COVID-19: Ride-sharing companies looking for ways to cut costs | The Business Standard
Skip to main content
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
The Business Standard

Friday
January 27, 2023

Sign In
Subscribe
  • Home
  • Economy
    • Aviation
    • Bazaar
    • Budget
    • Industry
    • NBR
    • RMG
    • Corporates
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
    • Book Review
    • Brands
    • Earth
    • Explorer
    • Fact Check
    • Family
    • Food
    • Game Reviews
    • Good Practices
    • Habitat
    • Humour
    • In Focus
    • Luxury
    • Mode
    • Panorama
    • Pursuit
    • Wealth
    • Wellbeing
    • Wheels
  • Epaper
  • More
    • Subscribe
    • Videos
    • Thoughts
    • Splash
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • COVID-19
    • Games
    • Long Read
    • Interviews
    • Offbeat
    • Podcast
    • Quiz
    • Tech
    • Trial By Trivia
    • Magazine
  • বাংলা
FRIDAY, JANUARY 27, 2023
Ride-sharing companies looking for ways to cut costs

Bangladesh

Mahfuz Ullah Babu & Nurul Amin
21 April, 2020, 09:25 pm
Last modified: 23 April, 2020, 12:54 am

Related News

  • Why are riders accepting trips and not showing up?
  • ‘The commission we charge is fairly representative of the quality of service we provide’: Uber Head, India & South Asia 
  • Fuel price, rising costs push ride-sharers to the brink
  • Are ride-sharing businesses losing their way? 
  • 6-point demand of ride-sharing drivers  

Ride-sharing companies looking for ways to cut costs

There have not been any job losses in the gig companies in Bangladesh yet, at least officially, because of the pandemic, but pay cut within teams has already begun

Mahfuz Ullah Babu & Nurul Amin
21 April, 2020, 09:25 pm
Last modified: 23 April, 2020, 12:54 am
Representational Image. Photo :Mumit M/TBS
Representational Image. Photo :Mumit M/TBS

Since the beginning of the novel coronavirus pandemic, ride-sharing services stopped operating in Bangladesh.

Companies like Pathao, Uber and Sohoz are shifting their efforts to home delivery of groceries and medicines amid increasing responses they have received in the days of shutdown.  

But that is way far from enough to compensate the lost revenue from their core business – motorcycle and car ride-sharing. And the companies are under pressure to find ways to cut costs.

The good news is there have not been any job losses in the gig companies in Bangladesh yet, at least officially, because of the pandemic.

But pay cut within teams has already begun.

Pathao, the local ride-sharing giant, has already announced a restructured payment plan for each of its team members who earns over Tk30,000 a month. 

The progressive pay restructuring plan includes a salary cut, ranging from 30 percent to up to 70 percent, which will impact mainly the mid- and top-level executives. But the other benefits like healthcare, transportation and insurance will remain untouched.

The reduced pay structure was declared to remain effective from April 1 to September 30 this year.

An internal document of the company reveals that employees earning Tk50,000 will get Tk6,000 less over the two quarters, while a top-level employee with monthly gross earnings of Tk210,000 will receive only Tk128,000.

"We are happy that nobody is losing job during this crisis," Hussain M Elius, chief executive officer and co-founder of Pathao, told The Business Standard.

The company operates in three cities of Bangladesh – Dhaka, Chittagong and Sylhet – and in Nepal's Kathmandu. Pathao has ride-sharing services, food delivery, courier and e-commerce services. 

The company has around 500 employees on its payroll. It has 300,000 drivers in the ride-sharing service, which is totally suspended due to the lockdown. Half of the drivers left Dhaka.

Elius said he expected e-commerce business would rise amid the lockdown, but that was not the case.

"We have orders, but lack of delivery people and restriction on movement have pushed the business down further," he explained.  

Obhai, another ride-sharing service, said it is yet to cut salary or jobs. It has 500 bikers on its payroll who use bikes provided by the company.

Sohoz, which offers online bus ticket booking and ride-sharing service, is also facing revenue losses. It launched grocery delivery services after the countrywide shutdown was imposed and got a good response. It is also planning to launch online medical services soon.

But the pandemic has hit the company's revenue and if the situation prolongs, we will also have to find ways to cut costs for survival, said Sohoz Chief Executive Officer Maliha Quadir.

About a dozen employees who resigned recently complained to The Business Standard that they were technically forced to resign just before the shutdown and the company is planning a significant reduction in staff.

