Ride-sharing guidelines: Rules or restrictions?

The government’s guidelines regarding the new app-based ride-sharing businesses in Dhaka are less like supervision and more like efforts to exert control, say drivers, owners and some entrepreneurs.

Ride-sharing service SAM began operating the first motorcycle-based ride-sharing service in the Bangladesh capital in May, 2016. SAM executives claim that though they had gone to the BRTA and various ministries for permission to start their business, in most cases they were unable to even speak to an official.

They began their business after sending a letter to seven ministries stating that they would be willing to follow any regulations that were established in the future. But the BRTA ordered them to halt their operations afterwards in a notice published in the newspapers.

Mobile app-based service Uber began operating in Dhaka on Nov 22 of that year. The BRTA also published a notice ordering the company to halt service, calling it ‘illegal’.

Another ride app named Pathao also gained popularity around that time. Shohoz.com, which had started out selling bus tickets, also launched an app soon after. Cholo, Amar Bike, Amar Ride and various other companies have also entered the industry since.

Congestion-prone Dhaka has nearly 300,000 private cars, which are regularly blamed for the heavy traffic. Though several taxi services have attempted to operate in the city, their popularity has been limited by prices, which are too high for ordinary citizens. The CNG autorickshaws that operate in the city are infamous for turning off their fare metres and charging high prices. The new app-based services allowed middle class citizens to make use of cars on the road.

The BRTA submitted a draft of regulations for mobile app-based transport services in February 2017. The BRTA sent the draft to the Ministry of Road Transport and Bridges on Jun 21 of last year. It received the government’s final approval on Jan 15.

Drivers have objected to the regulation restricting drivers to working for only one ride-sharing company at a time, saying it defeats the main purpose of the system.

“If we can only use one app it will be bad for us,” bike service rider Md Hanif told bdnews24.com. “Then the company will have influence over us and we will have to listen to them.”

“Why should we have only one app?” said another rider named Abdul Quayyum. “I should be free to work with whatever app I want at any time.”

SAM founder Imtiaz Kashem said the BRTA had made a ‘mistake’ in the guidelines it established.

The regulation makes drivers and bike riders into de-facto employees, he said.

“Think about an employed driver who wishes to take two requests a day. But the company, which has to compete with several others, sends 10 requests a day.”

“If they are restricted to only one app, there will be a difference between the person who takes 10 fares a day and the one who takes two. The person who takes two requests will get a lower rating and may have to leave the market. They can no longer work in the industry. Only those who take it on as an occupation will be able to survive.”

“The riders and drivers will thus be beholden to the company and the company to the BRTA. Instead it should be free,” he said.

“A driver is a freelancer,” another entrepreneur working in the industry said. “The regulation goes against the right of a freelancer to work for more than one company, and reduces their income.”

“All of them will flock to the big companies in the hopes of getting more requests.”

Imtiaz also complained about the industry falling into the hands of foreign companies.

“The government stopped us when we attempted to start the industry. But when a large foreign company came in, they were unable to stop it. Now the market is controlled by the foreign company. This would not have happened if they did not stop us.”

“The large companies want the smaller ones to fail so they do not have to face any competition.”

Uber and Pathao did not comment on the new guidelines.

Touheedul Islam, who works at a private company providing cars for ride-sharing, also objected to the regulation.

“Ride-sharing had solved the middle class’s transport problems. But if those who provide the cars are disincentivised, we will return to the old status quo and people will suffer again.”

“If a car cannot operate for two apps earnings are reduced by a third. Nobody will want to use their cars for these services if we do not get enough trips.”

OTHER OBJECTIONS

The regulations have also eliminated the competitive environment in the industry and established an oligarchy for the largest companies, one entrepreneur said.

They questioned a driver’s need for a separate ride-sharing certificate if they already had a national ID card and a driver’s license and objected to the requirement of a written contract between car owners and companies.

“No other country in the world requires this.”

It is impossible to sign such contracts with the thousands of drivers, they said.

“It is an online service. It is possible to do it all over the app. They can join by signing the terms and conditions.”

The Tk 1,500 fee for a three-year license was too much, they added. Those who join up are unemployed, job seekers, students and those looking for a little extra income and are unable to pay Tk 1,500, they said.

The entrepreneur said that it stifled the growth of the industry.

They also objected to the BRTA’s requirement to submit a list of drivers.

“They say ride-sharing companies have to send the list of their drivers to the BRTA … the drivers are the property of the ride-sharing company. If we give this information to the BRTA there will be a struggle over drivers.

Others objected to the restriction that prevented people from engaging in ride-sharing work until a year after registration and the restriction preventing a person from operating more than a single registered ride-sharing vehicle.

SAM’s Imtiaz complained that the regulations had turned the ride-sharing companies into taxi services. When it was pointed out that ride-sharing service operate similarly to taxi companies, he said the situation is different in South Asia and Southeast Asia.

“Those who are unemployed and have a car offer their service. No one buys a car to become an Uber driver. No one leaves their job to work for Uber. The situation is different.”

PASSENGER SAFETY

Many customers have also called for more protections regarding customer safety.

“If I was allowed to make the guidelines I would limit the scope,” said online activist Leena Parvin. “I would not let just anyone register. I would set qualifications.”

“I would set out clear guidelines concerning passenger safety. There need to be regulations regarding passenger harassment. The companies must also have clear guidelines regarding recruitment and training.”

Businessman Mosharraf Hossain Moshu said that the guidelines have lots of unnecessary regulations but overlook important ones.

In his opinion it is important to account for the skills of drivers, their mental health and whether they have committed any criminal offences.

Lots of safety issues have been overlooked, said Dhaka University student Morshed Rahman Jubaiyer.

“There should be very clear passenger safety regulations,” said Dhaka University student Waheeda Zaman. “Sometimes registration is done under one license, but it doesn’t match the nameplate.”

“Everyone sets different prices, but the quality of services is about the same,” said former student leader Bapadditya Basu. “This should be fixed.”

REVISION ‘POSSIBLE’

BRTA official Md Shajahan Kabir told bdnews24.com that the agency is working to implement the guidelines.

“Many of the companies have submitted applications and we are scrutinising and finalising them. Then we will begin enlistment at the individual level.”

BRTA Chairman Md Moshiur Rahman was contacted for comment on the story, but did not answer calls.

“We made the guidelines, but the BRTA will be able to say how well they are working,” said Road Transport and Highways Division Joint Secretary Dr Md Kamrul.

“They can be changed, revised or corrected. We will do so if the BRTA submits a request.”