Dhaka citizens lose 3.2 million working hours of traffic congestion daily.
Both the government and private sectors are trying hard to make a dent on the “traffic jam issue”. Infrastructure projects like flyovers, Metro are underway to build capacity, and smart ride-hailing startups like Jatri, Paathao, Shohoj, etc. are trying to save the time people waste waiting for their ride.
However, there is third emerging momentum that, if strategically used, may prove to be instrumental in reducing the traffic on Dhaka streets. The emergence of Service Delivery Startups like BKash, Deligram are minimizing or even eliminating the need for a certain category of trips for certain demographics. We call these “First Mile” Solutions, Solutions that bring services at the door-steps of the citizens, thus eliminating the need for them to travel.
Three market forces have aligned to make this a compelling proposition. The technology enablers are in place to roll out numerous services in this category. Given the right incentives, the local talent pool has the confidence and the ability to come up with many more “First Mile” solutions. The cost of these solutions is only a fraction when compared to other infrastructure-level solutions.
We believe this phenomenon deserves a closer look. If proven correct, this approach can indeed help us complement the other efforts in improving traffic at a fraction of a cost.
The pilot aims to cover the following:
- A study to identify the various reasons people travel in Dhaka
- Identify existing First Mile solutions and measure their effectiveness in reducing the daily travel time
- Identify ways to incentivize the Enterprise and Startup community to come up with First Mile solutions.