The symposium titled, ‘Digital Disruption in Business and Society’ was organized by Center for Enterprise and Society (CES) at University of Liberal Arts Bangladesh (ULAB) auditorium in the capital
Lack of customers’ loyalty and informal communication among drivers and passengers were the key reasons behind revenue loss of ridesharing companies operating in the country, said speakers in a seminar on Tuesday.
The symposium titled, ‘Digital Disruption in Business and Society’ was organized by Center for Enterprise and Society (CES) at University of Liberal Arts Bangladesh (ULAB) auditorium in the capital.
“Customer defection or churn is one of the major problems for ridesharing companies of the country as there are available options for the passengers. The ride sharing companies like Uber and Pathao mainly try to retain their customers through promotional offers. So, whenever passengers don’t find such offers they move to another app,” said CES Research Associate MD Oaliur Rahman in his presentation.
He said the ridesharing companies needed to know their customers better for retaining them under the current competitive situation.
“Offering promotional discounts reduce their revenue and scopes for investing in innovations. The ridesharing companies need to focus on innovative methods for retaining their customers,” he said.
In the presentation, he also pointed out that informal communication between drivers and passengers was a key reason for revenue loss of the ride sharing companies.
“Now we see drivers and passengers are dealing outside the apps. Such informal communication appears to be a major challenge. It also raises security concerns as there remains no traceable document for such dealings,” he said.
Oaliur said the government should come up with better policy for the ride sharing services to address the challenges crippling the sector.
“Our goal in ride sharing business should be high occupancy rather than high frequency. It is not about how available is a ride for a single rider rather than how many people can use one vehicle for common destination. It will ensure better use of resources,” he added.
CES Director Sajid Amit and ULAB School of Business Dean Imran Rahman were also present on the occasion, among others.