give them score 3.
➢ Obhai & Shohoz offering similar price which are little bit higher than other competitor. That’s why
we give them score 2.
Uber is well known brand all over the world. They have enough ability & resources to improve pricing
strategy and fulfilled customer need. Because low price is customer inner desired need. In Bangladesh right
now, their direct competitor is pathao. As uber is global brand so they have ability to compete with pathao
by their network, resources and experience in BD.
Customer Purchasing criteria 2: Availability:(17-90124-2)
Score:
Availability is another important for ride sharing industry. Because if vehicle are not available during travel,
than customer will lose their interest over that particular company. Customer always prefers that company
which is available all the time.
Uber Pathao Obhai Shohoz Sub Indus.
3 4 2 2 5
Uber Pathao Obhai Shohoz Sub Indus.
5 4 1 2 5
Page 48 of 87
Most of the customer who works in city they need ride service any time specially when regular
transportation (bus, cng) are not available. That’s how it relates with customer behavior.
For our analysis we score different ride Share Company based on regular availability and during unrest
situation. Based on our analysis company score are given bellow:
➢ Uber is available all the time even in unrest situation that’s why we give them score 5.
➢ Pathao are also available all the time but during unrest situation pathao driver stop their app and provide
contractual service which are illegal. That’s why we gave them score 4.
➢ Obhai are not available during pick time. Their entire vehicle shows busy. That’s why we give them
score 1.
➢ Shohoz are not so available all the time but they are available more than obhai. That’s why we give
them score 2.
➢ For ride share industry substitute industry are bus, rickshaw, leguna which are available all the time,
that’s why we give them score 5.
Customer purchasing criteria 3: Customer service:(17-90124-2)
Score:
Ride sharing is a service based industry. So customer service is very important for this industry. Before,
during and after service customer can face many problems. Which company can solve as many customer
problem they will get that much customer retention. Great customer service will result in maximum
customer retention.
Most of the customers in this ride sharing industry are young generation who are middle class people. They
are very sensitive about customer service. If they don’t get good customer service easily they can switch
another company.
For our analysis we score different ride Share Company based on some criteria. Which are: problems and
solutions in customer service and lead time in customer service.
➢ Based on our analysis we found that Uber gives best customer service among other company. They
also provide solution with a very short time. That’s why we give 5 score for UBER.
Uber Pathao Obhai Shohoz Sub Indus.
5 4 3 3 1
Page 49 of 87
➢ Pathao also provide good customer service but they are not so good at lead time in customer service.
They take few times for that. That’s why we gave them score 4.
➢ Obhai and shohoj are new in this industry so they are not still so good in customer service. That’s why
give them score 3 & 3 separately.
➢ Our substitute industry doesn’t provide any customer service that’s why we give them score 1.
Our company is still good in these criteria. They are fulfilling customer needs continuously. They have to
also work continuously on it. Otherwise competitor can reach us easily. Rivalry among competitor is very
high in this industry.
Customer purchasing criteria 4: Discount offer:(17-90124-2)
Score:
For ride share industry discount offer is very important because by this offer company can engage customer
with their product. More company will provide discount offer more customer will use their ride service.
Because end of the day customer wants low price over then brand loyalty, in this ride share industry. So
that’s why it’s very important. There are several factors that affect consumer buying behavior and most
important factor is discount offer.
For our analysis we score different ride Share Company based on some factor. Which are discount % and
discounted money &ride amount. Based on our analysis company score are given bellow:
➢ Uber provide highest amount of discount offer 60- 70% which is up to 50-70 tk. This offer valid for 15
rides. That’s why we gave them score 5.
➢ Pathao provide 2nd
highest amount of discount offer 60% which is up to 45 tk. This offer valid for 20
or 10 ride. That’s why we give them score 4.
➢ Obhai offer 20-60% which is up to 30-40 tk. This offer valid for 5-10 rides. That’s why we give them
score 3.
➢ Shohoz provide 50% discount offer which is up to 50 tk. But this offer will valid only for 1 ride. That’s
why we give them score3.
➢ Our substitute industry doesn’t provide any discount offer that’s why we give them score 1.
Uber Pathao Obhai Shohoz Sub Indus.
5 4 3 3 1
Page 50 of 87
By providing discount offer uber try to fulfill customer need. Their price is little bit higher than other but
they makeup them by discount offer. They know how to adjusted price by this discount offer. They always
try to provide best discount offer so that they can 1 step ahead from competitor.
Customer Purchasing criteria 5: Service verity:(17-90124-2)
Score:
It’s very important that customer can get many services and service varity from one app. Customer always
want different service option which is suitable for them. So service verity is important for ride sharing
industry according to market demand.
Different customer has different types of behavior. Someone wants bike ride service, some wants car ride
service or someone want postal service. It’s very easy for customer if they get different service from one
single app. Right now every ride share company tries to introduce service verity so that they can capture all
customer segments. In future these criteria will be more important because of customer demand.
For our analysis we score different ride Share Company based on their service differentiation and category
which they are providing right now. Based on our analysis company score are given bellow:
➢ Pathao is providing different service category like car, bike, postal and food. That’s why we give them
score 5.
➢ Uber provide two types of service. Which is bike and car but they have different variation on car like
Uber X, Hire X, Uber XL, Premier, Hire premier. As they don’t have different service category that’s
why we give them score 4.
➢ Obhai has three different service verities which is bike, cng, women ride. That’s why we give them
score 4.
➢ Shohoz has two types of service car and bike. But right now they are providing only bike service that’s
why we give them score 2.
➢ Our substitute industry has different service verities which are Bus, Rickshaw and Laguna. That’s why
we give them score 3.
Globally Uber is providing car ride service. In Bangladesh now they are focusing only on car and bike ride
service. They have enough variation on their car segment. So for fulfill customer need they have enough
ability to introduce new service verity in Bangladesh. Because most the competitor already providing
different service verity. Based on customer demand in future they will also provide this.
Uber Pathao Obhai Shohoz Sub Indus.
4 5 4 2 3
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Customer Purchasing criteria 6: Pick-up & drop-up point:(17-90047-2)
Score:
It’s very important that customers may request for the service at any point of Dhaka city of their service
area. So a lots of request may come to the driver s apps. Sometimes drivers don’t want to come the exact
location because of various factor like traffic jam, tiny roads or may be the palace is not known to him. But
most of the drivers they are very good in communication skill and feel free to reach pick up point of the
customer. This is applicable for all the ride sharing apps in our country. But drop up point is same behavior
has arisen from the driver of apps. Because other ride sharing apps they are preview the destination of the
customer in apps details. So the driver is predetermined set to drop the customer that point. On the other
hand Uber is different for the competitor because only they believe that you are committed to go anywhere
to their providing services area. When you are joining as a driver of Uber. That’s why they are not showing
the customer destination previously. So it’s tiny complicated for Uber to proper delegation of their driving
service. Different customer has different types of behavior. Someone they are want to meet the driver of
their exact pick up point they are not keep to step ahead to reach the driver. For our analysis we score
different ride Share Company based on their service differentiation and category which they are providing
right now. Based on our analysis company score are given bellow:
➢ Uber rating (5) is higher than any other ride sharing company. It’s an international company so they
have different strategy for customer satisfaction. They are just showing exact time to get the car or bike
service. Sometimes it may vary because of network speed. Drop out service is good enough than any
other because Uber driver they have no obligation to drop the customers any point. It’s one of the
reasons Uber is charging on kilometer basis.
➢ Pathao rating (4) because most of the time their driver accept the request after 1 min they just cancel it.
And apps didn’t provide update history of the car or bike. Drop out is as usual.
➢ Obhai rating is slightly low (3) than Uber because they are showing bikes or car is your nearby. Actually
when you just request for service then the apps showing ten or 20 minutes to pick the bike, cng, and
car service. On the other hand drop out service is normal as other apps.
➢ Shohoz rating (3) because of their bike rider’s quantity very low and their drivers are not good behave
to the customers and also did not provide location properly. Drop out is as usual.
➢ Our substitute industry has different as like local bus, Layguna etc. Local bus pick up and drop up point
are not suitable for us because of when I go to office or university that time my area nearest bus stand
Uber Pathao Obhai Shohoz Sub Indus.
5 4 3 3 1
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pretty much too long. And walking times 20-30 minutes. Also we do not know when we are go to actual
drop up point.
So that, internationally at present time comparatively Uber and also Pathao Pick-up & drop-up point are
well. Others ride sharing apps are not maintain well Pick-up & drop-up point customers criteria.
Customer purchasing criteria 7: Waiting time: (17-90047-2)
Score:
For ride share industry waiting time is very important issue because by this issue company can engage with
their customer. Most of the ride sharing company will think about their customer are not wait to much when
he or she go to the office or anywhere in Dhaka city. If any ride sharing Apps Company do not conscious
waiting time issue then customers day by day not use ride sharing apps. Based on our analysis company
score are given bellow
➢ Uber waiting time rating (4) because of their slogan is to catch customers within 2 minutes. It’s true
when I go to anywhere in Dhaka city. Many times I was go to Khilgaon to Airport, when I call Uber
then within 2 minutes drivers catch to his customers actual pick up point.
➢ Pathao: waiting time rating also (4) but there is no slogan. But this ride sharing apps company drivers
to catch their customers early. And Pathao drivers catch to his customers actual pick up point.
➢ Obhai: waiting time rating (2) because of some times customer to much wait and this ride sharing Apps
Company are not conscious properly waiting time issue. That’s why customers are not used Obhai bike
riders.
➢ Shohoz: waiting time rating (1) because of their drivers quantities are not much. Uber and Pathao bike
drivers too much. That's why Shohoz apps are not used more people.
➢ Our substitute industry (2) here is infinite waiting time because nobody bound to you. Here is your
wish whatever you want at any time come and go. If you go first you will catch the service first. Because
there no service standard for the consumer.
So that we can say waiting time is vary on the service standard provider. Also it depend on consumer
behavior how he used to take the service and how he satisfied with them.
Uber Pathao Obhai Shohoz Sub Indus.
4 4 2 1 2
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3. Survey (17-90262-2)
Page 54 of 87
Total participants: 104
Mode of Survey: Online
Survey was available to the participants from16-OCT-2018to4-NOV-2018
Limitations of the survey:
• The time period is short to conduct this kind of research report.
• The sample size is not sufficient to present the proposed scenario.
• Most of the respondents avoided us because they were not interested to do this survey.
• Many didn’t provide the proper answer what we expect.
Survey Analysis
Question 1: Which transportation mode do you use most frequently for traveling in the city?
❑ This question is asked to finding out how much popularity Uber have.
❑ The expectation before the survey was around 20 to 25 present use UBER as a mode of
transportation.
❑ The actual result is not matching the expected result.
❑ This question answered will be used for suggesting corporate strategy.
Page 55 of 87
❑ Question 2: Do you think ride sharing business can create employment opportunity?
❑ This question is asked to finding out how this sector can play a vital role in employment
opportunity.
❑ Most of the people (10.9+34.7=45.6%) agree with this but 40% are neutral and rest are disagreed
with this.
❑ Before the survey we think this industry can create big employment opportunity in BD but the
actual result is not match with our thinking.
Question 3:Would you like or prefer women rider?
❑ This question is asked to finding out weather people want women rider or not.
❑ Most of the people (34%+37.9% = 71.9%) agree with this but 28% neutral with this.
