Uber contributed BDT 45 billion to Bangladesh’s economy in 2021: Report

Uber’s 2021 Bangladesh Economic Impact Report, researched and compiled by Public First, a UK based policy research firm, was unveiled today at an event in the national capital. The Report highlights how Uber has helped transform the on-demand economy for riders, driver partners, and the wider community by generating BDT 45 billion for the Bangladesh economy in 2021.

It deep dives into the factors behind the economic contribution, consumer surplus, how users benefit, and how driver partners gain from flexible work. Key findings of the Report include:
Contribution to the Bangladesh economy
● Uber contributed an estimated BDT 45 billion to the Bangladesh economy in 2021. This includes 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 BDT 70 billion in consumer surplus in 2021, which is roughly equivalent to 0.25% of the GDP of the country

Impact on Riders and Drivers
● 95% of riders say that comfort is an important reason for choosing to use Uber. In a year, it is estimated that Uber saves riders over 17 million hours a year. In fact, as per Bangladeshi riders, ridesharing is the most significant transport innovation they have experienced in the last decade
● 73% of driver-partners said they were satisfied with Uber in 2021. It helps them earn an additional BDT 522 million in higher income through Uber or an average of 26% more than their next best alternative source of income or work.
Impact on Communities – Safety & Improving Access
● 96% of female riders say that safety is an important factor in their choice to use Uber, and 72% of female riders agree that it is now easier to get home late at night
● 84% of riders without access to a car said the availability of ridesharing services like Uber was important to their choice of not owning a vehicle
● In total, we estimate that 1 in 6 Uber trips connect with public transport

Commenting on the unveiling of the Report, Honourable Salman F Rahman, Private Industry and Investment Adviser to the Prime Minister, said, “Bangladesh is moving fast and this pace is accelerated by the technological innovations in the era of 4thIR. We’ve materialized the dream of “Digital Bangladesh” and are focused on achieving the “Smart and developed Bangladesh” by 2041-culmination of Golden Sonar Bangla as envisioned by the father of the nation, under the able leadership of our Honorable Prime Minister Sheikh Hasina. To achieve that goal, we need more brands like Uber to come forward and partner with us in this journey ahead. I am happy to learn about the positive impact of Uber in our transportation and economy. We’ll look forward to seeing Uber’s continued and impactful contributions in the years to come.”
Commenting on the report, Mike Orgill, Senior Director, Public Policy & Government Relations, APAC at Uber, said: “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. 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. It makes our resolve stronger than ever before to continue working for our communities and deploying our technology and global expertise to build a ‘Smart Bangladesh’.”
You can read the full report, including the methodology here.
*One of the most important measures of economic welfare – the amount you would pay someone to voluntarily give up a good or service. If a good has a zero consumer surplus, that implies we can take or leave it – whereas goods with a high consumer surplus are playing an important role in our lives.