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GROUP PROJECT

Team Name: THE CAPITALIST

Course: Business Communication(BUS251)


Section: 05

Submitted to:
Mohammad Asif Gazi [MAG]
Lecturer,Department of Management
North South University.

Submitted by:
NAME ID

MD.IRFAN ALI 1321675020

SUDIPTA ROY 1520931630

GOLAM MOSTOFA 1611128030

MD.TAREQ HASAN 1620142030

MIR NAHIAN 1712619630

Date of Submission: 8th May, 2020


Letter of Transmittal

8th May, 2020

Mohammad Asif Gazi

Lecturer,Department of Management
North South University.

Subject: Submission of the group project.

Dear Sir,

With due regard, we would like to present our Business Communication 251 gathering venture
titled "Growing Pathao and Setting up Operations in an Argentina Market" due on 8 th May,
2020.We have seen the examination as very fascinating, gainful and wise for us. In setting up
this report, we have attempted our level best to incorporate some essential business thought and
subject.We sincerely trust that our exploration and investigation will assist us with having better
thought regarding making this undertaking and furthermore help our effectiveness in future
profession just as lift our reasoning capacity. We trust that you will discover this report worth of
all the work that we have placed in it.

Much obliged to you for your tremendous help through the course, and we anticipate working
with you again soon.

Sincerely yours,

Mir Nahian, on behalf of group-The Capitalist


Contents

Letter of Transmittal ....................................................................................................................... 3

Executive Summary ........................................................................................................................ 1

Introduction ..................................................................................................................................... 2

Analyses of Argentina..................................................................................................................... 3

History ......................................................................................................................................... 3

Geography ................................................................................................................................... 3

People .......................................................................................................................................... 4

Religion ....................................................................................................................................... 4

Customs ....................................................................................................................................... 4

Food............................................................................................................................................. 5

Language ..................................................................................................................................... 5

Currency ...................................................................................................................................... 5

Demography ................................................................................................................................ 6

Climate ........................................................................................................................................ 7

Why Pathao should expand their bussiness in Argentina? ............................................................. 8

Overview of the business condition in Argentina ......................................................................... 10

Competition ............................................................................................................................... 10

Advertising Strategy.................................................................................................................. 11

Organizational Strategy ............................................................................................................. 11

Budget ....................................................................................................................................... 12

Swot Analysis ............................................................................................................................... 14

Ridesharing Apps currently operating in Argentina ..................................................................... 15


Public Transportation in Argentina ........................................................................................... 16

Government role in Ride Sharing industry ............................................................................... 17

Pricing and services of Current Ridesharing Apps ................................................................... 18

Country/culture communication information ............................................................................... 20

Verbal Communication ............................................................................................................. 20

Non verbal communication ....................................................................................................... 20

Political affliction with Bangladesh .......................................................................................... 21

Time awareness differences ...................................................................................................... 21

Concept of personal space ......................................................................................................... 21

Decision making , problem solving........................................................................................... 21

Tone of communication ............................................................................................................ 22

Conclusion .................................................................................................................................... 22

References ..................................................................................................................................... 23
Executive Summary

This report is based on Pathao and about their opportunities and possibilities expanding their
business globally. ‘Pathao’ is one of the leading ridesharing service provider in our country. It
already captured and dominated the home market . In all of the SBU’s Pathao is successful
including Pathao Rideshare, Pathao Parcel, Pathao Food . Now the company wants to expand its
business in Argentina. Though there are a lot of competition in the international market, Mr Elius
the CEO of Pathao wants to expand the business globally . As, his consultants it is our job to
find out the opportunities of expanding.

We did a lot of research and find out Pathao has a scope and capability to expand their business
internationally as well as in Argentina. In South Asia ridesharing business is booming.
Expanding the business in Argentina, Pathao can explore new revenue potential and can help
people by providing quality service. It will also help for the branding and will help to grab more
customers.

A lot of international organization and ridesharing companies are investing in Argentina


including Uber. The country is the eight largest country in the world and has a very good
amount of population (44.49 million). The country is economically strong and suitable for
business expansion. But it is not easy for any company to go global. After doing some research
we found out that, Pathao might face some difficulties regarding the expansion including;
conflicts against taxi companies ,cultural differences, high amount of tax rate, potential
competitors. Pathao gradually doing great in the home market and conducting some research on
it our team found out that, it will be a very good initiative if Pathao expand the business in
Argentina.