Page 56 of 87
❑ The expectation before the survey was around 40 to 50 present people want women rider but the
actual result is not matching the expected result.
❑ This question answer will help for suggesting business strategy.
Question 4: Which factor is most important to you when choosing a ride sharing app?
❑ This question is asked to finding out which factor is most important to choosing a ride sharing app.
❑ Most of the people are concern about safety (50% are safety response).
❑ As a customer I also think about the safety and my survey results show me too. In that case my
expectation and the actual results match very smoothly.
❑ This survey will help me to find out the operational strategy.
Question 5: How much you satisfied with the ride sharing app?
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❑ Most of the people are satisfied use in uber ride sharing app 40% up highly recommended 35% are
moderate 10% are low.
❑ 35% people are highly recommended 45% are moderate 8% are low ues the satisfied pathao ride
sharing app
❑ The survey result is very few people are use in satisfied shohoz ride sharing app
❑ people are not interest use to satisfied ohbai ride sharing app that's why low rate of highly
recommended, moderate and low is highest percentages people knock here.
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4. Recommendations
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
Uber bangladesh
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Uber bangladesh

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  • 5. 1 Table of Content 1. Executive Summary 2 2. Analysis 3 a. Environmental analysis 5 b. Industrial analysis 25 c. Industrial life cycle analysis 29 d. EFE matrix 30 e. IFE matrix 36 f. VRIO analysis 40 g. Competitor analysis 41 h. Competitive profile matrix 43 i. Value proposition analysis 46 3. Survey 53 4. Recommendations 58 a. I-E matrix 59 b. Possible recommendations 60 c. Main recommendations and execution strategy 62 5. Conclusion 64 6. Appendices 65 7. References/bibliography 82
  • 6. 2 Executive Summary (17-90262-2) This report prepared based on “Environment, Industry and Company Analysis”. Demographic trends, Socio-cultural influences, Technological Factor, Macroeconomic Impact, Political legal pressures factors, and Global Trade Factors problem UBER faces right now and will be solved in near future. As they expand their business outside the Dhaka city, their income level will increase. Ride-sharing apps like UBER have proven to be cheaper, user-friendly, and above all, convenient, unlike CNGs and taxis. People in Bangladesh accepted the new idea of ride sharing service; as a result, popularity of ride-sharing apps is rapidly increased among city people for last couple of years. By the analysis of IE matrix, UBER is in hold and maintain strategy, that means it can be managed best with hold. Uber will have to follow market penetration and product development strategies. they should now product development in the market for the customer. Ride sharing industry is in growth stage, so rivalry and threats of new entrants is still high. Customers also have strong position regarding choosing service as they have lots of substitution in the market. Upgraded to 4G as well as increasing of Smartphone and internet subscribers allow ride sharing company to expand their business in Bangladesh. In Bangladesh is a political instability is the main threat for company like Uber. We found that Uber have strong software and app in Bangladesh compares to others ride sharing companies like Pathao, Shohoz, apps and this software are not very user friendly, when many people use those rides sharing services then the software not working properly. But the software and app of uber have no problem and customer are highly satisfied with Uber by using their ride sharing app. They do not face this type of problems. Strong software and app is rare right now in Bangladesh because other ride share app is not very user friendly like uber. So, result is Temporary competitive advantage. Uber should also take care about their base fare as their base fare is comparatively high from Pathao. Uber should reduce their price as they have high price comparing to Pathao and shohoz. For this they can either split their service in to premium service and general service, where customer can choose pricing option according to service type, which is also known as service development. On the other hand, they can reduce their base fare and increase Per kilometer fare which may allow them to maintain their competitor’s level of pricing strategy.
  • 8. 4 In this report is based on UBER Bangladesh. It is a ride sharing app service Business. This report at first, we do survey because we want to know the market position of ride sharing app service business in Bangladesh. Based on survey and secondary data we make this report. In this report the first analysis is external Environmental analysis. In environmental analysis we see that the impact of different factors based on industry and company basis. Then we do industrial analysis (porter’s forces). Therefore, IFE and EFE matrix helps us to identify the company strength, weakness, opportunity, and last one is threats that helps us to give recommendation. CPM tells us our competitor position. We do value proposition analysis. We also do competitor analysis. Then we do IE matrix. In this analysis we found that uber is under hold and maintain strategy. At the end we give five possible recommendation and two main recommendation that is fully based on overall analysis. We give five possible recommendation is –Highly depend on manpower, more customer bargaining power, Controversial surge- pricing model, less service offering, highly depend on internet. And two main recommendation is product development and market development.
  • 9. 5 A. Environmental Analysis I. Demographic trends:(17-90255-2) The factors are Employment rate, traffic condition, increase of internet uses, pressure on public transport, Over population of Dhaka city. o Demographic trends 1. Employment rate • Effect on the Industry: Bangladesh is small country surrounded by mostly India and in one side Myanmar. In Bangladesh economic problem is the main issues for country development However, unemployment rate is remarkably low in Bangladesh, only 4.5% in 2010 (Labor Force Survey 2010, BBS). Unemployment rate for 2010 becomes as high as 24.0 percent if underemployment is added to unemployment rate. It is opportunity for riding app industry to getting work force.1 Not only ride sharing has solved the mass problem of finding vehicles, but also the sector created employment opportunities for more than 40,000 people.2 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.3 • Effect on your company directly: Uber with 100,000 driver partners and approximately 2,500 new partner sign-ups per week, Bangladesh is expected to contribute 25% of Uber’s growth in the region in 2019, said a press release.4 Ride-share merely takes up a significant share of the larger transport sector. It is so far just a competitor (occupying an estimated 23% of the market) in the private passenger motor vehicle-hailing services subsector - that is, alongside motor 1 https://bit.ly/2zXvOys 2 https://bit.ly/2Gk9WTp 3https://bit.ly/2yTFOav 4.https://bit.ly/2S5n4NR
  • 10. 6 services like CNG and rental cars that can be privately hired to get around town. In short, ride- share is in its early stages. The sector has barely made a dent in the larger transport sector.5 It is a big opportunity for Uber. As the unemployment is exist in Bangladesh it would not be difficult for uber to getting enough workforce. Prevailing unemployment also help uber to workforce at low salaries or commission whatever. • How might the factor change over the next 5-10 years: It will create new employment opportunity and after 5-10 years later more people came to know about ride sharing app. It will spread out side Dhaka city. o Demographic trends 2. Traffic condition • Effect on the Industry: 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. 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. This condition actually creates opportunity for ride sharing Apps.6 As we see to our day to li life most people use public transportation like local bus. Those buses stop frequently to take passenger and leave passenger that actually consume more and more time. In that sense traffic condition is somewhat in favor of ride share app. • Effect on your company directly: People getting difficulty finding vehicles during pick hours for extreme traffic jam. The question can arise here there is a traffic jam on road but people face difficulty to getting transport, what is the reason for that the answer when one person standing on Framget to pick up bus for going airport but he did not get his desired bus but road is jam packed and his desired bus stack on signal at SHABAGE MORE, that is actually 5 https://bit.ly/2yz0XYa 6 https://bit.ly/2yTFOav
  • 11. 7 • happen in real life situation. So, it is an opportunity for uber to grow business. Make available to passenger. • How might the factor change over the next 5-10 years: As the time passes traffic jam in increase by 15 minutes per signal in Dhaka city. • Demographic trends 3. Increase of internet uses • Effect on the Industry: Ride sharing app is uses through internet. The number of internet users in Bangladesh has crossed the 90 million mark, and most of them access the web on mobile devices, according to the latest figures published by the telecom regulator. Mobile internet user has reached reached 83.141 million at the end of February, 2018.7 That is very optimistic information for industry as a whole. 8 • Effect on your company directly: It is good news for ride sharing app like Uber because through internet car booking is made. • How might the factor change over the next 5-10 years: Hopefully after 5-10 years later 1 GB of internet pack will cost 10-12 tk. o Demographic trends 4. pressure on public transport • Effect on the Industry: Though the country has made good economic progress over the years, urban experts think the capital city still lacks quality bus fleets to match the people's improved lifestyle. They said almost all the existing 8,000 public buses in the city are completely unfit for running in a capital city like Dhaka and those should be replaced with high quality and standard and comfortable ones working out a comprehensive phase-out plan like the one that replaced thousands of two-stroke auto-rickshaws with CNG-run ones in 2003.Noted urban expert and former chairman of the University Grants Commission (UGC) Prof Nazrul Islam, Buet's Accident Research Institute (ARI) director Prof Moazzem Hossain, Buet's Urban and 7 https://bit.ly/2BmBDp5 8 https://bit.ly/2PDQOiL
  • 12. 8 Regional Planning department Prof Dr Sarwar Jahan and urban expert and architect Iqbal Habib came up with the observations while talking to UNB. Prof Nazrul Islam said the buses in the capital must have acceptable standards. "The existing bus services in Dhaka are far below the minimum standard. We must ensure quality and comfortable and passenger- friendly bus services to reduce people's dependence on private vehicles.9 The extreme pressure on public transport actually opportunity for ride sharing app services. Because they will get passenger easily • Effect on your company directly: uber can utilize this opportunity and can make powerful business strategy to grow their business in Dhaka city. • How might the factor change over the next 5-10 years: After 5-10 years people will be more comfortable with uber and other ride shar app because people more use to with app sharing services. Uber will have to compete with new comer app sharing services as well. o Demographic trends 5. High population density in Dhaka city • Effect on the Industry: Dhaka's 14.6 million people live in just 125 square miles (325 square kilometers). At more than 115,000 people per square mile (Figure 1), or 45,000 per square kilometer (Figure 2), the capital of Bangladesh is nearly 75 percent more densely than Hong Kong.10 As right now most people live in urban area it is a opportunity for whole industry. Because ride sharing apps doing their operation in Dhaka only.11 • Effect on your company directly: The high population density in Dhaka city is good opportunity for uber. By utilizing this condition Uber can easily generate revenue. • How might the factor change over the next 5-10 years: After 5 -10 years latter Dhaka” population will be 5 crores. 9 https://bit.ly/2S5Iyda 10 https://bit.ly/2Epwyzb
  • 13. 9 II. Socio-cultural influences: (17-90124-2) The social-cultural factor is also important as the other factor. For Uber socio-cultural factor is more important because its deals with different social factor that influence consumer choices, values, beliefs, and social attitude. In this social factor we collect five factors which is Standard of living, Emphasis on safety and security, Employment Opportunity, Attitude towards customer service quality, Changing Preferences. o SCI Factor 1: Standard of living (17-90124-2) • Effect on the industry: For this ride sharing industry standard of living is very important. The more standard of living will increase the more people will use internet. Now a day’s people of Bangladesh are using heavy internets. Google said the number of active internet users in Bangladesh stands at 4 cores with 35 percent using it every day12. And ride sharing industry is also mobile internet based. So, this industry is growing constantly in Bangladesh. App users in BD have a ranking and within this ranking Pathao 21, shohoz 28, Uber 38.13 Many ride sharing companies are coming and serving people through their ride share service. Different company tries to attract their customer in different way. They share their price and discount through sms and customer can know about that. Customer can choose their favorite ride according to their brand loyalty, price and choice. • Effect on your company directly: It’s a big opportunity for uber. As standard of living increases in Bangladesh, so people are more conscious about their time. They want to save their valuable time at any cost. uber service solve this problem. To book an Uber ride, all you need to do is order through a mobile app. In few minutes you will get the confirmation of your ride. People can easily access from one place to another place by this ride sharing service. You can explore all vehicle options available in your area before confirming your ride. Uber offers several choices to get you to your destination safely and comfortably14 . So, they can easily fulfill customer requirement according to their demand. 12 https://bit.ly/2POJmC8 13 https://bit.ly/2CZJU5v 14 https://ubr.to/2Jcy4VT
