Professional Documents
Culture Documents
Uber Bangladesh 2019 1 10 317
Uber Bangladesh 2019 1 10 317
Bangladesh
East West University
Title of the Assignment: Value Delivery System and Value Chain of
UBER Bangladesh
MKT 201
Submitted to:
Submitted by:
Introduction 1
Recommendations 22
Conclusions 23
Appendix 25
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1. Introduction
UBER is an on-demand transportation service that brought a revolution in the global taxi
industry. The UBER business model has created this for people to tap their smart phones only
and a cab has reached their positions at the least possible time. 19 UBER is one of the few tech
companies in the world which is worth more than $50 billion dollars. UBER has already received
an equity fund of $8 billion and has 60 countries. UBER is an e-commerce service that connects
passengers with drivers. California-based companies work as middlemen for tenants and drivers
are ordered to order cars, taxis or other types of transport through mobile devices. Garrett Camp
and Travis are the brain initiatives and UBER cab founder in March 2009 as a founder of a
mobile phone application.12 The client application can use to submit a trip request that is sent to
automatically register the drivers around the user's location. Interested UBER driver can
communicate with the passengers and set up a pick-up. UBER is not a taxi service owner of any
vehicle for company service. UBER drivers are private car owners who use the platform on the
move. UBER works in 600 cities worldwide, including Dhaka, Chittagong and Sylhet.
UBER launched in Bangladesh in 22nd November, 2016. Now UBER is becoming a new way of
transportation with their luxurious facilities. UBER in Bangladesh listed three distinct roles
through which individuals could serve as a part of its ecosystem. These included (1) non-driving
partners, (2) drivers under partners, and (3) driver cum partners.19 To be a non-driving partner, an
individual (or service) would not drive but own vehicle(s) and manage one or more drivers. To
be a driver under partner, an individual would drive a vehicle that was owned by a non-driving
partner. Finally, to be a driver cum partner, an individual would drive the vehicle s/he owned. A
list of requirements was also mentioned under each category. A significant limitation was that
UBER drivers needed to have a special professional driving license (that came with a validity of
five years), unlike the non-professional driving license (with a validity of ten).
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Two kinds of non-driving partners featured in this assignment (1) private vehicle owners and (2)
“vendors” who operated Rent-A-Car services. UBER initially recruited drivers through these
services, which allow vehicle rentals (for a day or a few hours), necessarily with a chauffeur. 19
The rental fee depends on the distance traveled and is fixed through bargaining before the travel
is begun; a partial amount is deposited with the vendor. The vehicles that were part of such
businesses were either owned by vendors or registered with them by their owners. This was a
pre-existing business model that UBER used in Bangladesh. Another existing practice that
UBER preserved was of making payments in cash. Credit card payments were allowed in mid-
2017 but are yet to see wide uptake at the time of writing.
Logo
Slogan We will ride together
Helpline 09612111777
For the first time, smart phone maps, GPS tracking systems, smart phone payment payments or
even ratings and feedback programs have not been discovered. But they really are a well-planned
package of these technologies that established customers' favorites in the cloud computing
system; An interface where many programs can work together to serve a function.
UBER X: The most convenient and comfortable way to get around Dhaka. Whether we are
looking for a ride to a wedding, or simply want to sit back and stretch our legs, UBER has got us
covered. Choose UBER X when booking a ride, and go places in the comfort of a sedan. Fully
air – conditioned, four seater sedans available at your doorstep at the tap of a button. 19 UBER is
taking all the cars 1991 to 2005 Models are goes to UBER X.
UBER PREMIER: UBER strive to make every ride for each one of our hundreds of thousands
of riders a truly amazing experience.2 Introducing PREMIER – business class experience with
UBER. After months of preparation and feedback, UBER Bangladesh was thrilled to introduce
this ride option for the masses. Sylhet Sixers’ and current and ex-national stars Sabbir Rahman,
Hasibul Hossain and Faruque Ahmed were some of the first to use PREMIER as they made their
way to their team office for a meeting back in 2017 and that was the launch of the new UBER’s
new service line.4 PREMIER has been crafted for you, with your feedback, and incorporating
everything you’ve appreciated in your rides with us and our driver-partners. 16
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UBER takes all the sedan cars 2006 to Above Model are goes to PREMIER. Some Exceptional
sedan cars we take below 2006 above 2001 which is allion, premio,Axio, Nissan blue bird, Ford.
