Published :
Updated :
For all latest news, follow The Financial Express Google News channel.
In the famous Masud Rana series by Qazi Anwar Hussain, Rana frequently rents cars during landing in new locations in different countries. Even a top-notch spy like him uses it! But in reality, it is an essential part of our life.
People often go for rent-a-car services for both short and long trips. Renting a car is not only about convenience but also about reliability and a sense of pride for the middle class. However, the scenario gets challenged by the emergence of ride-sharing apps.
The rise of ride-sharing apps like Uber, Pathao and so on has deformed this culture. These apps have changed how people go for transportation, modifying pricing structures, consumer habits, and the availability of cars.
One of the most dramatic changes ride-sharing apps have brought is the shift in fare tradition.
Previously, a fixed rate was charged by the rent-a-car services, mostly based on time and distance. On the other hand, ride-sharing apps come up with dynamic pricing, which adjusts in real time in accordance with demand and traffic conditions. This flexibility attracts customers but can lead to drastically high fares during peak times.
It works for many, but dynamic pricing faces reactions where the customers appreciate the ease and availability of the service. In contrast, for some others, the frustration is high due to gush pricing during busy hours when the fares surge even higher compared with rent-a-car services.
These ride-sharing applications have also changed how consumers behave. People used to book a car for an occasion, say, weeks or days in advance. Now, with just a few taps on the customer’s smartphone, the customer can have immediate access to transportation, making the whole process seamless.
That shift has sent shockwaves into the rent-a-car business, which finds it impossible to keep pace with the on-demand nature of ride-sharing apps.
“I’ve been in the rent-a-car business for over a decade, and we used to have regular clients, especially for long trips. But now, with these apps, people want instant access to cars. They don’t want to book in advance; they want to push a button and go,” said a Dhaka-based rent-a-car driver, Md Asad (who wanted to make it anonymous).
Due to this fact, many of the drivers associated with rent-a-car have started practising by collaborating with ride-sharing platforms and hence listing their cars to ensure a continuous flow in clientele. By doing so, they can stay competitive in a market that is booming really fast.
Another thing is that ride-sharing applications changed the way car ownership was looked at. Many who could afford to buy cars did not want to since they could have access with just a tap.
Interestingly, for rent-a-car companies, the apps opened up new avenues of revenue. Many listed their fleet on ride-sharing platforms; this meant increased trip frequency and more earnings in return.
For individuals, it has also blurred the line between what should have been conventionally rented and what belonged to a person. “I used to book cars for the whole day, but with Uber, I can take a ride anytime without paying for unnecessary hours,” said Nazmul Hasan, a regular user of the app.
The rise of ride-sharing applications has irreversibly changed the manner in which Bangladeshis travel by car. From adjustments in the structure of fares to changes in consumer behaviour and supply, ride-sharing platforms have forced traditional rent-a-car services to seriously reconsider their business models if they want to avoid facing relegation into oblivion.
With the industry yet to take firm shape, the future of transportation in the country will be shaped by how traditional car rentals will coexist with ride-sharing.