  • 14. 10 • How might the factor change over the next 5-10 years: After 5-10 year people will discourage to buy a privet car because they can easily get any ride sharing app at any time. They don’t need to spend money on driver salary and garage. o SCI factor 2: Emphasis on safety and security (17-90124-2) • Effect on the Industry: In ride sharing industry safety and security is very important. For every ride share customer are concerns about safety issue. That’s why for every ride sharing company customer has to create an account. For which they have to provide all of their personal information like mobile number, nid number or driving license, vehicle tax token, certificate of fitness, insurance along with required document of the vehicles. Now for customer safety wearing helmet is necessary when riding motorbike. All of the companies have to ensure this. • Effect on your company directly: Uber are very much conscious about their customer safety. Uber ensure the entire necessary step what can ensure about customer safety and security. Now a day’s Uber is providing helmet for their customer. After service uber also take passenger feedback about ride and driver. All of this only for ensures customer safety. • How might the factor change over the next 5-10 years: Now only ride sharing company knows about drivers and passenger information. But after 5-10 years police can also get all of the information about drivers and passengers. This will ensure more safety for passengers. o SCI factor 3: Employment Opportunity (17-90124-2) • Effect on the Industry: Ride sharing service opened opportunities to unemployed people. And it also offered options to employees who wish to have extra income. Ride sharing service gives chance to those people who cannot have secure job but has a working knowledge of driving a vehicle. An estimated 40,000 drivers/riders under the ride-sharing network implies the job creation potential of this sector15 . In our country there have many ride sharing service. Many people working on there and make their own employment. Ride sharing businesses also create a big opportunity for local automobile industry. Motorbike sales soared nearly 50% year-on-year to 3.60 lakh units in 2017 thanks to a huge cut in supplementary duty on 15 https://bit.ly/2yTFOav
  • 15. 11 import of the two-wheeler's components. In 2015, only 1.43 lakh units of motorcycles were sold. The soaring sale of motorcycle provides impetus for young people to own a bike and have an additional income by getting incorporate in ride-sharing network16 . • Effect on your company directly: Uber 1st comes in our country with this service and make this opportunity for the unemployed people. Now people can buy their own car and earn money by uber. Uber offers different bonus for their rider. A research shows that until November 2017 10000 active uber cars were operating in Dhaka and 2 lakh people took trip in November’1717 . • How might the factor change over the next 5-10 years:After 5-10 year there will be no rent- a-car business. People will buy their own car and make their own employment. o SCI Factor 4: Attitude towards customer service quality (17-90124-2) • Effect on the Industry: In Bangladesh the entire ride sharing Service Company tries to gives better quality and service. Company knows that better quality and service can satisfy customer. Customer does not need to bargain with service provider. Customer gets all of the information about ride fare from the app which customer can compare with one another. • Effect on your company directly: Uber has best customer care facility in Bangladesh. They try to solve customer problem as soon as possible. They always trained their rider for providing better service to their customer. Uber arranged different seminar and training program for their rider. And for better service and quality they try to get their customer feedback through their app by rate drivers and the ride itself. In this way uber Bangladesh continuously improve them self. • How might the factor change over the next 5-10 years: After 5 to 10 years I think they can provide offline service. Because most of the people in our country still don’t use internet. Then they can capture that market segment. 16 https://bit.ly/2yTFOav 17 https://bit.ly/2yTFOav
  • 16. 12 o SCI Factor 5: Changing Preferences (17-90124-2) • Effect on the Industry: A major socio-cultural factor is changing consumer preferences. What was popular and fashionable 20 years ago may not be popular today or 10 years down the road. In before people have to rent a car or hire cng for their travel. But now this trend has been changed. Ride sharing service takes this opportunity and change customer preference. People are increasingly choosing services like Uber, Pathao and Obhai over CNGs and taxis. Although the car-renting services believe their business system is yet untouched from the trend’s disruptive nature, the CNG workers union upheld strikes during the months of November &December 2016. Uber, Pathao, Obhai altogether log in 10,000 rides a day18 .They already set a transportation platform in consumer mind. • Effect on your company directly: Uber first comes in Bangladesh with ride sharing idea. It changes customer preference in a very short time. Uber changes traditional transportation idea from consumer mind and set a new concept about ride sharing idea. It links car rider with passenger. It has been a week that Uber launched its services and user feedback has been overwhelmingly positive. With fares roughly 20 – 25 percent higher than CNG auto- rickshaws and fast response times coupled with comfortable vehicles and well-mannered drivers, it is set to revolutionize the way people travel in this city19 . • How might the factor change over the next 5-10 years: After 5 to 10 years ride sharing service model will be applied in other business sector. III. Technological Factor: (17-90183-2) Technological factor of is very much important as well as other factors & for uber this factor is most important because Uber is mostly depend upon technology. In technological factor we collect 18 https://bit.ly/2CuGBlK 19 https://bit.ly/2EDrBEW
  • 17. 13 five factors which is internet connectiveness, spread through social media, dynamic pricing, location sharing & driving directions o Technological Factor 1: Internet Connectiveness (17-90183-2) • Effect on the Industry: The ride sharing app industry dependent on internet connectiveness. According to statistics published on the Bangladesh Telecommunication Regulatory Commission (BTRC)'s website , the number of the country's total internet users is now 90.05 million, of the total users, 80.47 million are mobile phone internet users, 570,000 are broadband internet (ISP + PSTN) users, and the rest 83,000 are WiMaxusers.The total number of internet subscribers reached 80.89 million at the end of July.20 Without internet connection ride sharing industry do not able to run their business. • Effect on company directly: Due to good internet connection & increasing internet user people attract more on Uber. And so Uber gives better & fast service than another ride sharing app. • How might the factor change over the next 5-10 years: In future UBER app become more easy, flexible and also give better service to their customer with the help of increasing internet user & fast internet. o Technological Factor 2: Mobile Marketing (17-90183-2) • Effect on the Industry: Ride sharing app industry mostly do their marketing & promotion through mobile. They send text messages & sometimes call their customer for as a marketing strategy. They also spread their service through social media like:facebook, twitter , instagram .Statistics of Bangladesh’s digital and social marketing growth in 2018 shows that there are over 30 million active social media users in Bangladesh ,the mobile connections are at 83% (137.2 million) , 28 million active users on social media, access it through their phone , the total number of active mobile internet users as of now is 76.22 Million , there has been over 27% increase in internet users since January 2017&an increase of 15% active 20 https://www.dhakatribune.com/technology/2018/09/21/btrc-90-05-million-internet-users-in-bangladesh
  • 18. 14 social media users since January 2017.21 So social media that helps the industry to spread their business like wildfire. • Effect on company directly: Mostly people share their riding experience, review, stories through social media like Facebook groups or pages, twitter, Instagrametc.that attracts other people using Uber. • How might the factor change over the next 5-10 years: In future social media might help to share more stories & incidents that encourage new users to do same. o Technological Factor 3: Dynamic Pricing (17-90183-2) • Effect on the Industry: Dynamic pricing means charges on the basis of the demand aroused, weather conditions for the service to be carried out, traffic conditions of the service, and the number of stops to be made during the complete journey.22 Ride sharing app industry is now more popular because of its dynamic pricing that automatically counted based on various subject that change over time. • Effect on company directly: Uber fares are always dynamically priced than other ride sharing app & local vehicles. Its fare is counted based on time , distance etc. For this reason, Uber has created more value to the customer & give a positive sign than other competitors. • How might the factor change over the next 5-10 years: In future ride sharing industry offer more dynamic price so that customer use more than local transportation. o Technological Factor 4: Location Sharing (17-90183-2) • Effect on the Industry: Ride sharing app is mainly location-based app. People are feeling more secure using ride sharing app. • Effect on company directly: Location tracking process of Uber app is more secure than other competitors. Customer can also share their location with their secured contact. Because of this reason Uber is more popular than other ride sharing app. • How might the factor change over the next 5-10 years: In future Uber app become more secure & might give live location tracking to its riders &customers. 21 https://www.soravjain.com/digital-marketing-and-social-media-marketing-stats-and-facts-of-bangladesh 22 https://medium.com/troo-blog/comprehensive-swot-analysis-of-uber-as-powerful-business-15e3cbee95a4
  • 19. 15 o Technological Factor 5: Driving Directions (17-90183-2) • Effect on the Industry: The ride sharing app industry provide driving directions which is also known as GPS to its drivers. This feature helps the drivers to reach towards their customer destination easily. • Effect on company directly: By providing driving directions Uber able to give their 23 drivers to pick up customers & also reach their destination easily. • How might the factor change over the next 5-10 years: In future this app makes directions more accurate by using Maps app & also other mapping software available on users’ device. IV. Macroeconomic Impact: (17-90262-2) Economic factors include exchange rates, changes in interest rate, economic growth, inflation rate, market trends, tax law, consumer confidence. These factors enormously influence how organizations work and decide. For example, interest rates influence a firm's cost of capital and thusly to what degree a business develops and grows. o Factor 1: Exchange Rate (17-90262-2) • Industry Impact: In Bangladesh exchange rate is not stable. It always fluctuates. And in Bangladesh we do not make cars, we import all of them. So, government can put tax on those easily. Normally, the import VAT is 15%, 25% import duty on 1.5L engine and ,100% import duty fee up to 2L, then 200% and beyond depending on size of engine. Additional taxes apply: Supplementary Duty (SD) (100% CIFD), Regulatory Duty (RD) (4% (CIFD + Supplementary Duty (SD))), AIT (Advance Income Tax) (5% CIFD).24 When the exchange rate decreases then the price of the car decreases and vies versa. So, it has remarkable impact on the industry and purchasing behavior of people. People feels to purchase car for Uber service when the price is lower. • Company Impact: Due to exchange rate if the price falls Uber transport authority should take initiative of purchasing cars or encourage people to buy and get registered with Uber. 24 https://bit.ly/2QdaJtK
  • 20. 16 • Future Trend: From the near past we can analyze that the exchange rate is always changing and currently it is downward for Bangladesh. So, after 5 year from now people will prefer online app service more than buying personal transports when needed. o Factor 2: Economy growth (17-90262-2) • Industry Impact: GDP growth in fiscal 2017-18 is likely to be 7.65 percent, up from 7.28 percent a year earlier, as per the estimate of the Bangladesh Bureau of Statistics.25 So, it’s means that our economy is improving day by day so that the improvement of our life style will also have a massive change. We can spend a little more to have a fast and smooth mobility which UBER is currently providing us. More user can affect a good number of rides so that both user and company will get benefited. People are more eager to buy car and join in uber which increase the number of driver end and also people are getting available ride which increase the customer end which creating a good impact. • Company Impact: When total economy is good people are willing to spend more for the services like UBER. Good economic growth is a good sign for this kind of company because the investment will be high and the customers are willing to pay for this ride sharing service. • Future Trend: In Bangladesh the economic growth is increasing day by day so, for this kind of service will be blessing for people. Thinking about the quality and comfort people are willing to pay a bit more or less for transportation. Not only in capital area now a days UBER service is moving on outside of Dhaka and its only possible by the increasing level of demand. So, we can say that after 5-10-year UBER will be the first priority when people think about to move outside of their place. o Factor 3: Changes in interest rate (17-90262-2) • Industry Impact: The benchmark interest rate in Bangladesh was last recorded at 6 percent. Interest Rate in Bangladesh averaged 7.09 percent from 2008 until 2018, reaching an all- time high of 8.75 percent in September of 2008 and a record low of 4.50 percent in October 25 https://bit.ly/2SqKyfR