We don’t onboard any probox, Succeed, Tata indigo, hatchback cars for PREMIER.
UBER XL: UBER XL is an inexpensive car service. UBER XL is the car service consumers
who is with a bunch of friends, going out with the whole family or simply need a more spacious
ride without charging extremely high price. UBER XL can pick up at least 6 people - including
yourself - after requesting an XL. Cars that we take for UBER XL are Toyota Noah, Toyota
Voxy, Kia Sorrento, Toyota Highlander, Ford Explorer, Hyundai Santa Fe, Ford Flex, Toyota
Sienna etc
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UBER MOTO: UBER has come full circle. Along with affordable and comfortable sedan rides
in UBERX and PREMIER, now bring consumers something for everyday convenience.
Introducing, MOTO with Dhaka being one of the busiest cities in the world, there is no better
way to zoom through traffic and save time other than with MOTO and, there is no one better to
kick- start our journey other than our national cricketing legend, Mashrafe Bin Mortaza.19
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Mashrafe took the first MOTO ride in Dhaka city. Being an avid fan of bikes, he was very
satisfied with his first experience and is looking forward to how MOTO would add even more
dimension to how the city moves.6
UBER Hire: UBER hire, Riders can book long-term trips around the day-to-day meetings,
shopping or just around the city. 19"We always think innovative ways to increase the experience
for our riders and driver partners, this service aims to book a UBER for long-term travel to meet
the unique travel needs of the city, especially tourists, business travelers, senior citizens and
working professionals. Keeps a comfortable and cost-effective Price travel experience, "said
Arpit Mundra, General Manager, UBER Dhaka.10
UBER is a hyper-local offer for the Dhaka market, and this is a great way to explore and explore
the beautiful city. It's a fast level, a business trip or a day-long trip to explore a city, what's great
feedback in other cities of UBER hire that it manages (Bass, 2018).
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UBER Intercity: UBER introduced Intercity services targeting mostly those who need business
trips to factories in the outskirt of Dhaka and those who need occasional day out trips outside
Dhaka city.11 Mainly tis service is available in Dhaka and its surrounding districts. These new
services might be considered as proofs that UBER has sensed commercial prospects in
Bangladesh.
Price for UBER Intercity depends on the time, distance and the destination of the passenger. The
return trip also comes into account when we price it.
UBER has 14 core cultural values and 8 qualities that all UBER employees are expected to
possess.
• UBER's mission
• Celebrate the cities
• Eligibility and hose
• Principal conflict
• Winner: Champion's mentality
• Let's build the builder
• Will always be hustling’
• The customer is indifferent
• Create Big, Bold Bikes
• Create Magic
• Be an owner, not a tenant
• Be yourself
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• Optimistic leadership
• Avoid politics 4
The Table 2.2 above shows that UBER services are initiated by customers/passengers through
their UBER app-based requests which are processed by UBER services system and then
broadcasted to nearby drivers. The driver, upon accepting the request, keeps communications
with requesting passenger for a seamless pickup experience. 19 After completion of the trip, driver
receives fare through cash/card payment and then both driver and passenger can provide
feedback and/or rate the trip experience. These basic services principles are followed by UBER
around the world including Bangladesh.9
UBER Bangladesh is of the leading transportation service in the country. In a country where 36
percent of the population lives in the 3 biggest city they are actually doing very well against the
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competition. To stay relevant and to satisfy the consumers UBER has done a great work in
analyzing the value delivery system.