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Introduction

Argentina is a large nation situated in the southern piece of South America. The eighth biggest
nation on the planet, it is the second biggest nation in South America after Brazil, and it's around
33% the size of the United Sates.

Complete region of Argentina is 2,780,400 square kilometers. Argentina is bordered by the


Andes Mountains and Chile toward the west. In Argentina, there are different types of transport
such as mini bus, long-distance bus, short-distance bus, rent a car service, remise service, taxi
service, subway, train, trolebus (electrical bus).

Uber has launched their ride sharing service at Argentina in 2016. Uber was the first large-scale
mover in the Latin American market, and has maintained a dominant share. Now Pathao want to
expand their business in Argentina.

2
Analyses of Argentina

History
Spanish pioneer Juan Diaz visits the territory presently called Argentina and cases it for the
Spanish crown. In 1535 Buenos Aires is established by Pedro de Mendoza. Just in 1816,
Argentina picked up freedom from Spain. At that point in 1880 Buenos Aires got capital of
Argentina. In the following fifty years from 1880 onwards Argentina was probably the most
extravagant country. In 1982, the leader of Argentina, General Leopoldo Galtieri attacked the
Falkland Islands off the coast in the Atlantic Ocean figuring the British wouldn't set up a battle.
Galtieri miscounted and British powers won a simple triumph. After the destruction, the nation
advanced toward majority rules system and regular citizen rule.

Geography
Argentina is a tremendous nation situated in the southern piece of South America. The eighth
biggest nation on the planet, it is the second biggest nation in South America after brazil, and it's
around 33% the size of the United States. Argentina is flanked by the Andes Mountains and chile
toward the west.

Toward the east of the Andes, the inside of the nation is level, fruitful meadow called the
Pampas. The eastern fringe of the nation is the Atlantic Ocean. Bolivia is toward the northwest
and Paraguay is toward the north. The high mountain spine of the Andes, called the Andes
Cordillera, makes a characteristic 3,195-mile (5,141.9-kilometer) border with Chile.

The nation is divided into four locales: The Andes, the North, the Pampas, and Patagonia. The
Pampas is the agriculture heartland.

Buenos Aires the capital city and most crowded


city with restaurants, cafes and the tango. There
are colorful buildings in la Boca district and
Córdoba is the second biggest city in Argentina.

So, Pathao can be appropriate for the Argentina's


City territory. Fundamentally, Buenos Aires and

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Córdoba are two principle urban areas of Argentina. City has an extraordinary street framework,
with enough flyovers and path framework. But roads are very busy in time of office. Pathao can
use the office hours to allow people to travel comfortably, timely and safely.

People
Not at all like Mexico and South American nations, for example, Peru and Ecuador, Argentina
has fewer local individuals and a huge number of populations, which originated from Europe.
The populace is involved as much as 95% of individuals of European descent, for the most part
from Italy, Spain, and Germany. About portion of the populace lives in the zone around Buenos
Aires. Buenos Aires has been known as the "Paris of South America," as a result of the European
impacts. The individuals are accomplished and 97% of the populace can peruse and compose.

Gauchos, similar to American cowboys, have been an image of the open fields of the Pampas
locale. Soccer (football), basketball, rugby and tennis are most popular sports and Pato is a
national sport of Argentina.

Religion
Argentina is known to a significant part of the outside world for its across the board Roman
Catholicism. The nation is very common, and the constitution ensures opportunity of religion.
The residents show high individualization and de-organization of strict convictions. According to
the CIA World Factbook, 92% of Argentine citizens are Roman Catholics, although less than
20% practice their faith regularly.

Customs
All in all, Argentinians are direct and blunt. They are warm individuals who regularly convey in
close contact with each other. It isn't extraordinary to have minimal physical separation between
speakers. When meeting individuals from Argentina a handshake with eye to eye connection will
do.

In the event that you are welcomed into an Argentine home dress well (wear a tie or dress) and
show up 30-45 minutes after the fact than anticipated. Being on time in Argentina isn't viewed as
typical.

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Food
Common Argentine people like food which is full of meat. Argentine Beef is known worldwide
for its full flavor and delicacy. Lunch is really the prime meal of the entire day. Argentine
individuals love their 'Asado' which is made on open fire like BBQ. Asado is national food of
Argentina. Mate Tea, Dulce de Leche, Empanadas, Carbonada are also popular foods in
Argentina.

