Uber’s Economic Impact in Bangladesh
2024
Executive Summary
Since launching in Bangladesh in 2016, Uber has offered flexible, reliable earning opportunities, whilst also transforming the lives of consumers. By making transportation more convenient, safe, and affordable, the company has supported economic growth during a period of instability across the country.
Transforming Travel
Uber has transformed the way people move. With a range of options, including two-wheel, three-wheel, and four-wheel vehicles, Uber has tailored its services to meet the unique needs of Bangladeshi consumers.
Uber provides reliable, comfortable and convenient travel options.
86% of riders agree that the Uber app is an important transportation innovation.
Uber complements other forms of transportation.
of riders say that a lack of public transportation options is an important factor when choosing to use the Uber app and 81% of riders agree that booking with Uber is much easier than hailing a ride in the street.
Uber is transforming the auto and motorbike market.
We estimate that Uber Moto and Uber Auto supported ৳9.2 billion of economic activity in Bangladesh in 2024.
Connecting Customers to Local Businesses
With smartphone ownership on the rise, app-based services like Uber act as a catalyst for economic activity, linking consumers, drivers, and businesses throughout Bangladesh.
Uber particularly supports the night-time economy.
69% of riders agree that having options like the Uber app available makes them more confident in staying out late.
By increasing mobility, Uber creates a spillover impact for the economy.
of riders say Uber made it easier for them to get around their city.
Uber also helps tourists to explore the country.
In total, we estimate that in 2023 Uber created ৳2.9 billion in additional value for the tourist industry.
Expanding Opportunity
Uber offers drivers flexible and reliable earning opportunities. This flexibility is important in Bangladesh, where many people juggle multiple responsibilities or seek supplementary income to support their families.
Uber creates new earning opportunities for thousands of drivers.
We estimate that drivers earned an additional 42% in higher income through Uber in 2024, relative to their next best alternative type of work.
Uber helps drivers to make ends meet.
of drivers agree that they would have struggled to find work if it was not for Uber and 75% of drivers agree that driving using the Uber app can help people cover their bills during the cost of living crisis.
Uber provides a more structured and stable way to earn money.
of drivers prefer driving using the Uber app compared to just 13% who prefer driving without a platform.
Safety Features
The Uber app includes various safety features that provide riders with peace of mind and security. The ability to share trip details with family members, track routes in real-time, and access emergency assistance directly through the app has empowered women to move around cities with greater confidence and independence.
Uber helps riders feel safer while traveling.
89% of riders say that using the Uber app is often the safest way for them to travel home.
Uber particularly gives female riders the confidence to get around.
95% of female riders say that safety is an important factor when choosing to use the Uber app.
Uber has introduced a range of additional safety features to its services.
We found widespread awareness of features such as “Share My Ride” or the emergency assistance button among both riders and drivers, and a belief that they were helping make each ride safer.
Introduction
The platform economy is driving new opportunities across Bangladesh
Bangladesh is undergoing a remarkable digital transformation. From the bustling streets of Dhaka, the growing use of smartphones means that the country is increasingly able to tackle old challenges with new solutions.
With a growing population of 170 million people, Bangladesh’s tech revolution is particularly helpful when it comes to transport infrastructure. Our research found that only 30% of Bangladeshis own or have access to a car, highlighting the critical need for alternative options.
As the nation grapples with political and economic headwinds, the platform economy – including rideshare services provided by Uber – have become a beacon of opportunity for Bangladeshi people.
In Bangladesh the platform economy is:
Offering convenience, reliability and safety.
App-based innovations have empowered Banladeshis to travel with greater confidence.Helping businesses reach new consumers.
Apps including Uber have opened new avenues for businesses to connect to domestic and international customers.Creating flexible income for drivers.
The app-based economy offers flexible, reliable earning opportunities that often provide a crucial financial buffer for families struggling with rising costs of living.In this report, Uber commissioned Public First to better understand and quantify the impact the Uber app has in Bangladesh. We used a mixture of methods to explore Uber’s impact, including:
- An in-depth nationally-representative consumer poll to explore travel habits.
- An anonymous survey of over 262 drivers on Uber, asking them about their experience and the reasons why they chose the Uber platform.
- New quantitative models of the economic impact, time saved, consumer surplus and driver value created by Uber and the wider platform economy, building off the data from Public First’s poll and data provided by Uber.
Overall, we found that Uber supported
of economic activity in Bangladesh in 2024.
Transforming Travel
Uber provides reliable, comfortable and convenient travel options
The arrival of Uber in Bangladesh has led to a digital revolution in urban mobility. In a country where haggling with drivers and uncertainty about fares were daily concerns for commuters, Uber’s services now offer unprecedented transparency and convenience. 93% of riders say that quality of experience is important when choosing the Uber app.