However, Quadir rejected the claim and said they may be part of the underperformers who are regularly asked to leave the team.

"We are trying to avert any heartbreaking consequence of business challenges due to the pandemic. Headcount reduction is the last part of cost-cutting plan, and we are yet to reach there. In fact, we will need people to run the expanding activities," she said.

"Right now, we are trying to avert possible pay cuts across the teams, but do not know the future," she added.

The Business Standard contacted Uber team in Bangladesh to inquire about possible cost-cutting measures, but did not get any response.

 

Economy / Top News

Ride sharing

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Manufacturers feel the pinch as consumers tighten belt
    Manufacturers feel the pinch as consumers tighten belt
  • Sugar turning bitter!
    Sugar turning bitter!
  • Island hopping in Bangladesh?
    Island hopping in Bangladesh?

MOST VIEWED

  • Picture: Collected
    US Embassy condemns recent incidents of visa fraud
  • Four top bankers arrested in DSA case filed by S Alam group 
    Four top bankers arrested in DSA case filed by S Alam group 
  • Photo: Saqlain Rizve
    Bangladeshi university students identified as problematic users of Facebook, internet: Study
  • Ctg Port Gets A Boost: The Chattogram port officially starts to berth vessels with 10 metres drought on Monday. As of now, only 9.5m draught vessels could anchor at the port, each carrying 2,500 TEUs. But the 10m draught ship will be able to carry 4,000 TEUs, bumping up the port’s container handling capacity and bringing down costs. The photo was taken recently from the port area. Photo: Mohammed Minhaj Uddin
    Dollar crisis: 3 ships with 54,000 tonnes of goods get stuck at Ctg port
  • First Hyundai car manufacturing plant in Bangladesh inaugurated 
    First Hyundai car manufacturing plant in Bangladesh inaugurated 
  • Matarbari coal-power plant, one of the projects funded by Japan International Cooperation Agency (Jica)-funded projects.
    More than 50% Japan-funded projects lagging behind

Related News

  • Why are riders accepting trips and not showing up?
  • ‘The commission we charge is fairly representative of the quality of service we provide’: Uber Head, India & South Asia 
  • Fuel price, rising costs push ride-sharers to the brink
  • Are ride-sharing businesses losing their way? 
  • 6-point demand of ride-sharing drivers  

Features

Island hopping in Bangladesh?

Island hopping in Bangladesh?

1h | Panorama
According to the CAB president Ghulam Rahman, one of the most common complaints of consumers is being deceived by sellers when it comes to the weight of goods. Photo: TBS

Has the Directorate improved consumer rights in Bangladesh?

2d | Panorama
A 2022 survey of 1,000 companies by professional services consultancy PwC found that between a sixth and a quarter had used AI in recruitment or employee retention in the past 12 months. Illustration: Bloomberg

AI is coming to your workplace. Is the world ready?

2d | Panorama
Edison Desdemona, the newly launched stellar project of Edison Real Estate, located at Bashundhara Residential Area. Photo: Courtesy

EDISON DESDEMONA: A creation like no other

2d | Habitat

More Videos from TBS

Kajol’s road paintings bring change in Gafargaon

Kajol’s road paintings bring change in Gafargaon

13h | TBS Stories
Carew & Company witnessed a remarkable growth

Carew & Company witnessed a remarkable growth

14h | TBS Stories
PCB recalls cricketers from BPL ahead of PSL

PCB recalls cricketers from BPL ahead of PSL

16h | TBS SPORTS
Why Misha Sawdagar became villain instead of a Hero?

Why Misha Sawdagar became villain instead of a Hero?

15h | TBS Entertainment

Most Read

1
Picture: Collected
Bangladesh

US Embassy condemns recent incidents of visa fraud

2
Four top bankers arrested in DSA case filed by S Alam group 
Bangladesh

Four top bankers arrested in DSA case filed by S Alam group 

3
Illustration: TBS
Banking

16 banks at risk of capital shortfall if top 3 borrowers default

4
Photo: Collected
Splash

Hansal Mehta responds as Twitter user calls him 'shameless' for making Faraaz

5
A frozen Beyond Burger plant-based patty. Photographer: AKIRA for Bloomberg Businessweek
Bloomberg Special

Fake meat was supposed to save the world. It became just another fad

6
Representational Image
Banking

Cash-strapped Islami, Al-Arafah and National turn to Sonali Bank for costly fund

EMAIL US
[email protected]
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2023
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - [email protected]

For advertisement- [email protected]