Factors influencing paratransit operation in the Municipalities of Bangladesh: a case of E-rickshaw in Pabna

Paratransit refers to demand-responsive services in developed countries, such as shared-ride taxis and dial-a-ride buses. In developing countries, private, small-scale services are referred to as "low-cost transport" or "third-world transport." These services, utilizing smaller vehicles, can be legal or illegal, depending on local rules and regulations. Rapid urbanization in developing countries has increased the demand for mobility services, putting pressure on urban transport infrastructure. Inadequate and unreliable formal public transport services lead to population dependence on personal and informal options. Informal transport modes, such as tempo, CNG Auto-rickshaws, and shared autos, serve as paratransit or intermediate public transport. The study examines the socio-economic impact of E-rickshaws in Pabna Municipality, Bangladesh, focusing on drivers' motivations and the economic implications of their transition. Interviews with 250 drivers revealed that E-rickshaw driving is an attractive option for individuals transitioning from various occupations due to its superior earning potential, comfort, and low investment cost. It has become a significant employment source, with 27% of previously unemployed individuals now employed. Based on multinomial logistic regression, the current monthly income has a positive coefficient of 0.691 and a p-value of 0.000. Results demonstrate a 0.691 unit increase in monthly savings for every unit increase in monthly income. Variables impacting changes in living standards are also illustrated by the model. Drivers with incomes between 8001 and 12,000 BDT are significantly less likely to report a rise in living standards compared to those with incomes above 20,000 BDT. However, challenges such as longer waiting times, higher operational costs, and reduced profitability can affect overall income. The study concludes that E-rickshaw operation has significantly transformed the socio-economic conditions of drivers in Pabna Municipality.