  • 21. 17 of 2009.26 It’s means that interest rates are always fluctuate. Customers feel their effect in the case of making a purchase on credit or buying a car. On the off chance that the interest rate is low individuals purchase new car for online transportation business. Then, online transport service will be better. • Company Impact: On the off chance that interest rate is low Uber will take loan form bank for investing in business. And they will purchase another car for the organization. • Future Trend: I figure government will decreases the interest rate for online base transports service business and new company will motivate from the government to do the business. Our nation vision is, we will completely digital with in 2021. That is the reason we think interest rate will change. So, after 5-10 year we think uber will do well in this market. o Factor 4: inflation rate (17-90262-2) • Industry Impact: In economics, inflation is a maintained increment in the general price level of products and ventures in an economy over some undefined time frame. At the point when an inflation rate is high then also aggregate transportation service cost will be high. • Company Impact: If the inflation rate going high. At that point, Uber will also increase their service price. And that is not good for the company. • Future Trend: On the off chance that the inflation rate going high day by day then online transports service cost will also high. But we think the inflation rate will low after 5-10 year, and all the newer organization will start the business like Uber. o Factor 5: consumer confidence (17-90262-2) • Industry Impact: Consumers are will to spend in the online services since this service is quicker than the other transport services and cost saving also. For their services their customers will increase day by day. • Company Impact: UBER is come up with a world class technology based ride sharing app which is developed in Silicon Valley. The errorless app is working so smoothly and user friendly that anyone can use it very easily. Also, uber add some value like safety, security and comfort which attract more customers. So, if a customer will get this kind of service at one click of an app then day by day the number of customers will increase and the company will get more profited by acquiring more customers. 26 https://bit.ly/2BQBhIR
  • 22. 18 • Future Trend: For Student, Service holder, businessman and other professional people the most important is mobility. Currently the most problemist thing is transportation and UBER is playing the vital role in the scenario. Day by day we are move forward to technology so people are more likely to use UBER for their mobility. The ratio of UBER user is growing day by day because of people can move anywhere very fast, Smoothly and with a low cost. So, we can say that after 5-10 years more people are engaging with this kind of ride sharing service and it will bring a revolutionary change in our life. And that’s how uber can benefited in future. V. Political – legal pressures factors :(17-90123-2) Uber has ignited changed political debates globally. Several governments are concerned over the regulation of the sharing economy27 . Uber rise has had a disruptive effect on the business of the other traditional taxi services. Uber has been banned in a number of countries and such as Bulgaria, Hong Kong and Germany and certain cities such as London and Brno. In Bangladesh, soon after the launch, the Bangladesh road transport Authority said the ride sharing service of uber was in violation of the country’s motor vehicle regulations. In the notice the BRTA said taxi services in Bangladesh are regulated under the taxicab service “Guideline 2010” and prospective companies must seek approval from the BRTA, vehicles that are rented on run on fare are registered in a series different from other vehicles. Basically, uber is not a taxi company: rather it is a tech company. To incorporate uber’s business model some countries have already adopted guidelines for ride sharing services, with many countries in the pipeline to do so. o PLP Factor 1: Government stability: Government can create a good impact on ride sharing service business. If there is no strike, no hampering on vehicles, as a result ride sharing services industry grow up day by day. • Effect on the industry: when Government stability present in a country. As a result, this business is run smoothly. Companies can offer and serve services more freely and customers take the services more frequently. 27 https://bit.ly/2q2dizm
  • 23. 19 • Effect on the company: If government create smooth situation, uber has been able to create good brand image in Bangladesh, as a result more customer has attracted to take these services. • How might the factor change over the next 5-10 years: Government stability helped this industry. I think, when government maintain stability situation in country ride sharing industry will made a big role in economy and public transportation and create new services for the customer. o PLP Factor 2: Safety Rules and regulations: If Government ensures both employee and customer safety, security, and create good environment including cars condition. As a result, people are more attractive in this industry. • Effect on the Industry: proper safety rules and regulation create willingness to customer join in the ride sharing services. This is secured workplace and service business because of ensuring the highest safety. • Effect on the company: If safety rules and regulation perfect in this business, as a result employee of uber treated well to the customer and become more productive and dedicated. Customer also feel safe to using ride sharing services business. They trust this company. • How might the factor change over the next 5-10 years: In future more safety will be include like cc camera in the car, as a result no occurrence can create in service time. And also include new technologies for more safety to ride sharing service business. o PLP factor 3: Educational law and regulations: • Effect on the Industry: hen drivers have minimum qualification and for the reason this industry is becoming more standard. Ride sharing app industry is very much popular because of the literacy scale of drivers. They are at least capable of operating internet.
  • 24. 20 • Effect on the company: When all drivers and staffs are educated, as a result the company always giving best services to the customer and also customer more attractive to this company and using more. • How might the factor change over the next 5- 10 years: In future i think many car owners will give their car at least HSC, and graduates person. Higher educated person will be encouraged to do job in the administrative level of this ride sharing service business. o PLP Factor 4: Fare policy and wages rules: • Effect on the Industry: If fare policy easier for the customer &Drivers and all staffs get minimum wages, as a result this industry grows up day by day in Bangladesh. • Effect on the company: when fare is reasonable, customer always take ride sharing services, on the other side if company staffs get minimum wages including drivers. As a result more educated people interested to join this company. • How might the factor change over the next 5- 10 years: In Future uber Bangladesh take different fare payment policy, like-mobile banking payment system and also create strong rules for the drivers & all staffs to get maximum wages. o PLP Factor 5: Government Tax and Insurance law & corruption level: Government should maintain minimum tax rate, not higher tax. And maintain drivers & customer insurance also maintain corruption in that business. • Effect on the Industry: when government tax rate minimum then rides sharing service industry grow up rapidly. • Effect on the business: when corruption level low, business will be doing well day by day. • How might the factor change over the next 5-10 years: In future uber Bangladesh has been start customer insurance, as a result people are more attractive to using this ride sharing service business. Global Trade Factors :(17-90142-2)
  • 25. 21 Uber globally successful ride sharing app right now. Uber may have the most dynamic to benefit riders and drivers across the 60 countries and 400 cities worldwide and growing month by month. Uber is successful in USA and Europe. Uber didn’t better feedback from china.Uber is focused on building its business, which is what has made the brand so globally that it has become, like Google, a verb as well as a noun. Discusses the given below five factors of global trade perspective of uber. o 1. Expansion and employment Factor: Trice the app is only useful to those who have smart phones. Right now technology so much update. Young generation use in smart phone also use in uber app. This way to uber expansion and employment also earn the money used the uber ride sharing app in world wide. • Effect on the industry: Right now, uber doing the business world over the world Uber industry ride sharing app use the worldwide. Day by day industry is so much expanded by uber. Few countries established the uber station its help for the uber industry customer. People are more interest to use the uber ride sharing app because of this kind of industry opportunity provide to the customer. So, industry so much strong than others. Uber expanded the business and build our industry. • Effect of the company: Uber is ride sharing app business Company. Uber is a marketplace that matches riders with drivers, the company is constantly adding to the 1.1 million active drivers on its platform to keep up with demand. While driver complaints about the downsides of the freelance model, including the lack of benefits, has led to the launch of new startups focused on making drivers happy, Uber advertises the flexibility the platform gives drivers to be their own bosses. Recent uber work in Africa including Dar es Salaam, Tanzania; Accra, Ghana; and Kampala, Uganda. Uber's ambition is to be everywhere. • Future trend: Uber use in smart ride sharing app. it’s better than others ride sharing apps.Given the better feature. While the global taxi industry is male dominated, the technology behind Uber minimizes some of the safety concerns that can be a barrier to entry for women. Before accepting a ride, Uber riders have a digital trail including trips tracked by GPS. Uber is drilling into its data to understand the differences between male and female driver behavior,i
  • 26. 22 o 2. Global Market Factor: Uber dominate the global market. Day by day uber expanded the business all around the world. Uber is better position in usa market and Europe market. During few years uber dominate in sub continent country. • Effect the industry: Uber doing the better position in usa. Uber and lyft the most popular two ride sharing app in usa. Uber is maximum market dominate in usa rest of the markrt are lyft and etc. Same thing are Europe and india also Bangladesh uber doing the business very well. Overall uber globally capture the market. New technology come to the market those one is uber ride sharing app it helps to our industry and our daily life. Taxi cap and bike share app uber start for our industry. It is blessing for our new generation. • Effect the company: uber always try to start something new. Add some features to public transport systems will require more action from governments and entrepreneurs to innovate; measure societal impacts; and tackle policy, market, and cultural barriers. • Future trend: Uber will be start female bike ride share app. It is innovating thinking for our global market. ii o 3. Resources Factor: Network and technology both are important for this business. Because both is relevant with uber business. This question of global vs. local market in ride-hailing is also a significant factor in considering how established brand and reputation could be a source of competitive advantage for Uber. • Effect of the industry: This industry depends on technology. So, technology is the main resources for the business. When we get the profit from the industry, we have to need update our global network and technology. • Effect the company: when doing the business international trade company will be expanded. The main resource is network and technology when both are updated also company will be improving. • Future trend: Creating some smart app for the future. And developing the current resource. It developed its technology and splashed cash to establish a foothold in new markets. In the future, its growth strategy could be more nuanced.iii
  • 27. 23 o 4. Location Factor: The transportation is convenient good for development of international trade. Uber come into the market transportation service for customer. People easy to move one way to others by uber transport service. • Effect the industry: The most important factor is the city.Uber is the darling of the sharing economy. The term Uberfication is applied to any industry or product that acts as a liaison between users and the trend is growing. • Effect the company: Uber's quick success proves that it was a much needed service in the U.S. transportation market. By using the Uber app, customers can quickly get a taxi to their exact location and conveniently pay for the ride. • Future trend: Uber was a much needed shake to the taxi industry. In a world where taxis can be messy, late and expensive, and where no incentives exist for drivers to take efficient routes, Uber showed consumers what taxi service could be like.iv o 5. Sustainable Factor: Uber try to sustainable in the global market. This is competitor market so many ride sharing app run the business all over the world. Every company tries to give the better feature for the customer. • Effect the industry: Every business has an up and down. Uber is same thing here. Sometime uber industry is good some time bad. As like that USA and Europe uber industry is so good on the other hand china market is not so good. • Effect the company: Every company try to business in long run in the market. How to sustain in the market this is question. They have to need proper branding, good image, provide the quality product. Otherwise any time drop out from the market. • Future Trend: sustainable and future trend both is relevant. Company thinking about that how to sustainable in future. We should be proper guideline to change the technology. I think follow this step company will be improving. As a Bangladeshi perspective uber car app is better than others ride sharing app.
