Summary

Not many know that nearly all of Pathao's shares is owned by a compan
y called Pathao Inc in New York.

Pathao has three tiers for compliance:
"Minimum Compliant" where a driver has a driver's license or NID, and 
vehicle registration paper;
"Business Compliant" where the driver has a driver's license, NID, vehic
le registration paper, insurance paper, tax token and for cars, fitness pape
r; and "BRTA compliant" where the driver has all of the above and more
, so as to be eligible for the BRTA enlistment certificate.

A project called Project Apollo was deployed by Pathao to increase com
pliance among drivers, and these are what the project found out:
"Majority of drivers are not compliant because of proper vehicle docume
nts" and "Strong communication strategy is a must here as drivers are les
s prone to update their documents".

Pathao's employees were laid off just three months after its closest local 
competitor Shohoz received Series B funding from six venture capital fir
ms.

Shohoz had received its first seed fund in 2015, the same year as Pathao, 
but while Pathao kept raising more and growing more for the following t
wo years, Shohoz became a formidable competition only last year, when 
the company raised USD 15 million.

“The heads of the teams hired as they wished,” several former employee
s alleged, "Whether we needed people or not.”
“I didn't know Pathao had such a big team,”
wrote Waliullah Bhuiyan in his Linkedin article.

Keep in mind, most of the growth companies died because of hiring - or 
wrong strategy of hiring. Startups die because they run out of money, an
d the biggest cost is the human resource. Hire only if necessary or you ca
n afford them with the existing runway. I think with $10 m investment, P
athao hired too many people assuming that they are going to raise anothe
r round after a certain time. When they couldn’t, they realized they need 
a longer runway and firing employees was the quickest way to increase t
hat runway.” But a company that was slated to “Disrupt” the traditional 
modes of doing business, ended up disrupting the industry in a way even 
they had not wanted.

Impact on Pathao and the consumers

The case details the founding of Bangladeshi logistics and ride -sharing
company Pathao. And all consumers and executives who are deeply
involved with this organization where the real impact is noticeable from
different angles between Pathao and the consumers. Not to mention the
success of Pathaoy at the beginning. Pathao is an organization that has
filled the gap of self-employment, of a large number of educated
unemployed youth in the country. Those who became helpless in life It
has lit the light of hope in their lives. But controlling over-employment
can sometimes be a huge challenge for a middle-income country. And
some of the media reported Pathao as an example of this. The illustrative
effects are discussed. First of all, the job security is lower here due to
which at different times they may be excluded or they are resigning
intentionally. Those who think of it as permanent employment are
suffering today. A massive part of Pathao’s Ride Sharing is regulated
from USA who used to fund Pathao at different times but in recent
times, their refusal to pay the fund which has led to unemployment and
job insecurity for various officials and consumers at the company. The
company doesn’t have investment and is unable to generate revenue.
Where a company is not able to provide revenue, how will that company
determine the future of its officers and consumers it actually causes a lot
of concern. Analyzing the context, it is seen that a small part of Shakib
now controls Bangladesh which was big before. Due to which various
inhuman and irrelevant influences and relationships can be noticed
between Pathao and the consumers at present. It is an employment
where the lives of both the consumer and the passenger are at risk. Many
people have had accidents at different times. I think unplanned
implementation is one of the main reasons for lack of adequate guidance
and unplanned control that is affecting consumers and the general
public. It can be seen by observing the survey 93 to 97 percent of
registered drivers don’t have driving license, NID, and vehicle
registration paper. As government don’t give permission to access
database, pathao can’t check whether the submitted NID and driving
license is real or not Overall on 19th week of 2019 out of 34,000 active
drivers only 15% have proper driving license, NID and vehicle
registration. Out of 2,38,877 registered drivers only 16% drivers were
active on average every week. Although the officials of the organization
have been vocal about this issue at different times, the organization itself
has never been active in this regard which has caused so many problems.
For this reason, they have facing many complaints as well. Above all I
think a sustainable organization always survives by ensuring the services
of the consumer officer and the receiving consumers. But Pathao
underwent a massive downsizing today.
The full reasons for which have been mentioned above.

Problems

 93 to 97 percent of registered drivers don’t have driving license, NID,

and vehicle registration paper.
 As government don’t give permission to access database, pathao can’t
check whether the submitted NID and driving license is real or not
 Overall, on 19th week of 2019 out of 34,000 active drivers only 15%
have proper driving license, NID and vehicle registration.
 Out of 2,38,877 registered drivers only 16% drivers were active on
average every week.
 Pathao couldn’t raise revenue and also don’t have sufficient funds
 Ex-employees also said that employees were laid off because foreign
investors pressurized the company

Solution
93 to 97 percent of registered drivers don’t have driving license, NID,
and vehicle registration paper.

Due to the inconsistency in pathao's maintenance, the company's

investments dropped drastically. In order to overcome these
complications, some vitals steps can lead to a better future for the
company. First of all, the registration policy of the company must be
improved. The NID, licenses and insurance checking process should be
strict. Therefore, the number of frauds can be numbered which will lead
to increased gain in trust from consumers. Pathao should set some other
rules for the activity of the registered drivers. Setting a goal for the
driver to complete within a week may increase the percentage in the
activity of the registered drivers resulting in increased revenue. The
recent accidents have caused pathao damage. Therefore, in order to
prevent such events pathao should set a driving practice session during
the registration process, to increase the efficiency of the driving, so that
the customers can enjoy the ride without any fear. Lastly, a policy
should be figured to increase the investment within the country to
increase the independency of the company, as foreign investors
pressurises the company to take steps which creates problems for the
employees.