Monday | 7 October 2024 | Reg No- 06
বাংলা
   
Monday | 7 October 2024 | Epaper
BREAKING: ● Four die, 1225 patients hospitalised with dengue      ● 105 children killed in mass uprising      ● Saber Hossain Chowdhury arrested      ● 50,000 people marooned as over 100 villages flooded in Netrakona      ● Preliminary list of 735 martyrs killed in July-Aug mass uprising published      ● Mahmudur Rahman demands banning Chhatra League in a week      ● Israeli strike on mosque in Gaza kills 26      

Ride-sharing: A double-edged sword for our labour force

Published : Wednesday, 29 May, 2024 at 12:00 AM  Count : 1057
Kazi Nazifa Dilruba, Raffat Shabnam Urbee; Md Nazmul Haque Shapon
Earlier this year, Uber shared a research report suggesting about 300,000 women are expected to enter the labour force within the next four years. This large entry of the labour force is expected to have a massive impact on the economy as those previously reluctant to work will be participating in the economy. Ride sharing services like Uber, Pathao and O Bhai amongst many are rapidly transforming the transportation landscape of Bangladesh since 2016.

Shuttle, another ride sharing service exclusively for women, has also played a significant role in ensuring safe transportation for both female students and job holders since 2018. Availability of ride sharing services is credited for making travelling safer and more attainable to the women of the country. While their role in providing convenient and affordable alternatives to traditional transport systems is well recognized, the impact these services have on the nations workforce is noteworthy.

Workers who were previously struggling to make ends meet find these apps to be nothing short of a golden ticket. Ubers annual report for 2023 suggests that on average, an Uber driver has a gross monthly income of Tk. 60,000. This is a significant boost compared to the capitals average monthly income of Tk. 30,000. While highly skilled graduates from the most reputed institutes across the country struggle to find a decent job, the ride sharing platform presents a ray of hope particularly for those lacking any vocational training.

The little barrier to entry largely benefits those struggling to find traditional work or are seeking an additional source of income. The flexible work hours and the financial incentives offered by these platforms provides opportunities to students, stay at home parents and retirees to participate in the economy and grants them financial independence. The emergence of these platforms acts as a lifeline for those who would not have been able to participate in the formal workforce otherwise.

As with every other good thing, the rise of ride sharing services also comes with a cost and traditional autorickshaw drivers are the ones to pay the price. Once a dominant force in the transportation industry, now face a significant decline in their earnings as alternate transportation modes occupy market shares. According to various reports, these autorickshaw drivers have seen their income drop by two-thirds of the usual amount.  Statements from Shakhawat Hossain Dulal, secretary of the Dhaka Auto Rickshaw Workers Union mentions that just a year after ride sharing services entered the market, in 2017 their daily incomes had fallen by a third dropping from about Tk1,000 to around Tk300.

Another group of people who are affected by this platform are business owners who rely on cheap labour for low skill jobs. The lucrative wage rate and working conditions may shift labour supply from traditional jobs to the transportation industry. This is expected to have a domino effect as the surplus demand for labour will force businesses to increase wages raising the cost of production. On the other hand, companies failing to cope with this increased expenditure may go out of business. This will put the livelihoods of those who rely on these jobs at risk.

It is undeniable that the ride sharing platform has made transportation more affordable and convenient for Bangladeshis. However, the impact they have on the labour force is a pandoras box. While a portion of the labour force is benefitted by the increased income and flexibility, others face challenges adopting this new era of transportation. It is crucial that studies are conducted to shade light on the long term impacts of these platforms on job creation and wage differentials across the broader labour market. Otherwise, it will be difficult to ensure that the ride sharing revolution is beneficial to all and not just a selected few. Policymakers may come up with support programs or regulatory measures to facilitate the transition for those whose livelihoods are impacted by the changing transportation industry.

The writers are Masters students of the Department of Economics, East West University



LATEST NEWS
MOST READ
Also read
Dengue scourge taking a turn for worse
Our art market should expand 
Response to flood-hit areas must be well organised
Reintegration of our returnee migrants crucial  
Rising drug addiction throws our youths into jeopardy 
Repatriation of Rohingyas still not in sight 
Banking sector reforms and some proposals
Class struggles continue to widen
Editor : Iqbal Sobhan Chowdhury
Published by the Editor on behalf of the Observer Ltd. from Globe Printers, 24/A, New Eskaton Road, Ramna, Dhaka.
Editorial, News and Commercial Offices : Aziz Bhaban (2nd floor), 93, Motijheel C/A, Dhaka-1000.
Phone: PABX- 41053001-06; Online: 41053014; Advertisement: 41053012.
E-mail: info©dailyobserverbd.com, news©dailyobserverbd.com, advertisement©dailyobserverbd.com, For Online Edition: mailobserverbd©gmail.com
🔝