To understand the value delivery process of UBER Bangladesh we have to know what the value
delivery process is. First, choosing the value is the “homework” marketers must do before any
product exists. They must segment the market, select the appropriate target, and develop the
offering’s value positioning. The formula “segmentation, targeting, positioning (STP)” is the
essence of strategic marketing. The second phase is providing the value. Marketing must identify
specific product features, prices, and distribution.2 The task in the third phase is communicating
the value by utilizing the Internet, advertising, sales force, and any other communication tools to
announce and promote the product.
Segmentation: The segmentation of UBER is quite simple UBER uses a mix of demographic
and geographic segmentation variables which helped the company pricing its services
accordingly.
Both geographic and demographic segmentation is important because UBER needs to know
which areas to target for customers who are ready to use an “on order transportation service”
over public transport services. You will not find UBER in Rural areas but mainly in urban areas
only where it replaces taxis.
Targeting: UBER differentiate from its competition by offering better price and service to the
consumers. UBER mainly targets the people living in the cities and also are interested in inviting
new technological advances in their lives. We can see that mainly the young demography are
using the services also we can find people who are middle aged are using the service. UBER uses
multi-segment type of positioning and accordingly, targets several customer segments with
different levels of service. The ride-hailing giant offers economy services such as UBER X,
UBER XI and UBER Pool for cost-conscious customers. At the same time, UBER PREMIUM
consisting of fleet of stylish vehicles is available for customers who don’t mind to pay more.
Positioning: User benefit based and pricing positioning strategy is used by UBER to attract
customers from different strata of the society. Because day to day travel is a huge cost to
customers, positioning on the basis of Economy makes a huge difference in the mindset of the
customers. Also we can see their service is much better than their competition. Their apps and
the online service is excellent and people really get a sense of satisfaction when using the
services of UBER. Also the name UBER has a great impact on its positioning as it is an
international brand so people finds much comfort in their promises.
Easiest way around: Previously in Dhaka city there were not any transportation like UBER.
One tap and a car comes directly to you. Also the driver knows exactly where to go and when
you get there just step out and complete the payment seamlessly. Also the UBER app is a one
stop center for all kinds of vehicles need for a person. If a person is will to move fast, cheap and
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alone then he can call an UBER Moto or if we wants to move with family or friends and require
a little bit of luxury then he can call an UBER Premium.
Anywhere anytime: UBER is helping people of the megacity of Dhaka by providing facilities to
go anywhere, anytime in the city. Daily commute, across town, early morning flight, and late
night events, whatever there is UBER is present and providing service 24 hours a days.
Service to Consumers: We can see people who are the UBER service providers are always on
their best manner and cooperative in every scene. They keep their vehicles clean and well-
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polished. Safety is a core belief in the UBER community and UBER service providers always
put safety first. We can see this specially in women users who has faith in UBER.
Low Cost to Luxury: We can find cars vehicles ranging from one person, cheap rate to multiple
person usage luxury cars. These services are found on demand of the customers.
Communicating the value mean tell the target market about the value proposition and how the
target market will get the desired satisfaction. We can see that UBER is promoting their service
in many forms of marketing. We can see them in billboards, news prints, leaflets etc. They are
also promoting in many forms of social media and internet. We can see the advertisement of
UBER in Facebook, Instagram and in many sites as well. Many games also promote the ads.
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UBER has also reached out to mass people with their superior service in affordable prices and
focusing on safety as the primary touch point by introducing Sakib Al Hassan as the brand
ambassador of UBER Bangladesh.
To understand the value chain of UBER Bangladesh we first need to know what a value chain is.
Harvard’s Michael Porter has proposed the value chain as a tool for identifying ways to create
more customer value. According to this model, every firm is a synthesis of activities performed
to design, produce, and market, deliver, and support its product. Nine strategically relevant
activities— five primary and four support activities— create value and cost in a specific
business.
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UBER Inbound logistics: Generally, inbound logistics involves receiving and storing raw
materials. UBER, the largest taxi technology company in the world, does not own the vehicles it
uses to serve customers. The vehicles are owned or rented by UBER drivers, who are not
employees, but contractors. UBER drivers need to possess smartphones to use UBER app
software. UBER users, i.e. customer also must have access to a smartphone or mobile website to
be able to use the service.
