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Motor Oil Market

Transport Sharing Economy to Influence Engine Oil Market

Dec 15 • Market Insights • 742 Views • 15 Comments on Transport Sharing Economy to Influence Engine Oil Market

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Ride-sharing is by far the biggest building block of what is known as the “sharing economy”. Ride-sharing platforms connect drivers and vehicles with consumers who want rides at an agreed price. So far, in Bangladesh, this ride-sharing economy can be observed as a tech-oriented business venture, a transformative one to our transportation system.

Bangladesh witnessed a leap in ride-sharing space with the emergence of Pathao, the most popular local ride-sharing company which got off the ground in 2016 and the entrance of Uber in Bangladesh market in late 2016. At this juncture, besides, Pathao and Uber, quite a few ride-sharing companies are emerging to cater to the mounting public demand.

In fact, the ride-sharing industry is worth an estimated Tk 2,200 crore, yearly. Even then, it makes up only 23% of the transport sector and has barely made a dent in the larger picture of the larger overall transport industry.

Such initiatives have set a trend of using mobile apps to order a taxi or motorbike for either sole or shared travel.

In essence, Uber has essentially set the tone for companies such as Chalo, Muv, Dhaka Moto, Bahon, Amar Bike, Amar Ride, Taxiwala, Dako, Ezzyr, Goti and Hellow Ride, all of whom have created a booming ride-sharing market.

So it is clear that the engine oil market is on the cusp of significant change triggered by forces shaping the future of mobility.

Market Insiders forecasted that how and when engine oil demand will change as a reaction to transformative venture redefining mobility, including the advent of ride sharing.

The ride-sharing economy has already initiated a mobility revolution, impacting engine oil demand due to more frequent oil drain intervals in the near term.

In the mid, the impact is more difficult to model; however, opportunities for partnerships to engine oil market and other lubricant products or use it as a new channel to market are among the positive factors.

In the ride-sharing model, major engine oil brands need to look to the future, as questions such as who will be making the decision on the ‘brand’ of the engine at the time of an oil change will be raised. So itis clear that the engine oil market of Bangladesh is looking at the ride-sharing services.

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