A Case Study On
“JoBike”
Course Title: Strategic Marketing
Course Code: MKT-5101
Submitted to
Dr. Imranul Hoque
Professor
Department of Marketing
Jagannath University,Dhaka
Submitted by
The Scanners
Batch: MKT-12
th
MBA 1st Semester
Department of Marketing
Jagannath University,Dhaka
Submission Date: 19 June, 2023
Contents
What is JoBike? ...................................................................................................................................... 3
Introduction ............................................................................................................................................. 3
History .................................................................................................................................................... 4
Background ............................................................................................................................................. 5
How to rent JoBike ................................................................................................................................. 6
Operating system .................................................................................................................................... 6
Benefits ................................................................................................................................................... 6
How does JoBike works.......................................................................................................................... 7
Major Challenges of JoBike .................................................................................................................... 8
Reasons for the Shutdown .................................................................................................................... 10
Conclusion ............................................................................................................................................ 10
Group profile
Name
Id
Juthi Khatun
B170204045
Asmaul Husna
B170204061
Md. Shah Jahan Ali Sorkar
B170204099
JoBike
JoBike is a bicycle sharing system serving the cities of Dhaka, Chittagong and Cox's Bazar
Launched in 2018, it is the first such system in Bangladesh. Currently, there are 300 JoBike
bicycles and 5 stations throughout these city, including some university like University of
Dhaka, Jahangirnagar University, University of Chittagong, and Shahjalal University of
Science and Technology, as well as suburban places like Cox's Bazar. The app-based enterprise
aims to transform the utility of two-wheeler as one of the main modes of transport in the
nagging jam-packed cities.
Introduction
Even during the Covid-induced lockdown, the bicycle-sharing service was available in several
residential areas including Mirpur DOHS in the capital.
Earlier, JoBike rolled out services in Jahangirnagar University two months after its successful
piloting in Cox’s Bazar in January 2018. It eyes Chittagong University and Shahjalal
University of Science and Technology University as well, apart from Jahangirnagar and Dhaka
universities. “We are planning to gradually expand our operation in all major cities by
launching countrywide franchises and introducing more e-bikes to our fleet,” JoBike CEO and
founder told The Business Post. JoBike has already one and a half lakh registered users as of
now.
However, the revenue earnings plummeted soon after intermittent shutdowns began from
March last year when the raging pandemic put everything on hold. Reza undertook several
attempts to turn the Covid-19 crisis into an opportunity through using his app-based JoBike but
all his efforts fell flat. Initially, he introduced the bicycle services in the capital’s Gulshan,
Banani and Baridhara areas on June 24 last year by partnering with Dhaka North City
Corporation and ICT Division, but to no avail. JoBike also joined hands with HungryNaki and
started food delivery services. “Our Jodelivery initiative – food delivery for HungryNaki
customers -- ended up in a complete fiasco. We are working hard on how to patch up all
operational flaws,” said Reza. The service on the DU campus called ‘DU Chakkar’ saw a big
surge in profit when it was launched in October 2019 with only 100 bikes, recalled the venturist.
On the university campuses, service charge is Tk 2.5 for the first five-minute ride and Tk 0.40
from the next minute. In other residential areas, it is Tk 1 per minute. The JoBike CEO argued
that he is mulling over expansion of his existing fleet of 150-200 bicycles to embark on mega
commercial operation and is waiting for a shipment of 500 new bicycles from China. In order
to guard against bicycle theft, JoBike would be equipped with a lock system that requires
scanning QR codes by smartphones to unlock the two-wheelers. Besides, setting up of GPS
tracker and GEO fencing technology will help track and monitor each bicycle under service.
In order to increase JoBike operations in other cities, the entrepreneur is now craving for
investment both from public and private sector. JoBike won a place in the best 26 startups on
‘Bangabandhu Innovation Grant 2021’and received a grant of Tk 10 lakh.