The combination of navigation, digital payments, and real-time tracking brought Bangladesh’s transportation sector firmly into the 21st century, setting new standards for service and customer experience.
According to our survey:
of riders agree that booking with Uber is much easier than finding a taxi.
of riders agree that requesting a ride on the Uber app is often the quickest way for them to get to their destination.
of riders agree that the Uber app is an important transport innovation.
When asked why they chose the Uber app, consumers were most likely to say time saved, comfort and safety.
How much value does Uber create for consumers?
One of the most important measures of economic welfare is known as “consumer surplus”. This is a standard measure of the consumer welfare created by a product, service or organization.
In simple terms, it is the difference between the price the consumer is willing to pay for a service, and the price they actually pay for a service. Services with a high consumer surplus are implicitly playing an important role in people’s lives, because we would willingly pay more than the asking price to keep using them.
In order to understand this metric for Uber’s services in Bangladesh, we asked consumers how much they would have to be compensated to lose access to the Uber app for the next month.
We estimate that Uber produced ৳669 billion in consumer surplus for Bangladeshi riders in 2024.
Uber supports essential journeys.
The Uber app has also made it easier for consumers to choose the most suitable mode of transport for their specific needs, whether it’s a quick trip to the local market, a commute to work, or a family outing. 89% of riders agree that the Uber app made it easier for them to get to places on time.
An integral part of urban life in Bangladesh, Uber provided more choices for consumers, making cities more accessible, travel more efficient, and urban life more convenient, enhancing the quality of life for millions across the country.
of riders have used the Uber app to visit family and friends in the last year.
of riders have used the Uber app to travel to or from a doctors or hospital.
of riders have used the Uber app to travel to school or other types of education in the last year.
Uber is often an important option for work trips too, where reliability, time saved, and comfort can matter. 81% of riders say that the Uber app has made it easier for them to do business-related travel. In fact, we found that 82% of riders used the Uber app to commute to and from work in the last year and 36% commute with Uber at least once a week.
By saving workers’ time on work-related trips, Uber is helping to raise their productivity. In total, we estimate that Uber saves workers over 1.1 million hours a year – with a monetary value of ৳940 million.
Uber is transforming the auto and motorbike market
The introduction of Uber Moto in 2017, a two-wheel option, has made a significant impact in a country where motorcycles are a popular mode of transport. This service allows riders to get through congested traffic with ease, providing a quick and affordable solution for short trips.
By 2019, Bangladesh had become Uber’s largest motorcycle market globally, surpassing even India and Egypt, and in 2021, Uber expanded its ride-hailing service to three divisions of Bangladesh.1
For many riders, Uber Moto has become an indispensable part of their daily routine, saving them precious time and making ride-hailing accessible to a broader segment of the population.
of riders say they are likely to choose two-wheeled options offered on the Uber app.
of riders say they would book a two-wheeler because they can beat the traffic.
of riders say they are likely to use a three wheel option such as a rickshaw or tuk-tuk.
Uber’s three-wheel services, which include auto-rickshaws, have further bridged the gap between traditional and modern transportation methods. These vehicles are deeply ingrained in Bangladesh’s urban culture, offering riders the familiarity of a local mode of transport with the convenience and safety of app-based ride-hailing.
Uber Moto and Uber Auto have both grown substantially as part of Uber’s overall offering and are now powering significant spillover economic impact on their own. We estimate that Uber Moto and Uber Auto supported ৳9.2 billion of economic activity in Bangladesh in 2024.
Uber complements other forms of transportation
For many Bangladeshis, Uber has become the go-to option when faced with transportation challenges. Whether it’s reaching a destination not served by public transit routes, traveling during off-peak hours when buses are infrequent, or needing a quick and reliable ride in emergency situations, Uber’s service often acts as a first-mile and last-mile solution, bridging the gap between homes or offices and major public transportation hubs.
of riders agree that a lack of public transportation options is an important factor when choosing to use the Uber app.
of riders agree that the Uber app has helped them when there were no other transport options.
of riders have used the Uber app to get somewhere where public transport was inconvenient.
Connecting Customers to Local Businesses
By increasing mobility, Uber creates a spillover impact for the economy
According to our research, 87% of riders agree that Uber has made it easier for them to get around their city. This then has a ripple effect on both the retail and restaurant sectors, encouraging people to visit local businesses and share their spending power more widely.
of riders use the Uber app to go shopping at least once a month.
of riders say that the Uber app makes it easier for them to get to restaurants.
of riders agree that the Uber app has made it easier for them to try new restaurants further away from their house.
