Women-only ridesharing apps step on the brakes
In a market where bike services were mostly offered by male riders, some companies decided to capitalise on the vacuum for female riders. But the women-only ridesharing services left almost as quickly as they entered the market
Back in 2016, as app-based ridesharing became a phenomenon in Bangladesh, the market seemed to be growing fast without any intention of slamming on the brakes.
And as numerous companies decided to hop on that bandwagon, the Bangladesh Road Transport Authority (BRTA) ended up approving 15 ridesharing companies in line with the Ride-sharing Service Guidelines 2017.
However, bike services were mostly offered by male riders, and many women found that uncomfortable.
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Even last year, a survey conducted by Aachol Foundation found that more than 60% of female adolescents who use public transport in the capital become victims of some form of harassment.
Some companies wanted to alleviate this pain and thus women-only ridesharing apps were born. But the services disappeared almost as quickly as they entered the market — not a single one exists anymore.
So what caused the death of the women-only ridesharing apps?
Lily Ride withered before blooming
Launched in December 2017 with the slogan "For women and by women," Lily Ride was the first in the country to offer a women-only ridesharing service, meaning the rider and commuter both were women.
Syed Saif, co-founder of Lily, first had the idea when his wife received a text from a male motorbike driver after her commute, which made her "really uncomfortable."
Then came the pandemic.
The app is now nowhere to be found, the website no longer works and the Facebook page last posted in January 2022. Heading to their office address given on the Facebook page revealed that they had left the address long ago.
However, Lily still exists, just not as a ridesharing service provider anymore.
"We have pivoted from ridesharing to a more interesting business model. It is a fusion between ecommerce and social media — we call it a zero investment business platform for women," said Saif.
Asked why Lily Ride had failed, Saif responded that it was the lack of enough female riders. "We could not keep up with the demand. For example, there were requests for 150-250 rides daily and we could complete only around 15," he elaborated.
Lily tried to train new riders, but that too did not work. So, they could not keep it up and finally shut down completely in 2021. "The business model is not a sustainable one; though I started with much enthusiasm, I failed" Saif further said.
Obon to reenter the game
Obon was a concern of ridesharing app Obhai, which offers passengers cars or CNG-driven auto rickshaws for commute. They had a motorbike service and it was under this that they launched Obon, a women-only ridesharing app.
"Starting in 2018, we had expanded to nearly 32 districts by 2019, with plans to cover the entire country in the near future. Significant investments had been made. However, the arrival of the pandemic disrupted our plans," said Rahid Ishtiaque Chowdhury, Chief Operating Officer of Obhai Solutions Limited.
Rahid further explained that the app remained inactive for a prolonged period, resulting in substantial infrastructural and other expenses.
"When we began, we provided motorbikes and training to riders. Unfortunately, the number of women riders in Bangladesh is notably low. To bridge this gap, we trained women from diverse backgrounds, assisted them in obtaining licences, but still faced a shortage of riders," Rahid shared.
"Managing a large pool of drivers is complex," he acknowledged. But despite the obstacles, they managed to expand the driver pool and bike offerings.
However, they encountered a setback when off-app, known as 'khyap' riders, began dominating the motorbike ridesharing market. This prompted a strategic retreat, leading to the complete withdrawal of the motorbike wing. Consequently, Obon was also discontinued, as it was intertwined with the motorbike service.
Presently, there is an ongoing effort to resurrect Obon independently, not as part of the motorbike wing. Collaboration with women's empowerment organisations is in progress.
"By pooling together a group of riders, we aim to relaunch the service," Rahid expressed optimistically.
Pink SAM: Parent company ahead of its time
Back in June 2016, Datavoxel Ltd, based in the US, introduced Share a Motorcycle (SAM) — an app-based motorcycle service in Dhaka city.
"A friend, a senior brother, and I started SAM back in 2015 under Datavoxel Ltd," shared Fakir Zahid Hasan who was the Director of SAM.
In January 2018, SAM expanded by launching Pink SAM, an exclusive app for women's ride-sharing. Unfortunately, SAM's journey was cut short due to operational challenges.
Hasan outlined three main reasons for this outcome. First, SAM's initial strategy focused on providing affordable rides to office-goers, offering rides at a minimal rate of Tk6 per km.
"We offered rides at a much lower rate thinking that since the driver would go to his destination with an empty seat, whatever he would get with a commuter would be extra income for him." However, the market shifted when competitors like Pathao offered better rates (Tk12 per km) to drivers.
SAM started with keeping the helpless office-goers and idle seats of bike owners in mind, but it failed to foresee that it would become a standalone profession. "In reality, commuters were not helpless in terms of money. Therefore, instead of waiting for my bikes, they went to alternatives even at higher fares."
The second reason was SAM's push for cashless transactions through platforms like bKash, which was met with hesitation from customers uncomfortable with app-based payments at the time. "After your ride, you could pay via bKash or your e-wallet. But people in Bangladesh were not that comfortable using e-wallet payment yet," he added.
Lastly, Hasan highlighted the fierce discount battle. Rivals offered unsustainable discounts, straining SAM's resources. "They would profit Tk10 and offer a discount of Tk20. We could not do that. We did not have the funds to back that up," Hasan remarked.
"With Pink SAM, we had high hopes too. We wanted to create a large driver pool, provide bikes on loans. But with all the losses, we had to pack up our business," concluded Hasan.