  • 28. 24 B. Industrial Analysis (Porter’s Forces) (17-90262-2) We choose UBER from “Ride Sharing Industry” which is actually providing apps based online transport service. It means that our service provides through internet without internet passenger cannot get our service. Our immediate or main competitors are pathao, shohoz, toma, amarbike, taxiwala, cholo, obhai, pickme. But public transportation like bus, rickshaw, CNG, leguna etc is excluded from this Industry. Because those public transport services are not providing online transportation or anywhere pick up service. The CNG auto-rickshaws and taxis have enjoyed a monopoly for years. As we see, People in Bangladesh accepted the new idea of ride sharing service. The rapid popularity of ride-sharing apps proved it and has effectively thrown the outdated industry off-balance. A person wants a comfortable & quick journey are always looking for ride sharing apps like Uber, but public transport in Bangladesh rarely meet their demand.
  • 29. 25 In the following sections, we will be talking about our findings of each of the forces under Porter’s Industry Analysis in details, providing justifications for our selected level of impact (Strong/Moderate/Week) for each of the forces. Please see Table 1B1 for our summarization of the industry analysis. In the following sections, we will be talking about our findings of each of the forces under Porter’s Industry Analysis in details, providing justifications for our selected level of impact (Strong/Moderate/Week) for each of the forces. I. Rivalry among competing firms:(17-90262-2) Based on our analysis rivalry among competing firms is strong. Number of competitors in the market: Number of competitorsin this app base industry has many competitors like pathao, obhai, shozah, toma, amarbike, taxiwala, cholo, goti-lets go, pickme, ezzyr. They are alsoin this app industry with similar services. So, number of competitors is high. Price competition: In this industry price competition is high cause we found through our survey that almost 90%customers strongly agree/agree if they offered better price or low price from other, they switch to a different ride sharing app. Product/service differentiation: In this app industry have no service differentiation. In this way, rivalry is high. Availability of substitute:In this app industry availability of substitute is high. Since traveler have more choice to get sameservice in substitute transportations industry like bus, CNG, leguna, etc. and thecost are also less expensive. II. Bargaining Power of Suppliers :( 17-90262-2) Based on our analysis bargaining power of supplier is strong. Uber follows outsourcing strategy. Uber owns no vehicles or employs drivers. The company argues all drivers have their own cars, self-employed, and work with Uber on a contractual basis. Car owners, motorcycle owners are the supplier of Uber. As a result, owners get freedom to choose the others organizations apps like pathao to get a ride when they didn’t get any ride request from Uber. So here suppliers of Uber have a high bargaining power.
  • 30. 26 But Uber have no other choice to take of the suppliers that it is outsourcing although if anything bad happens, it directly affects Uber’s name and its brand image. III. Bargaining power of buyer:(17-90262-2) Based on our analysis bargaining power of buyer is strong. Switching cost: In this industry customer switching cost is low. The following table shows the fare of different such service providers. Name of the App Base Fare per km Uber Moto Uber Car Tk.30 + Tk.12/km Tk.40+Tk.3/minute+Tk.18/km Pathao Ride Pathao Car Tk.25+Tk.12/km Tk.50+Tk.2.5/minute+Tk.20/km Shohoz bike Tk.30 + Tk.12/km So, it is seen that the faring policy is almost similar to each other. Moreover, lots of customer depends on the discounts and promo codes. So, they can easily switch to other service providers if they are not happy or if the service is not satisfactory to them. As a result, the bargaining power of buyer is high. Informed about seller product, price, place, promotion: In this industry customer have right to comment for their service. And also, in the ride sharing app industry it has sms feature and customer help line by which the rider or the user can easily communicate with the support canter for their service. And also, rider or customer communicate through Facebook because all the ride sharing app have a page and, in this page, customer share their any comments that are related to service. All people know about service that is good or bad and every company know that what kind of things they need to improve. So, customers have more power. IV. Threats of new entrains :( 17-90262-2) Based on our analysis threat of new entrains is moderate.
  • 31. 27 Easy to imitate: This service or business model on which the industry is operating at the moment is not take lot cost to build and is not costly to imitate. Because their service app, ride share and pick up point to destination are not hard to copy. So, it means that threats of new enters is high. Govt. Restriction: Govt. has a restriction in this industry. Cabinet Secretary Shafiul said the companies will not have to share their revenue with the government, but the one-year term enlistment certificate will cost Tk 100,000 with an annual renewal fee of Tk 10,000.28 Now ride sharing app have to maintain 11 rules that provide by govt.29 so entry barrier is high. Product differentiation: Within ride sharing app industry have no product differentiation because other competitors such as Shohoz, pickme, obhai giving the same service but only pathao has product differentiation because they also provide food and parcel delivery service through their app. It is not sufficient in this industry. So, it means product differentiation are low and therefore threat of new enters is high. Common technology: All company use same technology in this app industry. They provide their service in same way they have no differentiation (safety and security, use internet, need smart phone, ride sharing with face book or friends). So, company easily enters into the new market that’s why entry barriers are low. Strong brand and customer loyalty: In this app industry have no strong brand or customer loyalty. Customer uses all service which service is available. But compare with UBER, now Pathao is the almost similar establish app service in this industry but it does not have brand loyal in the customer mind because customer use another app service based on variation, price, discount and service. For this reason, new company easily come in this industry. So, threats of new enter is low. In this app industry brand and customer loyalty are low because it is new concept of public transportation. So, threat of entry barrier is low which means threat of new entrants is high. V. Threats of substitute product :(17-90262-2) Based on our analysis threat of substitute products is strong In our app industry substitute products are road transportation like bus, rickshaw, CNG, leguna, easy bike etc. In these industry threats of substitute products are high because people easily get bus, rickshaw, 28 https://bit.ly/2A8zY5N 29 https://bit.ly/2TvLLnM
  • 32. 28 CNG, leguna therefore people no need to smart phone or internet. Switching cost is less expensive than app transportations service. At present our industry services are limited and it cannot go outside of Dhaka that’s why passenger cannot use app service for long distance but substitute’s service bus and CNG they go outside form Dhaka. Upcoming metro railway service will be considered as the big threat of substitution. The shifting cost in the market for substitute service is also low, so customer may go forsubstitutionanytime. Therefore, threat of substitute product isstrong. C. Industry Life Cycle Analysis (17-90262-2) Industry Life Cycle Analysis
  • 33. 29 From this graph we can see that our industry falls under green marked growth stages. That mean we are in the growing situation and attracted the customers by delivering good services. Customers already know about us and they have already accepted us in the market place. As we are in the ride sharing app industry everyone knows that how much responses we have received from the customers. This is the era of new technology and fastest service, and consumers taste have been changed, they desire the innovation. And ride sharing app industry has shown their innovation by using the fastest technology and introduced them in the marketplace as a leader. As we are saying that we are already in the growth stage that means we are in a good shape but we have to face some challenges also. According to the Product life cycle stage we know that from the growth strategy it becomes tough for a particular industry to survive because of the competition. Once we will reach in the maturity stage then we will have to struggle only because of survival not for going in the declining stage. So, to maintain those ups and downs ride sharing app industry should focus on their opportunities and avoid those threats. As a company UBER falls under the ride sharing app industry facing the growth stages. We know numbers of online app users are increasing, keeping this in minds we need to go ahead to deliver our service which is a great source for doing our business. Moreover, for this reason targets market will be increased and we can do our business really good by fulfilling the increased target market’s demand. Nowadays imitation is really very easy so we have to make sure that no one can harm us when similar companies with similar services will enter into this industry. That means knowing the threat we have to tackle this carefully for our betterment and enjoy this growth stage. D. EFE Matrix (17-90255-2) In the following analysis we have identified key external factors (opportunities/threats) that are present based on our PEST, Porter’s Industry analysis and our primary research. See Table 1C1 in the appendix External Factor Evaluation (EFE) Matrix is a strategy tool used to evaluated firm (Uber) external environment and to reveal its opportunity as well as threats. In the following analysis we have identified key External factors (opportunity/threat) that are present based on our primary and secondary research. See Table 1C1 in the appendix section for a summarization of our EFE analysis through the EFE Matrix.