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Therefore, value addition in UBER inbound logistics relates to internet-based nature of business
operations and the business model of the company. Specifically, thanks to its business model,
despite the large size of the business, UBER inbound logistics is only limited to mainly hardware
and office equipment needed to sustain the business.
UBER Operations: UBER operates in more than 760 cities worldwide. The usage of UBER
services involves the following stages:
1. Requesting the ride. Customers can use UBER app to tap each ride option to see wait
time, size, and price. Customers can enter their pickup location and tap-request for their
driver to arrive in minutes.
2. Ride. Customers are able to see contact information of their driver, as well as, vehicle
details on the app. This ensures that customers get into the right car.
3. Pay and Go. When they reach their destination, customers simply hope out of the car and
rate their driver. Customers don’t need to have cash or credit cards with them; UBER
automatically charges credit card on file.
UBER operations are highly sophisticated and customer-centric thanks to its app equipped with
advanced functions and capabilities. Therefore, it can be argued that UBER app is one of the
main sources of value in UBER operations.
UBER Outbound Logistics: Outbound logistics in value chain analysis is associated with
warehousing and distribution of products. Outbound logistics does not fully apply to service
sector such as ride-hailing due to inseparability of delivery and consumption of services. As
discussed above, UBER operates in more than 600 cities worldwide and internet-based nature of
its business model is a major source of value for the global taxi technology company.
UBER Marketing and Sales: The ride-hailing giant mainly relies on social media marketing
and word-of-mouth marketing to communicate its marketing message to the target customer
segment. Moreover, UBER uses print and media advertising, sales promotions, events and
experiences and public relations as part of its marketing strategy. Convenient payment method is
a major source of value addition for the company. UBER automatically charges the credit card
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registered with the app. Therefore, Customers don’t have to have cash or credit card when they
reach destinations.
UBER Service: High level of customer service is one of the core competitive advantages for
UBER. Good customer service is effectively integrated into UBER business model. Riders rate
their drivers on the scale of 1 to 5 after each journey and accounts of drivers with average low
riding scores are promptly deactivated. Drivers therefore have an incentive to maintain a clean
car and provide good service.
Each ride receipt includes a map and a GPS track. Customers can complain if their driver took a
longer route to reach the destination. UBER is assessed to be prompt in issuing refunds in such
situations.
The support activities play an important role in coordinating and facilitating the primary value
chain activities. UBER also benefit from analysis of its support activities as explained below.
UBER Firm Infrastructure: The firm infrastructure denotes a range of activities, such as-
quality management, legal matters handling, accounting, financing, planning and strategic
management. Effective infrastructure management can allow UBER to optimize the value of the
whole value chain. UBER can control the infrastructure activities to strengthen the competitive
positioning in the market.
UBER Technological Development: In a modern, technological advanced era, almost all value
chain activities depend on technological support. The technological integration in production,
distribution, marketing and human resource activities requires UBER to realize the importance of
technology development. It can be divided into product and process technological development
activities. Some examples are- automation software, technology-supported customer service, and
product design research and data analytics. The research and development department of UBER
is classified in this category.
Procurement: The procurement in value chain denotes the processes involved in purchasing the
inputs that may range from equipment, machinery, raw material, supplies, raw material and other
items necessary for producing the finished product. Due to its linkage with multiple value chain
activities, UBER should carefully consider its procurement activities to optimize the inbound,
operational and outbound value chain.
UBER is competing in a market which is highly contested by other competition like PATHAO.