History
It was founded by Mehedi Reza on June 18, 2018.The journey of this service started by opening
its bicycle station in tourism city Cox's Bazar. Initially, this service only could be taken from
Cox's Bazar's Calatoli, Sugandha and Labani Point. Later it started their operations at
Jahangirnagar University. In continuation of this, it is currently operating its activities in
Chittagong University, Shahjalal University of Science and Technology and Dhaka city. Once
a popular bicycle rental service, Jobike could never recover from the damage caused by the
pandemic, despite creative attempts to pivot. CEO Mehedi Reza, however, explains why the
company still has a lot of potential. Before the Covid-19 pandemic, JoBike was a high-flying
company. It had operations in four of Bangladesh's biggest public universities. When its
popularity grew, it expanded services to Bangladesh's biggest tourist spot, Cox's Bazar. Its cofounder and CEO Mehedi Reza had big plans for the future. The startup's services were
appreciated not only by university students, but also by cycle lovers for being climate conscious
and environment-friendly. JoBike began with three individual investors initially: Tanveer Ali,
Fahim Saleh and Shameem Ahsan. However, the on-demand bicycle rental service could never
recover from the damages caused by the pandemic. During recurring lockdowns, it initiated
different schemes to survive, but none really took off. In the post-pandemic scene, JoBike is
completely absent. Mehedi shared with The Business Standard that his company's operation is
completely halted for now. He admitted he had made a couple of attempts to come back, but
they did not work out. In addition, the startup failed to gain attention from investors. However,
JoBike is far from its death, said the CEO. "From food and medicine to groceries and ecommerce products, online shopping grew, as did delivery services. As we had bicycles, we
thought we could join the delivery business. We onboarded some riders, who would deliver for
some companies," said Mehedi. However, this attempt fell short of success partly because
around that time, there was lots of competition in the delivery service business.
Background
Chinese bike sharing company called Jobike that opened in Mexico City a few years ago, and
within a few months they had to stop their operations because of theft. "As per statistics, even
in China 30% of bikes are stolen. In comparison, these problems in Bangladesh are very low.
Bikes are the capital. If you think that capital will be lost, it is not true," said Mehedy. He
added, "It is true that JoBike is a capital-intensive business. In other ride sharing models, the
company is creating only the software. It is not responsible for the drivers and cars, it only gets
a commission. But JoBike is different. We have to buy bikes and then maintain their quality."
Though JoBike is non-operational right now, it wants to make a comeback. This time, they are
thinking of bringing something new too. One thing would be providing services with e-bikes
(bicycles with electric motors) along with conventional bicycles. University campuses will
remain JoBike's main priorities. On campus, the normal bikes will stay. In tourist or residential
areas, e-bikes will be available. In the next three to six months, JoBike has plans to resume its
services in the four universities it had operations earlier. But it will be on a small scale. "JoBike
is far, far from finished. But we probably need some time to get back on our feet. We have a
good relationship with university authorities, DNCC and other parties. We can resume our
operations if we are funded," Mehedi said.
How to rent JoBike
To rent a bicycle from JoBike, one has to download the mobile application and open an account.
The app would show the nearby docks with available bikes. After entering the payment
information a QR code will be provided, which needs to be scanned to unlock the bikes from
the dock.
Operating system
Customer first need to download the mobile application to avail the service. Then open the
account and launch the app. There they can find out where to get bicycles. Users can install the
Jobike app on their smart phones and access the service via Jo-Credit Balance. To rent a bicycle
from JoBike, after entering payment information a QR code will be provided which is printed
on the bicycle, which needs to be scanned to unlock the bikes from the dock.
Benefits
The smart bike-sharing system implemented by JoBike Bangladesh offers several benefits to
both the company and its users:
1. Increased availability of bicycles: The smart bike-sharing system helps to ensure that
bicycles are available at all times, even in high demand areas. The system uses real-time data
to track the location of bicycles and automatically redistributes them to areas of high demand,
making it more convenient for users to find and rent bicycles when they need them.
2. Improved efficiency: The smart bike-sharing system reduces the need for manual
intervention, such as manually redistributing bicycles to different locations, which can be timeconsuming and costly. By automating this process, JoBike Bangladesh can operate more
efficiently and effectively.
3. Enhanced user experience: The smart bike-sharing system improves the user experience by
ensuring that bicycles are available when and where users need them. It also provides users
with real-time information about bicycle availability and location through the JoBike
Bangladesh app.
4. Increased safety: The smart bike-sharing system helps to ensure the safety of riders by
providing real-time information about the location of bicycles and whether they have been
properly maintained. The system also includes mandatory helmet use and a user rating system,
which helps to ensure that only responsible and safe users have access to the service.