Language
Spanish is used as the official language as the Spanish carried with them the language as they
showed up and settled in Argentina. The Spanish in Argentina, nonetheless, has grown
distinctively throughout the hundreds of years and sounds diverse to the Spanish expressed in
Spain.

So, majority of people speak in Spanish. Pathao should enlist individuals with Spanish talking
ability just as have enough information about the City. They should have the option to
communicate in English also. Because every year some tourist also visits that places. Since the
vast majority live in the city, Pathao should begin in the city for a superior possibility of
achievement.

Currency
The Argentine Peso (ARS) is the currency unit for Argentina. The Peso symbol is the same as
the dollar sign ($). The Peso is subdivided into centavos; 1 Peso = 100 centavos. The previous
currency of Argentina was also called the Peso; however, the currency evolved and fewer zeros
are currently being used.

There are two money related framework in Argentina; Banelco and Link. Most outside accuse.
and Mastercards work of the
Banelco structure so endeavor
the HSBC, Galicia, Banco
Frances and various banks that
utilization Banelco. ATM costs
are costly in Argentina

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averaging out at around $6 USD $11 USD per trade (Dec 2018). On the opposite side, portable
cash exchange is simple and practical in Argentina. Be that as it may, exchange with money is
generally well known in Argentina. It's called money is ruler in Argentina.

In Argentina, Pathao can use both cash and mobile money transaction like digital payment in
Bangladesh. Pathao could focus on cash transaction more and include a type of significant worth
return system inside the application, they can without much of a stretch become top decision of
the nation.

Demography
The present population of Argentina is 45,124,332, according to the most recent United Nations
information. As per current projections, Argentina's population will contact 45.2 million
individuals before the finish of 2020 and outperform 50 million out of 2033. The Argentinian
populace will arrive at its pinnacle population of 57.94 million of every 2079 and afterward
gradually decrease after. Argentina's population is developing at a pace of 0.93%.

The capital and biggest city is Buenos Aries, an independent city that is the second-biggest metro
zone in South America. Buenos Aires has a population of 3 million, with a metropolitan
population of near 13 million.92% of Argentina's people live in urban areas, with the 10 biggest
metro regions representing about portion of the population.

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Since the vast majority of the people are living in the Urban territories and the traffic can be
intolerable particularly during available time. Pathao can focus their Bike service more in both
city Buenos Aries and Córdoba. This will permit individuals to return to their home quickly from
office in rush hours. Only bike service is faster than any other transport service. This will permit
Pathao Bike to be popular in Argentina, particularly, if some prize framework is embedded
during times of heavy traffic.

Climate
The atmosphere in Argentina is differed. Buenos Aires and the Pampas have a mild atmosphere
which implies it' can be really cold in winter, yet sweltering and sticky in summer. In the deserts
of Cuyo it tends to be very hot and dry in summer and temperatures can reach to an amazing 50
degrees Celsius (122° Fahrenheit). During winter it is decently cold and dry.

The Andes and Patagonia are cool in summer and freezing in winter, fluctuating as indicated by
elevation. extreme temperature moves inside a solitary day are normal here. Observe that seasons
in Argentina are turned around from those in the Northern Hemisphere. This implies summer
happens from December till February.

According to weather, Pathao can operate their both car and bike service at city area in
Argentina. Because there has no rainy season actually. But in time of very cold in winter Pathao
can continue their car service. They can offer standard discounts in winter for bike service.

Argentina is one of the largest economies in Latin America and Gross Domestic Product (GDP)
of approximately US$450 billion. Argentina has vast natural resources in energy and agriculture.
Within its 2.8 million square kilometers of territory, Argentina is endowed with extraordinary
fertile lands, gas and lithium reserves, and has great potential for renewable energy. It is a
leading food producer with large-scale agricultural and livestock industries. In addition,
Argentina has significant opportunities in some manufacturing subsectors, and innovative
services in high tech industries.

Urban neediness in Argentina stays high and arrives at 35,5% of population, while destitution in
youngsters ascends to 52,3%. Money related problems in 2018 affected the nation and inferred
the correction of the financial arrangement and the requirement for a program with the
International Monetary Fund (IMF). It began in 2018, for about US$ 57 billion, with the

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principle goal of settling open records to arrive at an essential monetary equalization toward the
finish of 2019. The financial circumstance presents an unsafe equalization. The Argentine peso
has lost 68% of its incentive since 2018. Yearly expansion is over half and after a 2.5% fall of
GDP in 2018, the economy gotten an extra 2.2% in 2019.