To stay relevant in the market UBER utilizes their value chain and the excellent value delivery
system. We can see that UBER ensures the high customer satisfaction by keeping thir promises
and even delighting the customer. Some of the ways UBER is delivering superior customer value
are
Convenience
Service to consumer
Safety
Transparency
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Earnings
5.1 Convenience
UBER service is mostly used by app on mobiles. The app that they have designed is very
simplistic and is very easy to navigate. The average wait for an UBER ride is only about four
minutes and 10 seconds. UBER’s ability to create and develop mapping technology has allowed
the company to connect drivers and passengers quicker than ever. The technology also helps
drivers get customers to their destinations the quickest ways — although drivers are usually
versed in how to get around their cities and are willing to follow customers’ directions. UBER
removed a lot of the friction in getting places. Customers can move on their schedules — not on
a bus or train schedule. Customers don’t have to find a ride to hail. They press an app and the
ride finds them, almost anywhere and anytime.
UBER has different types of transportation services for different use and also for different
economic purposes. We can see the value that UBER Moto has added to the people who wants to
move quickly and alone with the cheapest. Again UBER premium is adding value to the
customer who wants luxury in their travel. As like UBER Moto, UBER Premium we can see
UBER XL, Hire, Intercity is adding satisfaction to the lives of the consumers. We can see in
different occasions and also based on usage UBER gives PROM codes to customers which
brings them discount.
People already has a mind set about UBER. The mindset is that their service providers’ i.e the
drivers are always well-mannered and has a great attitude to the customers. They registration for
a vehicles or drivers is also very much seamless done as the UBER head quarter employees are
well trained in customer interaction. The vehicles of UBER are also very much kept clean and
polished.
5.4 Safety
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UBER’s core company policy is to ensure the safety of the drivers and also the consumers.
Whenever we set a pick up point it saves tall the information about the order placed. We can see
that their app also has the feature to report any misconducts or accidents. We customers can
report other things like checking the fairness of the payment and other problems that a customer
may face.
5.5 Transparency
Customers can rank their drivers, and drivers can rank their customers after every trip. The
drivers’ overall satisfaction rankings show up on the app, along with their photo and the type of
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car they drive, so customers know exactly who they’re dealing with. If a driver ranks a customer
lower than a 3 (on the 5-point scale), UBER will never match them again. It knows some people
just shouldn’t work together. Plus, UBER has expectations for how their company is presented.
Inspectors check that cars are fewer than 10 years old, clean, have limited wear, are insured and
are inspected before a driver can use them to pick up customers.
5.6 Earnings
We have seen that many young people are using UBER to earn some money as a per time job.
Also many drivers and vehicles owners using UBER to earn a decent living too. It is seen that an
average full time driver can earn more than 60,000 BDT a month. Also if anyone pushes for
more than can earn even greater than that. UBER generally take 25 percent for their service and
the rest stays in the hand of the drivers. It is a great way of earning for an emerging economy like
Bangladesh.
A customer review is a review of a product or service made by a customer who has purchased
and used, or had experience with, the product or service. In Bangladesh it is very difficult get
actual reviews of customers which is authentic and clear. The use of technology has given the
people the power to share their experience of the product with the company and also with the
people. This helps the company to listen to their consumers and help them to give a more
satisfactory result
The reviews that are going to be discussed are found from Facebook, UBER’s site and other
independent sites too. Some of the reviews are given below.
We can see that the official site of UBER asks the customers to review their experience
and rate their service from a rating between 1 to 5. We can also see that customers can
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also relate their experience with others by finding the reviews by matching with the key
words given in the bottom of the figure.
On the next review (Fig 6.2) we see that the customer is complaining about the waiting
time for getting a ride confirmation.
Fig 6.2
On the next review (Fig 6.3) we see that the customer is complaining about the UBERs
GPS system and how it is charging unfairly.
Fig 6.3
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There are many instances where customers shared their positive experiences and also
suggested or showed the vibe for how can the experience get better. One of the reviews
that highlighted this fact is given below
Fig 6.4
7. Recommendation
UBER may have an international standard system for conducting their business, but there is
always some room to grow. In Bangladesh UBER has faced some difficulties and they can solve
them if the following recommendations are followed—
UBER needs to adjust its algorithmic approach and regulating policies to make its
services attractive for both the vehicle owners and the drivers. The policies need to be
context sensitive and in order to ensure this UBER needs to follow the ‘Ridesharing
Services Principles, 2017’ enacted by the Government of Bangladesh. 19
UBER should readdress its surge pricing algorithm because due to this algorithm
sometimes UBERX passengers need to pay higher fair compared to what is required by
UBER Premium services for the same ride. This creates dissatisfaction among the
UBERX passengers who are habituated to request UBERX services for a comparatively
cheaper ridesharing which UBER promises.