This is particularly true later at night, with 64% of riders agreeing that having options like the Uber app available makes them more likely to feel confident staying out late. As a result, Bangladesh’s night-time economy benefits from higher foot-fall and greater consumer spending.
By providing consumers with safe, convenient travel options, we estimate that Uber supported ৳430 million in additional value for Bangladesh’s night-time economy in 2023.
Uber helps tourists to explore the country
Bangladesh’s travel and tourism sector has grown steadily, accounting for 2.14 million jobs in 2024. For tourists, safety and reliability are key, especially in a country where language barriers and local transportation systems can pose challenges.2
By providing direct, reliable connections between airports, railway stations, hotels, and cultural landmarks, alleviating the hassle of understanding complex public transport networks or haggling over a fare, Uber is seen as the best option for many domestic and international visitors.
In 2023, we estimate that Uber created ৳2.9 billion in additional value for the Bangladeshi tourism industry.
Expanding Opportunity
Uber creates new earning opportunities for thousands of drivers
Uber offers drivers the freedom to choose when, where, and how much they work. This flexibility is a lifeline for many who juggle multiple responsibilities or face barriers in the conventional job market.
of drivers say that Uber is the first app they have received earnings through.
of drivers agree that they would have struggled to find work if not for Uber.
of drivers agree that the flexibility provided by app-based work makes it easier to balance family and work responsibilities.
Uber helps drivers make ends meet
The earnings generated through the Uber app have then helped drivers amid rising living costs and economic uncertainties, providing drivers with a buffer against financial insecurity.
At a time when finances are tight, we estimate that drivers earned an additional 42% in higher income through Uber in 2024, relative to their next best alternative type of work.
Of those that participated in our research:
of drivers reported that the rising cost of living was the main reason behind their decision to explore earning opportunities through the Uber app.
of drivers agree that apps like Uber provide people with a financial cushion when the economy is struggling.
of drivers agree that driving using the Uber app can help to cover their bills during the cost of living crisis.
Uber provides a more structured and stable way to earn money
The consistent demand for rides provides a more reliable stream of income compared to ad-hoc or seasonal work alternatives. We found that 68% of drivers prefer driving using the Uber app compared to just 13% who prefer driving without a platform.
of drivers agree that driving with the Uber app is more stable than other types of gig economy work.
of drivers agree that driving with the Uber app is easier than other types of gig economy work.
of drivers agree that driving with the Uber app is more profitable than other types of gig economy work.
Safety
Uber helps riders stay safe while traveling
In Bangladesh’s bustling urban centers, safety is a paramount concern for consumers. The Uber app’s safety features, including driver verification, GPS tracking, and the ability to share ride details with friends and family, have created a level of safety and security beyond that of traditional transportation options.
of riders say that using the Uber app is often the safest way for them to travel home.
of riders say that it would be difficult to find a safe way to travel at night if ridesharing services like Uber didn’t exist.
In our polling, both female and male riders were significantly more likely to say they felt safe travelling in a ride-share service like Uber than in a taxi or on public transport.
GPS Tracking
Each Uber ride is tracked live on maps, allowing passengers to follow the travel route in real time and notice any issues.
Share my Ride
This function allows users to share their trip details including route with a friend or family member.
2-way ratings
Drivers and riders rate each other on the app following the ride, incentivising appropriate behavior on the part of both.
Emergency Assistance Button
The feature connects riders and drivers to contact the local police authority while remaining inside the app, and automatically alerts regional support teams.
Ridecheck
This feature recognises when a trip takes an unexpected turn or abruptly stops before the rider reaches their intended destination.
PIN Verification
An added safety feature that riders can opt to use to make sure they are getting into the right vehicle.
These features have created a new standard for transportation safety in Bangladesh, where informal and unregulated options have long been the norm.
of riders feel safer requesting a ride using the Uber app than street hailing a ride.
of riders report that Uber trip insurance makes them feel more comfortable in booking a ride.
Uber gives female riders the confidence to get around
For women in particular, traveling in Bangladesh’s cities presents unique challenges. Traditional transportation options can leave them vulnerable to harassment, especially during late hours or in unfamiliar areas. Female riders therefore often turn to the Uber app to travel between destinations.
of female riders say that safety is an important factor when choosing to use the Uber app.
of female riders say they feel safer requesting a ride using the Uber app than street hailing a ride.
Of female riders say they have used the Uber app in the last year when they didn’t feel safe walking.
