Uber contributes Tk 4,500cr to economy in 2021

Uber has helped transform the on-demand economy for riders, driver partners, and the wider community by generating Tk 4,500 crore for the Bangladesh economy in 2021, according to a report by the ridesharing company.

The report, Uber's 2021 Bangladesh Economic Impact Report, researched and compiled by Public First, a UK-based policy research firm, was unveiled at an event in the capital on Sunday.

Salman F Rahman, the prime minister's private industry and investment advisor, was the event's chief guest.

As per the report, Tk 4,500 crore contributions included both the impact of earnings of driver-partners facilitated by Uber and the wider indirect and induced multiplier effect created throughout the company’s wider supply chain.

Rides on Uber’s platform produced Tk 70 billion in consumer surplus in 2021, roughly equivalent to 0.25 percent of the GDP of the country, the report stated.

According to Public First, the report dove deep into the factors behind the economic contribution, consumer surplus, how users benefit, and how driver partners gain from flexible work.

The report stated, that 95 percent of its riders considered comfort as an important reason for choosing to use Uber and in a year, it is estimated that Uber saves riders over 17 million hours a year.

Also, 73 percent of driver-partners said they were satisfied with Uber in 2021. It helps them earn an additional Tk 52.2 million in higher income through Uber or an average of 26 percent more than their next best alternative source of income or work.

Among female riders, 96 percent said that safety was an important factor in their choice to use Uber, and 72 percent of female riders agreed that it was easier now to get home late at night.

As much as 84 percent of riders without access to a car said that the availability of ridesharing services like Uber was essential to their choice of not owning a vehicle.

In total, the report estimated that one in six Uber trips was connected with public transport.

Salman F Rahman said, "Bangladesh is moving fast and this pace is accelerated by the technological innovations in the era of the 4th Industrial Revolution. We’ve materialized the dream of 'Digital Bangladesh' and are focused on achieving the 'Smart and developed Bangladesh' by 2041,"

"I am happy to learn about the positive impact of Uber on our transportation and economy. We’ll look forward to seeing Uber’s continued and impactful contributions in the years to come," he added.

He hoped there will be more foreign investments in the private sector as the country is going through massive infrastructural development.

"Uber has been an important engine of economic growth and opportunity in Bangladesh since 2016, but we never knew the extent of our contribution. This research shows for the first time the impact on drivers, riders, and the economy as a whole," said Mike Orgill, senior director, public policy and government relations, APAC at Uber.

"It reaffirms the importance of flexible work opportunities and how improved access to mobility is helping people move around safely and creating value for the Bangladesh economy," he added.

Among others, NM Zeaul Alam PAA, Senior Secretary, ICT Division, Bangladesh, Shiva Shailendran, Director, Regional Operation, Uber India South Asia, Jonathan Dupont, Partner, Public First, and other high officials of Uber was also present at the programme.