5. Environmentally friendly: By providing a convenient and eco-friendly mode of
transportation, JoBike Bangladesh's smart bike-sharing system helps to reduce traffic
congestion and air pollution in urban areas.
Overall, the smart bike-sharing system implemented by JoBike Bangladesh offers a range of
benefits that help to make the service more convenient, efficient, and safe for users, while also
promoting sustainability and reducing the environmental impact of urban transportation.
How does JoBike works
To use the JoBike Bangladesh app, users must meet the following requirements:
1. A smartphone: The JoBike Bangladesh app is available on both Android and iOS platforms,
and users must have a smartphone to download and use the app.
2. A valid mobile number: Users must have a valid mobile number to register for the JoBike
Bangladesh service. The mobile number is used to verify the user's identity and to communicate
important information about the service.
3. Payment method: Users must have a valid payment method to rent bicycles through the
JoBike Bangladesh app. The app accepts multiple payment options, including credit/debit
cards, mobile wallets, and net banking.
4. Age requirement: Users must be at least 18 years old to use the JoBike Bangladesh service.
5. Compliance with rules and regulations: Users must comply with the rules and regulations
set by JoBike Bangladesh, which include wearing a helmet, following traffic rules, and treating
the bicycles with care and respect.
Once users meet these requirements, they can download the JoBike Bangladesh app, register
for the service, and start renting bicycles by scanning the QR code on the bicycle using the app.
Major Challenges of JoBike
Most e-commerce companies in Bangladesh came up with their own services, such as
Pandamart, HungryNaki, Foodpanda etc. Though JoBike had bicycles to begin with, its
competitors had lots of capital and covered more areas. Eventually, JoBike had to lay off most
of its employees. Before the pandemic the number of employees stood at 22, now it has
plummeted to 6. "The public transportation system was shut during recurring lockdowns. There
was no mode of safe transportation. We thought bicycles would be gift solutions to short
distance transportation, as riding them is contactless. So, we piloted a service in residential
areas," he went on. The project began in late 2020 with 100 bikes in Dhaka's Gulshan and
Mirpur DOHS. According to Mehedi, they got more than 35,000 registered customers within
the first five months. Daily activities were as high as 500 to 600 users. "Response was quite
good. But soon we faced another problem. Many of our bikes were old. As JoBike was
launched in 2018, the two year old bikes needed to be replaced. We needed more capital. That
inevitably meant more investment," he explained to us. He added, "During the pandemic
investors became too conscious. Everything seemed uncertain and we were failing to raise
funds. We talked to a couple of firms, but nothing happened. Some term sheets were also signed
with some companies. But in the final hour we could not close those deals." JoBike was in dire
need of investors. After the pandemic, the campuses reopened, but JoBike could not resume its
earlier operations as the bikes – left unused for almost two years – were out of service. Some
bikes had broken circuits, some needed GPS and lock system upgradation etc. Mehedi admitted
it may have been their fault that they could not present JoBike as a lucrative company to
investors, especially when most investors are of the opinion that the bike sharing market is still
nascent. He said, "In the Bangladeshi startup ecosystem, venture capitalists and investors are
not that mature. They are more into SaaS (softwares as services) based models rather than
engineering or hardware based models." "In SaaS, maintenance cost is minimal, and there is
no manufacturing cost. So, Bangladeshi investors are probably not interested in hardware based
startup models. This could be one of the reasons for our failure," he added. Mehedi said that
many even think that the bikes – essentially the main capital – get stolen.
Expanding bike-sharing services to other cities can be challenging due to a number of factors.
Some of the key challenges include:
1. Infrastructure: One of the main challenges of expanding bike-sharing services to other cities
is the lack of proper cycling infrastructure. Cities that lack bike lanes, parking facilities, and
other infrastructure to support cycling may not be conducive to bike-sharing services.
2. Regulations: Bike-sharing services may face regulatory challenges when expanding to new
cities, as different cities may have different regulations related to cycling, transportation, and
public safety.
3. Competition: Bike-sharing services may face competition from other forms of
transportation, such as public transit, ride-sharing services, and personal vehicles. In cities
where these alternatives are widely available and affordable, bike-sharing services may
struggle to gain traction.
