Around 6% of the population that owns a smartphone and the 150,000 tourists that visit each year use Uber. Major urban city centers (Dhaka, Chittagong, and Khulna) that contain improved roads and large populations. Lownumber of smartphone sales in Bangladesh is a serious concern for market potentialMarket Competition:Trust Transport Services: Regional Bangladeshi company that offers a wide variety of transportation services such as taxis, bus and minibus services and ambulances. Toma Construction and Co. Ltd.: Toma is a global business that produces concrete, builds bridges, roads and buildings and also provides water development and taxi services.
Rickshaws: Outnumber taxis in major city centers. There are roughly 3 million rickshaw pullers operating on the streets during peak times in Dhaka.OBHAI, Pathao, Shohoz.2.4) Skilled labor:As with many other developing countries, it is a challenge for Bangladesh to develop the skills of young people. A better skilled workforce would enable Bangladesh to take advantage of new economic opportunities and boost theemployment options for the country’s growing workforce.In Uber, only 10% of Uber employees are support centeremployees. These employees work at the corporate headquarters, regional offices, or from home-based locations. They earn a set hourly wage or annual salary. The requirement for skilled labor is low for the company’soperations also the low cost of labor in Bangladesh is huge benefit for any industry. While rest of the 90% of Uber’s workforce are considered independent contractors, there are lower payroll and benefit costs from traditional employee-employer arrangements. Additionally, Uber drivers are responsible for providing their own vehicle, insurance, and equipment. Lowers overall investment and capital equipment costs. Since Uber drivers are required to provide their own insurance, lowers company liability and insurance costs.2.5) Problems with infrastructure:2.1 The Sharing Economy: Motivations and LimitationInfrastructure bottlenecks are among the largest inhibitors of economic growth in Bangladesh. The World Bank estimates that Bangladesh must spend $7.4 billion to $10 billion a year until 2020 to bring its power grids, roads and water supplies up to the standard needed to serve its growing population. The transportation sector alone will require between $36 and $45 billion of investments. Other priority sectors identified by the World Bank include water supply and sanitation, solid waste management, and telecommunications.The ridesharing service of Uber in Bangladesh continues to grow despite facing great resistance from existing infrastructure establishments. A recent survey shows that 53 cars are added every day to the roads of Dhaka, in contrast to only 10 buses/minibuses. The proliferation of private vehicles on the road has created conditions for Uber to flourish.