Though the economic condition was not good in urban areas but now they have achieved balance
economic condition. So, Pathao can operate their service in Argentina. With all the significant
and various segments arranged in the City, similar to School, industrial facilities, workplaces,
and so on there is a busy time during the beginning and end of office time. This demand
increases the need of comfortable transportation system.

Why Pathao should expand their bussiness in Argentina?

Pathao is gradually doing very good in the home market and after experimenting some factors
our team found out that Pathao has the capability to enter into a larger market. Here are some
reasons why Pathao should think about stretching their business;

New Revenue Stream: Over the past few years ride sharing industry develops rapidly and
creates a magnificent popularity all over the world. The most successful ride sharing company
‘Uber’ currently operates in over 785 metropolitan areas worldwide and over 80 countries. So
the market can be wide for Pathao as well, if you can capture the market. The Ridesharing
market was valued at USD 73.07 billion in 2019 and expected to reach the target of USD 209.60
billion within 2025. The industry is developed and entering into this market is profitable. On the
other hand Pathao was valued 100 million in 2018. Doing some research we came up with a
claim that, Pathao has the ability and scope to generate the maximum profit if they expand the
business internationally. They already established their market in Nepal and doing pretty good in
there. Pathao can provide their service and earn a lot of Argentine Peso , because ridesharing
business is developing in Argentina. More importantly the company can earn a lot of foreign
currency for Bangladesh.

Brand Image & Positioning: It will help to create great brand image locally and
globally.Expansion will provide opportunities for faster growth and it will give unique look to

8
the company. When the company goes international, it will create a positive position in
customers mind and also will draw the attention of many investors and shareholders. Positive
positioning can help Pathao to raise a larger fund. With the better financial resources it can
overcome troubles and risks. Expansion will help Pathao to know itself, inside and out and to be
consistent.

Increasing Customer Growth: Business expansion will help Pathao to reach a broder audience
and deliver the service to its customers. By going global Pathao can easily grab more customers
because it will operate in a larger market. Increasing number of customers will encourage the
company to provide better service and it will make customers loyal to the company which will
definitely lead to higher profit.

Creative employment opportunities: Expansion of ‘Pathao’ in Argentina will help them to


hire many talented and creative employees from all over the world. One of the biggest advantage
of Pathao is to recruit new qualify team players. A successful company is being recognized by its
assets and available resources. Qualify employees is a great asset for any company. New and
creative employees will bring innovative ideas which will lead Pathao to gain more profit and
give competitive advantage.

First Mover advantage over Home Market: Pathao will be the first ridesharing company from
Bangladesh to operate its business in a South American country ‘Argentina’. Other local
competitors can’t compete toe to toe with Pathao. As a first mover Pathao will get the advantage
of building strong brand recognition . The company will have a larger learning curve and
customers will be more loyal to the company.

9
Overview of the business condition in Argentina

Competition
There are 4 companies that offers ride sharing service in Argentina. So, there is not much of
competition in the ride sharing market in Bangladesh. None of the companies in Argentina are
local companies. Easy taxi app developed by Brazil and BA taxi by Spain other 2 are global
companies one is Uber and other is Spanish owned Cabify. The market leader is Uber having
60% of the total market share. Cabify is the 2nd most popular ride sharing service provider,
having 30% of market share. Easy taxi and BA taxi are struggling to survive in this ride sharing
service market in Argentina with having 7% and 3% share only.

Owned by country Company Name Market Share (%)

US Uber 60

Spain Cabify 30

Brazil Easy Taxi 7%

Spain BA Taxi 3%

So, there is a huge opportunity for Pathao to be successful in the Argentina market cause pathao
is the only service which provides ride sharing, food delivery, percel delivery from the same
app.Which makes it unique from the other service provider that exist in Argentina. Also all the
ride sharing service competitor are global companies.Pathao as a brand which has already gained
so much popularity and recognition internationally.Besides,people of Argentina prefer foreign
company service more than local companies.Besides,according to a few articles people For now,
most people of Argentina use Uber at their own risk.Uber in Argentina has looser requirements
than in some other places, particularly when it comes to the cars.Which will help ride sharing
service like pathao to establish its own brand which will provide safety and insurance for the
passenger.

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Advertising Strategy
Promoting is something that Pathao ought to consider and deal with much accentuation while
offer support to its client in the Argentina market.Pathao client awerness and preliminary
techniques relies upon the best possible use of their publicizing procedures.