4. Funding: Expanding bike-sharing services to other cities can be costly, as it requires
significant investment in equipment, infrastructure, and personnel. Securing funding from
investors or government agencies can be difficult, particularly in cities where bike-sharing
services are not yet established.
5. Cultural barriers: In some cities, cycling may not be a popular mode of transportation due to
cultural attitudes or habits. Bike-sharing services may need to address these cultural barriers
by promoting the benefits of cycling and educating the public on safe cycling practices.
Despite these challenges, bike-sharing services have been successful in expanding to cities
around the world. By leveraging technology, promoting sustainable transportation practices,
and addressing the unique challenges of each city, bike-sharing services can play an important
role in promoting urban mobility and reducing traffic congestion and pollution.
Reasons for the Shutdown
In 2020, when the coronavirus pandemic started, the general public did not feel safe traveling
on public transportation. At that time, JoBike employees thought that JoBike's usage would
increase as an alternative means of transportation for short distances. Therefore, the company
started a pilot project with 100 bicycles outside the educational institutions in the Gulshan and
Mirpur areas of Dhaka for commuting. During that time, the company gained nearly 35,000
registered users in five months. Additionally, around 500 to 600 customers were using JoBike
every day. However, the bicycles that the company started with two years ago became old and
needed to be replaced with new ones, which required a significant amount of funds. Regarding
the financial situation at that time, JoBike's CEO Mehedi said, "During the pandemic, investors
became worried because everything was very uncertain. Nevertheless, we talked to several
companies for investment, even signed some term sheets. But in the end, we failed to secure
investment." After the campuses became empty due to the pandemic, JoBike tried its best to
keep the service running. Mehedi said, "During the pandemic, we started using our bicycles for
food, medicine, and e-commerce product delivery. Since we had bicycles ourselves, we wanted
to join the delivery business. We employed several riders to deliver other companies' products."
However, during the COVID-19 pandemic, Jobike was unable to compete in the delivery
business because there were already several delivery companies operating in the market.
Additionally, there were also several established companies such as Pandamart, Foodpanda,
and Hungrynaki that had their own delivery services, making it difficult for Jobike to compete
even if they had their own bicycles. Moreover, after the pandemic, the bicycles that Jobike had
remained unused for a long time, making them unsuitable for use. The locks and GPS systems
on the bicycles also became dysfunctional. On the other hand, as a company, Jobike was unable
to attract customers with its advertisements, and they were when the campus reopens after the
pandemic, the bicycles owned by Jobike will become obsolete due to their prolonged inactivity.
In addition to this, the locks and GPS systems on the bicycles may also become dysfunctional.
Despite having their own bicycles, Jobike was unable to compete with other companies in terms
of capital and coverage area. They were also unable to attract customers with their
advertisements, which may have led to a lack of interest from the public in the future.
Conclusion
JoBike Bangladesh is a bike-sharing service that has successfully addressed the challenges of
bike-sharing in a crowded and congested urban area like Dhaka. The company's smart bike
sharing system and safety features have helped to improve the user experience and promote
sustainable transportation practices in Bangladesh. One of the key features of JoBike
Bangladesh's smart bike-sharing system is the use of GPS-enabled bicycles, which allows the
company to track the location of bicycles in real-time and automatically redistribute them to
areas of high demand. The JoBike Bangladesh app is another important component of the
service, allowing users to find and rent bicycles, track their usage, and provide feedback on the
service. To ensure the safety of its riders, JoBike Bangladesh has implemented a number of
safety features, including mandatory helmet use, a user rating system, and a 24/7 customer
support center. The company has also partnered with local organizations to promote safe riding
practices and to provide training on bicycle safety. JoBike Bangladesh has also been successful
in expanding its operations to multiple cities in Bangladesh, including Chittagong and Sylhet,
and it continues to grow its user base. The company plans to expand to other cities in
Bangladesh and across the globe, and it will need to address infrastructure, regulations,
competition, funding, and cultural barriers to do so. Overall, JoBike Bangladesh's success can
be attributed to its innovative technology, focus on safety, and commitment to promoting
sustainable transportation practices. As the company continues to expand and address the
unique challenges of each city it enters, it has the potential to play an important role in
promoting urban mobility and reducing traffic congestion and pollution.