  • 34. 30 opportunities The reason behind opportunity 1 to 4 is given equal weight and rating because Increasing trend of internet user, Rapid acceptance from customer, Availability of getting workforce, Economic growth in Bangladesh this are the opportunities that help Uber to generate sustainable profit if Uber carefully utilize those. The reason behind opportunity 5 to 8 is given equal weight and rating because Changing Preferences of people, currently low interest rate, Government policy right now this are the opportunity that actually helps to run business smoothly. If Uber utilize this opportunity properly defiantly it can catch customer attention. Opportunity 1: Increasing trend of internet user Ride sharing App industry is highly depends on internet that’s way weight .10 is given. The data as follows The total number of Internet Subscribers has reached 91.194 Million at the end of September, 2018. The Internet subscribers are shown below: OPERATOR SUBSCRIBER (Million) Mobile Internet 85.381 WiMAX 0.080 ISP + PSTN 5.734 Total 91.194 30 So here the company response of company is superior that is way rating 4 is given. So weighted score is .40 Opportunity 2: Rapid acceptance from customer 30 https://bit.ly/2QUvfPs
  • 35. 31 Ride sharing app now get acceptance from customer rapidly that is why weight .10 is given. According to our survey use of own vehicle is 14.6 present, y bus or cng is 47.6 percent, 36.9 percent people are using ride sharing app. We assumed 36.9 percent is rapid acceptance, because ride share app introduced in Bangladesh at December 2016.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 only 10,000 in January.31 Here we thought company response is superior that is why rating 4 is given. Opportunity 3: Availability of getting workforce Unemployment rate is remarkably low in Bangladesh, only 4.5% in 2010 (Labor Force Survey 2010, BBS). Unemployment rate for 2010 becomes as high as 24.0 percent if underemployment is added to unemployment rate. It is opportunity for riding app industry to getting work force.32 The ride sharing space in Bangladesh gained immense acceptance and popularity. Not only ride sharing has solved the mass problem of finding vehicles, but also the sector created employment opportunities for more than 40,000 people.33 So availability of getting workforce is plus point for Uber.Considering all of those we give weight .10 and we assume that where uber response is superior so rating is 4. So weighted score is .40 Opportunity 4: Economic growth in Bangladesh Per capita income rises to $1,751, according to Bangladesh Bureau of Statistics Bangladesh has achieved the highest-ever 7.86% GDP growth in the 2017-18 fiscal year, widely surpassing the estimated growth of 7.65%. The per capita income has increased to $1,751 in FY2017-18 from $1,610 in the previous fiscal year, according to Bangladesh Bureau of Statistics (BBS). The final figure of the country’s economic growth was placed at the meeting of the Executive Committee of the National Economic Council (Ecnec) held in the council’s conference room on Tuesday, reported UNB. The ride sharing industry utilizes this condition properly. So, we give weight .10 of this. In the rating we give 4 because as uber response as mentioned above. we see uber offerings is fit to average income people. so, the weighed score is .40. we assume that here uber response is superior. When country in economic growth condition that means people of the country have enough money in hand. When people have enough money in hand, they also Spend money as they feel when necessary. So, Uber can see this as an opportunity Opportunity 5: Changing Preferences of people 31 https://bit.ly/2yTFOav 32 https://bit.ly/2Gk9WTp
  • 36. 32 A major socio-cultural factor is changing consumer preferences. What was popular and fashionable 20 years ago may not be popular today or 10 years down the road. In before people have to rent a car or hire cng for their travel. But now this trend has been changed. Ride sharing service takes this opportunity and change customer preference. People are increasingly choosing services like Uber, Pathao and Obhai over CNGs and taxis. Although the car-renting services believe their business system is yet untouched from the trend’s disruptive nature, the CNG workers union upheld strikes during the months of November & December 2016. Uber, Pathao, Obhai altogether log in 10,000 rides a day. They already set a transportation platform in consumer mind34 .Considering all of those condition we give weight 0.05 and rating 3. For rating we consider uber verity in product offering, because people of Bangladesh different types of income level to comply with changing preferences of people Uber need verity in product offerings. Here weighted score is 0.15. Opportunity 6: Currently low interest rate Both public and private banks have decided to lower lending rates to single digits from July 1 -- a move that comes weeks after the government showered them with a raft of privileges, drawing criticism from different quarters. There will also be a cap on the deposit rates so that those remain in tune with the lending rates. Private Banks have set the deposit rates at 6 percent while the public ones are yet to decide on it. Lauding the decisions made at two separate meetings yesterday, Finance Minister AMA Muhith said this would help boost investment. A number of economists have also welcomed the move but cast doubts on its implementation. They also pointed out that the cut in deposit rates will affect savers.The finance minister, at a meeting at his secretariat office, directed the chief executives of state-owned banks to keep the lending rates below 10 percent.35 Considering all of those conditions we give weight and rating consecutively 0.05 and 3 and the weighted score is .15. Opportunity 7: Government policy right now the government policy regarding ride sharing industry is favorable now because Government impost new role that one freelancer car owner can attest to only one ride sharing app, considering this we give weight and rating consecutively 0.03 and 3 and the weighted score is .15 34 https://bit.ly/2CuGBlK 35 https://bit.ly/2RVZ4MV
  • 37. 33 Opportunity 8: Increasing per capita income of Bangladeshi people In 2018, per-capita income was estimated as per IMF data at US$4,561 (PPP) and US$1,754 (Nominal). It is opportunity for both ride app and uber both Bangladesh now close to mid-income status.so we decide weight and rating consecutively 0.05 and 3 would be appropriate and the weighted score is 0.15. Threats Threat 1: Political unrest can cause damage The Dhaka University professor emeritus said he saw no sign of tolerance in the ruling Awami League and the BNP, which sits out of parliament after the boycott of the 2014 polls for the demand for a neutral election-time government. The BNP is pressing for the same demand again this time. It says it will not take part in the next election with Sheikh Hasina as prime minister while the Awami League is firm on its position that it will remain in power during the polls in line with the Constitution. “Conflict will take place naturally when the two rivals show no sign of tolerance,” Prof Serajulsaid. He also fears that such differences of opinion between the two major parties will hinder Bangladesh’s progress on all fronts. Aeyes are on politics while figuring out how the next year will be like36 , as everything else in a state circles around politics previously also in Bangladesh political unrest happen unrest happen and the rogue person during those time cause damage of car and buses and other transportation vehicles. Considering those condition weight and rating consecutively .10 and 1 and the weighted score is 0.10. Threat 2 number of competitors Uber competitors are Pathao, Obhai, Shohoz and other ride share apps those competitors actually creates options to passenger it is big threat for Uber. So, considering this condition we decide weight and rating is .10 and 1 and the weighted score is .10. Threat 3 Fuel cost may increase for global unrest The factors driving up the price of oil is OPEC, or the Organization of Petroleum Exporting Countries, is the main influencer of fluctuations in oil prices. OPEC is a consortium made up of 14 countries: Algeria, Angola, Ecuador, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela. OPEC controls 40% of the world's supply of oil. The consortium sets production levels to meet global demand and can influence the price of oil and gas by increasing or 36 https://bdnews24.com/bangladesh/2018/01/01/bangladesh-begins-2018-amid-fears-of-political-volatility- ahead-of-general-elections
  • 38. 34 decreasing production. OPEC vowed to keep the price of oil above $100 a barrel for the foreseeable future, but in mid-2014, the price of oil began to tumble. It fell from a peak of above $100 a barrel to below $50 a barrel. OPEC was the major cause of cheap oil, as it refused to cut oil production, leading to the tumble in prices.37 Uber may incur loss. So, considering those condition weight and rating we decide .10 and 1 and weighted score is .10. Threat 4 Competitors are strong Above shown Figure: Uber and other fare chart the competitors of uber are low fare than uber although Uber get fit mover advantage but it ill not exists so long so we decide weight and rating consecutively 0.05 and 1 so the weighed score is 0.05. Threat 5 Customers have many options Ride-hailing service Uber is the talk of the town now. Although this very concept of 'Uber isation' is new in Bangladesh, Uber isn't the first or only ride-hailing service operating in the country. In the last couple of years, we have seen a significant number of local startups (some backed by foreign VCs) getting into the ride-hailing business. Some of these services are very good, providing premium ride quality and levels of service. Others are not so great, but get the job done somewhat. Here are some of the few that caught our attention are CHALO, GARIVARA, AMARBIKE, PATHAO, TAXIWALA. So, we identified uber targeted customer have so many options to pick up that is main threat of Uber so we decide weight and consecutively 0.05 and 2 and weighted score is .10. 37 https://bit.ly/2wrEu0J
  • 39. Page 35 of 87 E. IFE Matrix (17-90123-2) Internal Factor Evaluation (IFE) Matrix is a strategy tool used to evaluated firm (Uber) internal environment and to reveal its strength as well as weakness. In the following analysis we have identified key internal factors (strengths/weaknesses) that are present based on our primary and secondary research. See Table 1D1 in the appendix section for a summarization of our analysis of internal factors through the IFE Matrix. I. Strengths: ➢ Strength 1: The first opportunity we want to talk about most valuable and well recognized brand. We all know uber is an international company and well-known recognized company. Our Bangladeshi ride sharing company not international organization. Uber have highest market share other than Bangladeshi ride sharing service company. In Bangladesh this brand (Uber) are more profitable than other competitor. Many customers always took well known company. Because brand value is huge fact. I think this brand help to create customer loyalty. In survey questionnaire we saw the highest number of customers are use uber. And also, foreigner is always took international brand and well recognized brand service company. we want to give weight is 15%. The highest weight. I give rating is 4 because I think this is the major strength for uber in Bangladesh. Total weighted score is .60 ➢ Strength 2: The second strength is Faster and stronger services. Superior customer services will be first priority for our business. There are one and only ride sharing company that available 24 hours for the customer. We know uber is world recognized company. This company services more and stronger rather than any other local company. Uber always available which place cover in uber in Bangladesh. For this reason, we give weight 10% and rating 4. Altogether the score is .40. rating is 4 because I think this reason is major strength for uber. ➢ Strength 3: The third strength is strong software and app. we already all know uber is world recognized company. There have strong software and app. In Bangladesh others ride sharing companies’ apps and software are very weak, when many people use those rides sharing services then software not working properly. Butuberhave no problem. In questionnaire number 6 we saw customer are highly satisfied with Uber using ride sharing app. They do not face this type of problems.
  • 40. Page 36 of 87 I think this is also major strength for uber that’s why rating is 4 and weight is 10%. And weighted score altogether is .40 ➢ Strength 4: The Four strengths is competitive advantages. Competitive advantage means different from others advantages. Our company uber is first starting their business in Bangladesh. That’s why most of the customer is loyal in this company. The company takes the first mover advantage. This company’s service also better service compares to other companies. Uber expanding their business in Bangladesh. In survey question report customer is focus on safety issue. Our company uber, main target is ensuring to customer safety and time maintain. We decide to give weight 10% and rating is 4 and weighted score is .40. I think this is major strength for uber. ➢ Strength 5: The fifth strength is emphasis on customer satisfaction. In survey questionnaire number 6, we saw the highest number of people are satisfied with using uber ride sharing app. The main reason of uber popularity is customer are more satisfy to offering varies form of features and maintain safety issue. Features such as- schedule ride, estimated time to arrival, car waiting schedule, fare estimate, multiple payment option, contact drivers, review, rating, cancel trip, trip history, trip information, navigation and many more to come. Recently in Bangladesh uber added car variance like- uber X, uber premium, uber XL, Hire X, Hire premium. Those types of option not available in others competitor. These were the features of uber which helps it to provide quality services to its customer. I give weight 5% and rating is 3.and weighted score is 0.15. Because most of the ride sharing service company features are same. ➢ Strength 6: The six strengths are dynamic pricing strategy. Uber has adopted the dynamic pricing strategy which works on the demand supply principal of economics. Higher the demand, higher the price. It becomes really more beneficial for Uber Company and drivers. When peak hour or time as well as drivers earn big amount of money. I think this is minor strength for uber. That’s why rating is 3 and weight is 5%.and weighted score is 0.15. ➢ Strength 7: The last strength is availability and useable in all situation and condition. People are more technological oriented. They know how to use this app. When they don’t find aby vehicle they can easily access to this app and reached their destination. Uber is available 24 hours. Customers can use anytime like – rainy, foggy, sunny.
