Is Ride-Sharing Sector Driving Next MCO of Bangladesh?

Ride-Sharing Sector of Bangladesh
Is Ride-Sharing Sector Driving Next MCO of Bangladesh?

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The ride-sharing sector of Bangladesh has found as an initial success in terms of solving traffic woes; however, the ride-sharing apps are middle-class urban solutions to a problem that affects the masses.

So far, the ride-sharing policy can be observed as a tech-oriented business venture, a transformative one to our transportation system.

The popularity of Pathao has already increased the two-wheeled traffic in Dhaka. Especially, the motorcycle population focused on ride-sharing has increased a 44 per cent uptake in the sale of motorbikes. So, the local ride-sharing industry is turning out to be decidedly two-wheeled in nature.

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

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

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

The emergence of ride-sharing companies like Pathao has already initiated a mobility revolution, impacting MCO demand due to more frequent oil drain intervals in the near term.

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

In the ride-sharing model, major MCO brands need to look to the future, as questions such as who will be making the decision on the ‘brand’ of MCO at the time of an oil change will be raised.

Do the current marketing messages of MCO suppliers resonate with this group of buyers, decision makers, and influencers, or do they need to be modified for this new and growing segment of the market?

However, the motorcycle oil market of Bangladesh is looking at the ride-sharing services, and the impact of these factors on MCO demand.


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