Uber’s safety features also improve driver wellbeing
Importantly, these features have benefits for both riders and drivers. The two-way rating system fosters a culture of mutual respect, incentivizing both parties to act responsibly. For drivers, this means operating in an environment where they too feel protected, with features like GPS tracking and cashless payments reducing their vulnerability to theft or fraud.
Methodolgy
Opinion Surveys
Polling for this report took place between May and July 2024. It included a nationally representative poll of 1,073 Bangladeshi consumers (“2024 Public First Consumer Survey”) and a poll of 262 Uber drivers (“2024 Public First Driver Survey”). In Bangladesh, the surveys were available in either English or Bangla.
Economic impact
Our total economic impact is calculated as the sum of:
- The earnings of drivers using the Uber App.
- The indirect and induced supply chain impact of driver spending to buy, run, and maintain their vehicles.
- The induced impact of spending by drivers through their earnings from Uber’s platform.
- The additional spending by Uber riders in local businesses, driven by the increased ease of transport.
- The value of the time saved using Uber.
Uber provided Public First data on driver vehicle types, as well as data on how often different vehicle models were used in trips. We used this data to allocate trips that took place on Uber Auto, allowing us to identify separately the estimate for the economic impact it created.
This measure is a gross estimate, looking at the total amount of economic activity supported by Uber in Bangladesh. It does not attempt to measure what would happen in a hypothetical scenario where Uber no longer exists. Our modeling does not include the impact of Uber’s direct investment or employment footprint as a company or any spillover effect this has on the wider tech ecosystem.
Impact of Driver Spending On Vehicles
To estimate average spending by drivers on vehicles, we drew on two main sources:
- The Public First 2024 Drivers Survey of 262 Uber drivers, asked them in detail their average spending on different categories, including purchase, insurance, cleaning, and maintenance.
- Uber provided us with data on the most common vehicle types, which covered all trips in Bangladesh on the Uber App in 2023-2024. This allowed us to estimate the average purchase price, fuel efficiency insurance and maintenance cost of vehicles using 3rd party sources.
In order to work out the wider supply chain impact of this spending, we multiplied these amounts by Type 1 and Type 2 multipliers, derived from an input-output table.
Impact of Additional Spending on Local Businesses
To estimate this, we added up:
- Additional spending from domestic riders. To estimate this, we drew on the Public First 2024 Uber Driver Survey, where we asked them how often they used Uber for different purposes, and how likely they would have been in each case to make the trip if Uber didn’t exist. The overall number of trips was calibrated with data provided by Uber on the total number of trips in Bangladesh in 2023, uprated to 2024 using 3rd party estimates of market size. We then combined these with estimates on average spend for different types of activity, and an economic multiplier to take account of wider spillover activity.
- Additional spending from international visitors. We drew on the estimates of Kim et al (2021) on the relative impact of Uber on average tourist spending, combining this with UN data on overall international tourist spending within Bangladesh.
Value of Time Saved
In the 2024 Public First Consumer Survey, we asked riders for the duration of their most recent trip with Uber, and how long the next best alternative would have taken. We combined this with existing Public First data on the average time saved using the Uber app, and calibrated against Uber’s internal data regarding the average duration of trips in Bangladesh.
We then multiplied the average time savings with Uber’s internal data on the total number of annual trips. This allowed us to estimate total time saved per year. Finally, we then calculated the monetary value of this using average hourly salary based on reported incomes from the same survey.
Increase in Driver Earnings
Uber provided Public First with data on total gross driver earnings in Bangladesh. We used data from 2023 and applied growth factors calculated using 3rd party estimates of market size to estimate driver earnings for 2024. In order to calculate additionality, we combined this estimate with data from the 2024 Public First Drivers Survey in which we asked drivers to estimate how much more they earned on average through the Uber platform than they would have done so through their next best alternative.
Consumer Surplus
The consumer surplus of a product or service is a measure of the increase in consumer welfare it creates. It represents the monetary value of a product or service, beyond and above the amount that has been paid for it.
Following the methodology of Brynjolfsson, Collis and Eggers (2019), we asked riders in the 2024 Public First Consumer Survey a single discrete binary choice question in the form to allow us to estimate the consumer surplus of Uber in Bangladesh:
“Now imagine you had to choose between the following options. Would you prefer to keep access to [Uber for ride-share] or go without access to [Uber for ride-share] for one month and get paid ₹X?”
The price offered was randomized between ৳34, ৳68, ৳135, ৳270, ৳540, ৳1,360, ৳2,700, ৳5,400, and ৳13,600.
We then computed both a linear regression of the results of this poll to derive a demand curve and the average consumer surplus per user, before multiplying by the overall number of Uber users in Bangladesh.