  • 41. Page 37 of 87 Uber have served in a wide range which leads to our profit for this specific reason we gave weight 5% and rating 3. Altogether the weighted score is .15. II. Weaknesses: I. Weakness1: The first weakness is customer have more bargaining power. When ride sharing app is run by the customers, they know details regarding trip, fare and everything. To make customer comfort they have to give discount, and other facility, like pricing and discount primo code. In question survey report many customers looking at pricing which company is lower rate. This type of customers any time switches this company. That’s we give weight 10% and rating is 1. Because this issue is major weakness. Altogether score is .10. II. Weakness 2:38 The second weakness is Highly depending on internet. We all know uber is technological based company. This company depends on internet. Bangladesh is developing country. Internet speed slow or poor in my country other than develops country. Uber company and customers also facing problems in Bangladesh because all time internet speed not well in every area. Without internet we cannot use this app. Moreover, the service of uber is such that it can be better managed on the Smartphone or smart device with high speed internet. I will give weight 10% and rating is 1. I think this also major weakness for uber in Bangladesh. Altogether score is 0.10 III. Weakness 3: the last weakness is easily imitated. We know uber is first ride sharing service in Bangladesh. They are first introducing these services. But after some days some others company also came in Bangladesh market. Because low entry barrier in this industry. Some others company copies my services and continue they run their business. For example,pathao, obhai, shohoj. I think this is also weakness for uber in Bangladesh. For this weakness we decide to give weight is 10% and rating is 1. Altogether score is .10 IV. Weakness 4: Another weakness is no new additional features. our first competitor is pathao. Pathao is local company. but there have many features in one app. Like – car, bike, pathao food. Pathao 38 https://bit.ly/2PmItzO
  • 42. Page 38 of 87 delivery. On the other hand, our companies have only car and bike. Another competitor is obhai. There have another extra service is CNG. I think this issue also weakness for uber. That’s why we decide to give weight is 5% and rating is 2. Total score is 0.10. V. Weakness 5: The last weakness is less incentives. Uber give less incentives or customer discount rather than other ride sharing service company. its affected at customer loyalty. Because in survey questionnaire, question number 2 we saw if customer get better price or discount customer are switch to different ride sharing service. It’s very riskier for uber. So, we gave weight 5% and rating is 2. Altogether weighted score is .10
  • 43. Page 39 of 87 F. VRIO Analysis Following IFE matrix, we wanted to see if the organization possesses any core competencies or not. For that we conducted the VRIO analysis, focusing on 3-4 of the most valuable resources and capabilities Uber. See Table 5 for summarization of our VRIO analysis. The most valuable resources we wanted to focus on are: Strong software and app,availability and useable in all situation and condition Faster and stronger services, Most valuable and well recognized brand. Details of the VRIO analysis is below. ➢ 1. Strong software and app: The reason it is marked valuable because we already all know uber is world recognized company. There have strong software and app in Bangladesh others ride sharing companies like Pathao, Shohoz, apps and software are not very user friendly, when many people use those rides sharing services then software not working properly. But uber have no problem. In questionnaire number 6 we saw customer are highly satisfied with Uber using ride sharing app. They do not face this type of problems. Strong software and app it is rare right now in Bangladesh because other ride share app is not very user friendly like uber. So, result is Temporary competitive advantage. ➢ 2. Availability and useable in all situation and condition: It is valuable because in Dhaka, Uber’s availability and useable in all situation and condition is possible. People are now use to with technology. They know how to use this app. When they don’t find any vehicle, they can easily access to this app and reached their destination. Uber is available 24 hours. Customers can use anytime like – rainy, foggy, sunny. But is not rare because Uber competitors are providing same services. So, the result is competitive parity. ➢ 3. Faster and stronger services: Faster and stronger services is valuable and it is valuable because it is an only ride sharing App that available 24 hours for the customer. It is hard to imitate because This company services more and stronger rather than any other local company. Uber always available in Dhaka. Organization Organized because Mobile app-based service Uber began operating in Dhaka on Nov 22 2017. The BRTA also published a notice ordering the company to halt service, calling it ‘illegal’. So, the result is unused competitive advantage. ➢ 4. recognized brand: We all know uber is an international company and most recognized company in our country. Uber have highest market share other than Bangladeshi ride sharing service company. In Bangladesh this brand (Uber) are more profitable than any other competitor. Many customers always took well known company. That is why it is valuable, rare, hard to imitate in this factor Uber have sustained competitive advantage.
  • 45. Page 41 of 87 G. Competitor Analysis Uber Pataho Obhai Shohoz Company Highlights Key competitive advantage We are providing so many discount offer They providing different types of service They have male and female service in one app Payment with mobile banking (BKash) Major strategy Cost leadership Cost leadership Growth and build Cost leadership Market information Target customer Mass people Youth customer and service holder Youth and service holder youth and service holder Market share 50% 30% 10% 10% Marketing strategy online marketing, commercial add Online marketing, tv add Online marketing Online marketing Target customer behavior Use frequently Use frequently Less use Once in a week Product/Service information Motorcycle, Parcel, Car, Food service CNG, car, motorcycle for female Car & motorcycle and Food service
  • 46. Page 42 of 87 Major products &Services Different variation of car uber X, XL, Hire X, Premier, Hire premier Pricing Price high but provide more discount offer E.g.Base fare 40tk Per Min 3tk Per Kilo 18 Price is lower E.g.Base fare 40tk Per Min 2tk Per Kilo 15tk Price is lower E.g.Base fare 40tk Per Min 1.5tk Per Kilo 16tk Price is higher E.g.Base fare 40tk Waiting Per Min 3tk Per Kilo 20tk Distribution channels Map is so strong, available all time Available motorcycle all time, everywhere Not much strong Moderate SWOT Strength Strong financial positionposition Many service provider in one single app Female ride service provider which are not given by competitor Easy payment system Weakness Less service offer Their driver are not skilled enough No available vehicles during pick hour No available vehicles during pick hour Opportunity More service can add new technology More vehicles can add in the service More vehicles can add in the service Threat Political instability Political instability Political instability Political instability Table 6: Competitor analysis
  • 47. Page 43 of 87 H. Competitive Profile Matrix (CPM) Next, we wanted to conduct a Competitive Profile Matrix (CPM). We focused on three main competitors of our company. They are: Pathao, Shohoz & Obhai. We are choosing these two companies as our immediate competitors. We choose those company as our immediate competitors because in our country there are very few rides sharing company & among them Uber, Pathao & Shohoz are the best. There is another competitors company which is Obhai but Obhai is not as much popular than Pathao & Shohoz. So, we choose Pathao & Shohoz as our immediate competitors. See Table F1in the appendix section for the summarization of the CPM matrix. Details of CPM analysis is below. I. Brand reputation: (17-90183-2) The first critical factor of ride sharing industry is brand reputation. This is a critical factor because without brand reputation no industry can run their business properly, We give .20 weight in this factor as in ride sharing industry customer safety is first priority & a reputed brand name gives customer proper safety &satisfaction. Here our company Uber’s ratings is 4 & score .80, Pathao’s ratings is 3 & score .60, Shohoz’s ratings is 2 & score .40, Obhai’s ratings is 1 &score .20. Ubers ratings is high because we all know that Uber is an international company & have well recognized brand name whereas Pathao, Shohoz & Obhai is not international company & don’t have much brand reputation compare with Uber. Many customers always took well known company especially foreign customer as brand value is a huge fact for them. II. Customer satisfaction: (17-90183-2) The second critical factor of ride sharing industry is customer satisfaction. This is a critical factor of ride sharing industry because ride sharing industry fully depends on their customers. So make this industry successful customer satisfaction is must. We want to give weight .20 in this factor because customer satisfaction helps to increase the industry. Here our company Uber’s ratings is 4 & score .80 whereas Pathao’s ratings is 3 & score .60, Shohoz’s ratings 2&score .40 &Obhai’s ratings is 1 & score .20. Here also our company score is high because our company provide 24/7 instant customer service whereas Pathaodonot provide 24/7 customer service. They have a fixed time for this service.Shohoz&Obhai also don’t give proper customer service as their cutomer service agents are not available all time. In fact their customer service is worse than Uber &Pathao. As uber provide the best service than its three competitors, Uber’s customer service is the stronger
  • 48. Page 44 of 87 III. Mobile advertising: (17-90183-2) Mobile advertisement means advertising though mobile phone such as sending text message on mobile, direct call or in cases social media which is also a part of mobile advertisement. This is the most important critical factor of ride sharing industry because it is the main advertising policy by which this industry can reach & attract their customer directly and so we give .20 weights in this factor. Here our company ratings are 4 & score .80, Pathao’s ratings is 3 & score .60, Shohoz’s ratings is 2 & score .40, Obhai’s ratings is 2 & score .40. Here Uber& it’s main competitor Pathao’s score is similar because both of the company tried their level best to reach their customer as fast as possible but our company Uber reach more firstly towards their customer as they have strong mobile advertising policy such as sending text message to the customer, call them & by social media. On the other hand, Shohoz&Obhai is little bit slowly than our company Uber. IV. Price competitiveness: (17-90183-2) Pricing is the most important factor of ride sharing industry. This is a critical factor because now a day’scustomer are very much price sensitive. They mostly compare service by price. So we want to give .20 weights in this factor. Here our company Uber’s ratings is 3 & score .60, Pathao’s ratings is 4 & score .80, Shohoz’s ratings is 2 & score .40, Obhai’s ratings is 2 & score .40 .In this factor our company ratings is little bit low than Pathao because now Pathao has the reasonable price fare than other ride sharing company. Mainly Uber’s calculation is little bit complicated which depends on several factors such as base fare,distance,time, rounding etc. V. Availability of getting workforce: (17-90183-2) This is acritical factor because due to increasing ride sharing industry unemployed people have chance to get in workforce. We give .10 weights in this factor because ride sharing industry increasing the workforce and unemployment rate decreasing. Here our company Uber’sratings are 2 & score .20, Pathao’s ratings is3 & score is .30, Shohoz’s ratings is 3 & score is .30, Obhai’s ratings is 3 & score is .30. In this factor Uber’s ratings is low because Uber don’t have service variation. On the other hand,Pathao, Shohoz&Obhai has service variations such as food delivery, parcel delivery, ticket booking, female bike driver etc. VI. Added product feature: (17-90183-2) It is a critical factor because ride sharing industry now tried to add new feature to their service. We give .10 score in this factor. Here our company ratings is 2 & score .20, Pathao’s ratings is 3 7 score
  • 49. Page 45 of 87 .30, Shohoz’s ratings is 3 & score .30, Obhai’s ratings 3 7 score .30. Uber’s score is low in this factor because Uber don’t have new feature than its competitors. Through Uber is the first ride sharing company in our country they don’t concentrate much on their product feature & variations. They only have car &bike service. On the other hand Pathao, Shohoz, Obhai‘s score is high because they offer various type of services such as: food delivery, parcel delivery, online tickets,cng service, female bike driver etc. Finally, we can say that the overall score of our company Uber is 3.4, Pathao is 3.2, Shohoz is 2.2 & Obhai is 1.7. Uber’s score is high mainly for their brand reputation, strong customer service, discount offer etc. so it can easily said that Uber’s critical success factors are more strong than its other competitors Pathao, Shohoz ,Obhai.
