• Tuesday, Dec 07, 2021
  • Last Update : 04:27 am

Pathao becomes 1st ridesharing app to cut commission on bike rides

  • Published at 05:47 pm November 24th, 2021

This comes just weeks after ride-sharing drivers of various apps had demanded that the companies they work for reduce their commission from the existing 25% to 10%

Pathao, Bangladesh’s market leader in motorcycle ride-sharing, has brought down its commission on bike rides to allow riders to earn up to 90% of the trip fare. 

Effective from Thursday, Pathao will be taking 10% of the bike ride fares during peak hours — 8am to 11am and 5pm to 8pm — and up to 15% during the off-peak hours. 

This comes just weeks after ride-sharing drivers of various apps had demanded that the companies they work for reduce their commission from the existing 25% to 10%.

This is the lowest rate of commission charged by any platform in Bangladesh and the new commission structure is applicable nationwide. 

Previously, Pathao charged 15% as commission on two-wheel rides in Dhaka and 25% in Chittagong and Sylhet. 

This change will contribute to making the bike ride-sharing service even more reliable for users, especially during peak hours, as they will now enjoy the greater availability of riders looking to maximise their earnings. 

"Pathao has created opportunities for our aspiring riders to earn more and improve their lives. With this commission cut, we wanted to recognise the largest and most loyal pool of riders at Pathao, who are ensuring a safe and reliable experience for our users," said Fahim Ahmed, CEO and managing director of Pathao. 

On November 14, at a press conference in the capital, the Dhaka Ride Sharing Drivers Union had also demanded to be integrated under the labour law framework and threatened to go on strike from November 28 if their demands were not met.

They also demanded a policy for apps that ensures no ride-sharing driver is blocked by the app without proof of guilt, and also a policy which would prevent the companies from depriving them of their share of the fare in the name of "upfront bills."

Other demands entailed providing legal parking in Dhaka, Chittagong and Sylhet, as well as exempting Advanced Income Tax (AIT) from enlisted vehicles.

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