Bangladeshi bike‑taxi drivers abandon apps for street hailing

In early 2022, Bangladeshi motorbike drivers faced commission rates as high as 25% on ride‑hailing apps such as Pathao, Uber, Shohoz and OBHAI. After fuel costs, many drivers earned little or nothing per trip, prompting them to stop using the apps and return to traditional street‑hail services where they could negotiate fares directly and keep the full amount.

The shift boosted drivers’ take‑home pay and allowed more trips per day, but it also raised safety issues because offline trips lack app‑based tracking, helmet enforcement and emergency support. Companies responded with limited commission cuts (e.g., Pathao’s 10% peak‑hour rate) while drivers’ unions continued to push for under‑10% fees and formal worker recognition.

Drivers reported higher take‑home pay, instant cash payment, and the ability to make more trips per day by negotiating fares directly with passengers.

High commission fees (up to 25%) made app‑based rides unprofitable after fuel and other costs.

Drivers valued instant cash payments and the ability to negotiate fares directly, which increased their daily earnings and trip frequency.

The lack of regulatory oversight and driver protections meant platforms could impose high take‑rates without accountability, pushing workers to seek alternatives.

When platform fees exceed workers’ margins, they will exit the platform and seek alternative channels; platforms must keep take‑rates low enough to sustain labor supply.

By mid‑2022, many drivers had abandoned apps for months, while some companies like Shohoz and OBHAI shut down their bike‑taxi services. Pathao reduced commissions to 10% during peak hours but kept off‑peak rates up to 15%, and Uber maintained a 25% fee. Driver unions continued to advocate for under‑10% commissions and formal worker status, while safety experts warned that offline trips increase risks of theft and lack of emergency assistance.