  • 50. Page 46 of 87 Customer purchasing criteria 1 2 3 4 5 Poor Excellent Delivery on criteria I. Value Proposition Analysis Uber Pathao Obhai Shohoz Sub. Industry 1 Pricing 2 Availability 3 Customer Service 4 Discount offer 5 Service verity 6 Pick-up & drop-up point 7 Waiting time
  • 51. Page 47 of 87 Customer purchasing criteria 1: Pricing:(17-90124-2) Score: Pricing is the most important criteria for any service industry. Ride sharing is a service based industry. So pricing is very important for this industry. now a day’s customer are very much price sensitive. They compare with one company to other service by price. Most of the customers in this ride sharing industry are young generation who are student. They are very price sensitive. Middle class people are also using ride share app. So this is the most crucial criteria for choosing any ride share app. For our analysis we score different ride Share Company based on some criteria. We select one specific place, destination & time then we give them score according to cheapest price. Based on our analysis company score are given bellow: ➢ For ride share industry substitute industry are bus, rickshaw, leguna which fare is very low that’s why we give them score 5. ➢ Pathao has best price among its entire competitor. That’s why we give them score 4. ➢ Uber price are little more complicated which depend on several factor. Its estimated fare may be increase due to travel duration. That’s why we give them score 3. ➢ Obhai & Shohoz offering similar price which are little bit higher than other competitor. That’s why we give them score 2. Uber is well known brand all over the world. They have enough ability & resources to improve pricing strategy and fulfilled customer need. Because low price is customer inner desired need. In Bangladesh right now, their direct competitor is pathao. As uber is global brand so they have ability to compete with pathao by their network, resources and experience in BD. Customer Purchasing criteria 2: Availability:(17-90124-2) Score: Availability is another important for ride sharing industry. Because if vehicle are not available during travel, than customer will lose their interest over that particular company. Customer always prefers that company which is available all the time. Uber Pathao Obhai Shohoz Sub Indus. 3 4 2 2 5 Uber Pathao Obhai Shohoz Sub Indus. 5 4 1 2 5
  • 52. Page 48 of 87 Most of the customer who works in city they need ride service any time specially when regular transportation (bus, cng) are not available. That’s how it relates with customer behavior. For our analysis we score different ride Share Company based on regular availability and during unrest situation. Based on our analysis company score are given bellow: ➢ Uber is available all the time even in unrest situation that’s why we give them score 5. ➢ Pathao are also available all the time but during unrest situation pathao driver stop their app and provide contractual service which are illegal. That’s why we gave them score 4. ➢ Obhai are not available during pick time. Their entire vehicle shows busy. That’s why we give them score 1. ➢ Shohoz are not so available all the time but they are available more than obhai. That’s why we give them score 2. ➢ For ride share industry substitute industry are bus, rickshaw, leguna which are available all the time, that’s why we give them score 5. Customer purchasing criteria 3: Customer service:(17-90124-2) Score: Ride sharing is a service based industry. So customer service is very important for this industry. Before, during and after service customer can face many problems. Which company can solve as many customer problem they will get that much customer retention. Great customer service will result in maximum customer retention. Most of the customers in this ride sharing industry are young generation who are middle class people. They are very sensitive about customer service. If they don’t get good customer service easily they can switch another company. For our analysis we score different ride Share Company based on some criteria. Which are: problems and solutions in customer service and lead time in customer service. ➢ Based on our analysis we found that Uber gives best customer service among other company. They also provide solution with a very short time. That’s why we give 5 score for UBER. Uber Pathao Obhai Shohoz Sub Indus. 5 4 3 3 1
  • 53. Page 49 of 87 ➢ Pathao also provide good customer service but they are not so good at lead time in customer service. They take few times for that. That’s why we gave them score 4. ➢ Obhai and shohoj are new in this industry so they are not still so good in customer service. That’s why give them score 3 & 3 separately. ➢ Our substitute industry doesn’t provide any customer service that’s why we give them score 1. Our company is still good in these criteria. They are fulfilling customer needs continuously. They have to also work continuously on it. Otherwise competitor can reach us easily. Rivalry among competitor is very high in this industry. Customer purchasing criteria 4: Discount offer:(17-90124-2) Score: For ride share industry discount offer is very important because by this offer company can engage customer with their product. More company will provide discount offer more customer will use their ride service. Because end of the day customer wants low price over then brand loyalty, in this ride share industry. So that’s why it’s very important. There are several factors that affect consumer buying behavior and most important factor is discount offer. For our analysis we score different ride Share Company based on some factor. Which are discount % and discounted money &ride amount. Based on our analysis company score are given bellow: ➢ Uber provide highest amount of discount offer 60- 70% which is up to 50-70 tk. This offer valid for 15 rides. That’s why we gave them score 5. ➢ Pathao provide 2nd highest amount of discount offer 60% which is up to 45 tk. This offer valid for 20 or 10 ride. That’s why we give them score 4. ➢ Obhai offer 20-60% which is up to 30-40 tk. This offer valid for 5-10 rides. That’s why we give them score 3. ➢ Shohoz provide 50% discount offer which is up to 50 tk. But this offer will valid only for 1 ride. That’s why we give them score3. ➢ Our substitute industry doesn’t provide any discount offer that’s why we give them score 1. Uber Pathao Obhai Shohoz Sub Indus. 5 4 3 3 1
  • 54. Page 50 of 87 By providing discount offer uber try to fulfill customer need. Their price is little bit higher than other but they makeup them by discount offer. They know how to adjusted price by this discount offer. They always try to provide best discount offer so that they can 1 step ahead from competitor. Customer Purchasing criteria 5: Service verity:(17-90124-2) Score: It’s very important that customer can get many services and service varity from one app. Customer always want different service option which is suitable for them. So service verity is important for ride sharing industry according to market demand. Different customer has different types of behavior. Someone wants bike ride service, some wants car ride service or someone want postal service. It’s very easy for customer if they get different service from one single app. Right now every ride share company tries to introduce service verity so that they can capture all customer segments. In future these criteria will be more important because of customer demand. For our analysis we score different ride Share Company based on their service differentiation and category which they are providing right now. Based on our analysis company score are given bellow: ➢ Pathao is providing different service category like car, bike, postal and food. That’s why we give them score 5. ➢ Uber provide two types of service. Which is bike and car but they have different variation on car like Uber X, Hire X, Uber XL, Premier, Hire premier. As they don’t have different service category that’s why we give them score 4. ➢ Obhai has three different service verities which is bike, cng, women ride. That’s why we give them score 4. ➢ Shohoz has two types of service car and bike. But right now they are providing only bike service that’s why we give them score 2. ➢ Our substitute industry has different service verities which are Bus, Rickshaw and Laguna. That’s why we give them score 3. Globally Uber is providing car ride service. In Bangladesh now they are focusing only on car and bike ride service. They have enough variation on their car segment. So for fulfill customer need they have enough ability to introduce new service verity in Bangladesh. Because most the competitor already providing different service verity. Based on customer demand in future they will also provide this. Uber Pathao Obhai Shohoz Sub Indus. 4 5 4 2 3
  • 55. Page 51 of 87 Customer Purchasing criteria 6: Pick-up & drop-up point:(17-90047-2) Score: It’s very important that customers may request for the service at any point of Dhaka city of their service area. So a lots of request may come to the driver s apps. Sometimes drivers don’t want to come the exact location because of various factor like traffic jam, tiny roads or may be the palace is not known to him. But most of the drivers they are very good in communication skill and feel free to reach pick up point of the customer. This is applicable for all the ride sharing apps in our country. But drop up point is same behavior has arisen from the driver of apps. Because other ride sharing apps they are preview the destination of the customer in apps details. So the driver is predetermined set to drop the customer that point. On the other hand Uber is different for the competitor because only they believe that you are committed to go anywhere to their providing services area. When you are joining as a driver of Uber. That’s why they are not showing the customer destination previously. So it’s tiny complicated for Uber to proper delegation of their driving service. Different customer has different types of behavior. Someone they are want to meet the driver of their exact pick up point they are not keep to step ahead to reach the driver. For our analysis we score different ride Share Company based on their service differentiation and category which they are providing right now. Based on our analysis company score are given bellow: ➢ Uber rating (5) is higher than any other ride sharing company. It’s an international company so they have different strategy for customer satisfaction. They are just showing exact time to get the car or bike service. Sometimes it may vary because of network speed. Drop out service is good enough than any other because Uber driver they have no obligation to drop the customers any point. It’s one of the reasons Uber is charging on kilometer basis. ➢ Pathao rating (4) because most of the time their driver accept the request after 1 min they just cancel it. And apps didn’t provide update history of the car or bike. Drop out is as usual. ➢ Obhai rating is slightly low (3) than Uber because they are showing bikes or car is your nearby. Actually when you just request for service then the apps showing ten or 20 minutes to pick the bike, cng, and car service. On the other hand drop out service is normal as other apps. ➢ Shohoz rating (3) because of their bike rider’s quantity very low and their drivers are not good behave to the customers and also did not provide location properly. Drop out is as usual. ➢ Our substitute industry has different as like local bus, Layguna etc. Local bus pick up and drop up point are not suitable for us because of when I go to office or university that time my area nearest bus stand Uber Pathao Obhai Shohoz Sub Indus. 5 4 3 3 1
  • 56. Page 52 of 87 pretty much too long. And walking times 20-30 minutes. Also we do not know when we are go to actual drop up point. So that, internationally at present time comparatively Uber and also Pathao Pick-up & drop-up point are well. Others ride sharing apps are not maintain well Pick-up & drop-up point customers criteria. Customer purchasing criteria 7: Waiting time: (17-90047-2) Score: For ride share industry waiting time is very important issue because by this issue company can engage with their customer. Most of the ride sharing company will think about their customer are not wait to much when he or she go to the office or anywhere in Dhaka city. If any ride sharing Apps Company do not conscious waiting time issue then customers day by day not use ride sharing apps. Based on our analysis company score are given bellow ➢ Uber waiting time rating (4) because of their slogan is to catch customers within 2 minutes. It’s true when I go to anywhere in Dhaka city. Many times I was go to Khilgaon to Airport, when I call Uber then within 2 minutes drivers catch to his customers actual pick up point. ➢ Pathao: waiting time rating also (4) but there is no slogan. But this ride sharing apps company drivers to catch their customers early. And Pathao drivers catch to his customers actual pick up point. ➢ Obhai: waiting time rating (2) because of some times customer to much wait and this ride sharing Apps Company are not conscious properly waiting time issue. That’s why customers are not used Obhai bike riders. ➢ Shohoz: waiting time rating (1) because of their drivers quantities are not much. Uber and Pathao bike drivers too much. That's why Shohoz apps are not used more people. ➢ Our substitute industry (2) here is infinite waiting time because nobody bound to you. Here is your wish whatever you want at any time come and go. If you go first you will catch the service first. Because there no service standard for the consumer. So that we can say waiting time is vary on the service standard provider. Also it depend on consumer behavior how he used to take the service and how he satisfied with them. Uber Pathao Obhai Shohoz Sub Indus. 4 4 2 1 2
  • 57. Page 53 of 87 3. Survey (17-90262-2)
  • 58. Page 54 of 87 Total participants: 104 Mode of Survey: Online Survey was available to the participants from16-OCT-2018to4-NOV-2018 Limitations of the survey: • The time period is short to conduct this kind of research report. • The sample size is not sufficient to present the proposed scenario. • Most of the respondents avoided us because they were not interested to do this survey. • Many didn’t provide the proper answer what we expect. Survey Analysis Question 1: Which transportation mode do you use most frequently for traveling in the city? ❑ This question is asked to finding out how much popularity Uber have. ❑ The expectation before the survey was around 20 to 25 present use UBER as a mode of transportation. ❑ The actual result is not matching the expected result. ❑ This question answered will be used for suggesting corporate strategy.
  • 59. Page 55 of 87 ❑ Question 2: Do you think ride sharing business can create employment opportunity? ❑ This question is asked to finding out how this sector can play a vital role in employment opportunity. ❑ Most of the people (10.9+34.7=45.6%) agree with this but 40% are neutral and rest are disagreed with this. ❑ Before the survey we think this industry can create big employment opportunity in BD but the actual result is not match with our thinking. Question 3:Would you like or prefer women rider? ❑ This question is asked to finding out weather people want women rider or not. ❑ Most of the people (34%+37.9% = 71.9%) agree with this but 28% neutral with this.
  • 60. Page 56 of 87 ❑ The expectation before the survey was around 40 to 50 present people want women rider but the actual result is not matching the expected result. ❑ This question answer will help for suggesting business strategy. Question 4: Which factor is most important to you when choosing a ride sharing app? ❑ This question is asked to finding out which factor is most important to choosing a ride sharing app. ❑ Most of the people are concern about safety (50% are safety response). ❑ As a customer I also think about the safety and my survey results show me too. In that case my expectation and the actual results match very smoothly. ❑ This survey will help me to find out the operational strategy. Question 5: How much you satisfied with the ride sharing app?
  • 61. Page 57 of 87 ❑ Most of the people are satisfied use in uber ride sharing app 40% up highly recommended 35% are moderate 10% are low. ❑ 35% people are highly recommended 45% are moderate 8% are low ues the satisfied pathao ride sharing app ❑ The survey result is very few people are use in satisfied shohoz ride sharing app ❑ people are not interest use to satisfied ohbai ride sharing app that's why low rate of highly recommended, moderate and low is highest percentages people knock here.
  • 62. Page 58 of 87 4. Recommendations