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UBER should negotiate with the mobile phone operators to rectify the GPS signal issues
so that passengers and/or drivers can overcome the problems they face with regard to
operating the UBER App.
UBER should take initiatives to train the drivers so that passengers can enjoy a
professional service instead of just the driving assistance. Although these drivers are not
always fulltime UBER employees, but as they represent the UBER brand therefore
UBER needs to take the responsibility to ensure professionalism through the way its
drivers offer services
UBER should change its recent approach of motivating only the new users because
existing frequent users/passengers feel ignored which in the long run might affect its
image and profit earnings. UBER should also focus on maintaining a consistent
complaint management for both the drivers and passengers.
8. Conclusion
It can be argued that UBER services in Dhaka city has an overall positive impact in terms
of assisting physical mobility for both men and women amidst sometimes inconsistent
traffic situations. It is also apparent that UBER has become an option for a handsome fair
income with freedom especially for those drivers in their 20s, although UBER could not
go beyond the structural patriarchal norm as no women driver has been found offering
UBER services in the Dhaka city. UBER stimulated related other businesses including
automobile workshop, manufacturers and marketers of automobile related products,
financial institutions, and mobile network operators. However, customer/passenger and
driver experience of UBER services show a mixed response and sometimes these services
appear to offer a feeling of entrapment than empowerment which can be attributed to the
algorithms and policies UBER follows in Bangladesh
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9. Appendix
4. Parvin, N and Kumar, N and Morshed, M, (November 2018), UBER in Bangladesh: The
Tangled Web of Mobility and Justice, Slide Share
https://www.researchgate.net/publication/328129797_Uber_in_Bangladesh_The_Tangle
d_Web_of_Mobility_and_Justice
5. Slavulj, M and Kanizaj, K and Durdevic, S,( May 2016 )The Evolution of Uber
Transportation- UBER, Slide share
https://www.researchgate.net/publication/305278247_The_Evolution_of_Urban_Transp
ort_-_Uber
6. Alam, M and Imran, A, (April 07, 2018) Business Strategy of UBER in Bangladesh
https://www.slideshare.net/MohammadMahbubAlam/ism-term-paper
7. Jobbar, R (May 19, 2019) Ride- Sharing in Bangladesh : Disrupting the way we
commute IDLC BUSINESS MAGAZINE, https://idlc.com/mbr/article.php?id=125
12. https://www.sitejabber.com/reviews/uber.com
13. McGovern, M (January 27, 2017) 3 Things Customers Wants the Most ,Insight
https://www.customerexperienceinsight.com/the-3-things-customers-want-most-and-
lessons-from-uber-on-delivering-them/
14. https://www.glassdoor.com/Reviews/Uber-Dhaka-Reviews-
EI_IE575263.0,4_IL.5,10_IM1237.htm
15. Lulu C. (May 25 2016). Uber continues its quest for world domination with expansion
into Bangladesh..https://www.digitaltrends.com/mobile/uber-expands-into-bangladesh/
16. Uber blog (15 september) Introducing PREMIER – A Step Above The Everyday Ride
https://www.uber.com/en-BD/blog/dhaka/dhaka-your-ride-choices-are-arriving-now/
18. Nadine F. (2 Febuary 2017). TMeet the fast-growing Go-Jek of Bangladesh. News
Article. .https://www.techinasia.com/pathao-go-jek-bangladesh.
19. Atia, T (2018) Partners and drivers attraction of UBER Bangla desh, Brac University,
Dhaka
http://dspace.bracu.ac.bd/xmlui/bitstream/handle/10361/12221/16364037_MBA.pdf?
sequence=1&isAllowed=y