On the off chance that we follow some different organizations advertising methodology,Uber
offers the New Year eve festivity. They likewise offers famous people as driver as shock ride.
Pathao can follow this system as well.

Pathao can offer free rides to greatest celebration in Argenina, for example, Tango Buenos Aires
Festival,Cosquín Folk Festival,Fiesta Nacional de la Vendimia,Carnival, all during that time for
female.Also pathao can employ Argentinas best Athlete Lionel Messi as their representative for
having their consideration and impacting them.Also individuals of Argentina are vivid and eager,
there are a tremendous measure of neighborhood brand which they adored, so if Pathao can make
some promoting relationship with them it will be useful.

Passionate intrigue is perhaps the most ideal ways for guaranteeing the accomplishment of any
ad. So this can assume a major job as far as getting the clients consideration. We can utilize a
touch of dread intrigue in here with the goal that we can explain the clients that Safety matters
the most. As we previously said that Pathao center more around guaranteeing the security for
their important clients.

Organizational Strategy
In Argentina, the authoritative structure must be as indicated by the nearby condition. In the
event that all the choice are made dependent on the global condition,certain realities would not
coordinate. In this way, the dynamic force must be decentralized.The administrator around there
will take legitimate choice, in light of the circumstance.

For instance the slogan of Pathao in Argentina can unique in relation to the slogan in
Bangladesh. Pathao can compose the logo in Spanish close to with English. This will expand the
brand picture of pathao just as the trust of it in that area.

What's more, the most ideal approach to win the piece of the overall industry is to offer
moderately modest value contrasted with the contenders and furthermore pay all around ok the

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drivers to get them far from leaving Pathao.They should utilize web based life to further their
potential benefit and offer clients with enough limits andreferral codes. They can likewise
include a type of point framework like Uber, with which they can keep their old clients as long
as possible.

Budget
When all is said in done, the entire idea of the on-request ride-sharing application is partitioned
into three sections as indicated by the viewpoint of the Driver, the Passenger, and the Admin.
Further, there are various perspectives and highlights of the on-request taxi/ride booking
application for every one of them independently.

Different cost factors for building an application like Pathao to begin working their
administration in a nation like Argentian at improvement stage to the testing stage and
substantially more. These days customers lean toward their applications to be worked for both
Android and iOS stages as opposed to choosing simply one.The functionality,as well as the
backend,is comparable for Android and iOS. Be that as it may, the structures and devices would
need to be stage explicit to the advancement procedure.

Essential highlights of traveler application:

 Essential highlights of driver application Register/login: Email as well as internet based


life login choice, accounts, Mastercards, installment handling;

 Booking interface: A screen to enter the location to call a taxi to, select a taxi type (or
explicit driver), set an area for pickup;

 Tracking: To follow driver's area, to make refreshes during or after a ride, and so on.

 Price mini-computer: To check the evaluated cost of a ride from guide A toward point B
with certain taxi type even before requesting;

 Payments: Cashless and in-application, paid naturally by means of charge card, clients
get a receipt to telephone and email, or outright money.

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 Push notices: To maintain clients refreshed on control status, evaluated time of taxi
appearance, and different subtleties like vehicle model, tag, and so on.

 Messaging, evaluations and audits, booking history.

Essential highlights of drivers application:

 Register/profile/status: With confirmation (charge number) and endorsement by an


overseer, in addition to online status and calendar.

 Booking: With alternatives to acknowledge or deny the approaching request, data on


client area and goal of a ride noticeable immediately, in addition to booking history.

 Push notices: For request cautions, taxi booking information (area, installment, course,
and so forth.), for request refreshes and additionally consummation.

 Navigation: Using Google Maps or Google Places to get ideal bearings to a client and to
his goal, could be voiced.

 Cost estimation, reports, informing, support.

Along these lines, abridging everything up, a solitary stage on-request ride-hailing application
like Pathao would cost around from BDT 50000000 to BDT 70000000 Taka. The monetary
allowance would be around BDT 400000000 to BDT 500000000 tk so as to begin their business
in a nation like Argentina for both Android and iOS stages.But this cost may likewise increment
if there should be an occurrence of extra highlights in the taxi-booking application.

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Swot Analysis

Strengths:

 Pathao bikes can give some competitive advantage.


 No home country competitor at a same time
 On demand service and delivery.
 The application developed by the company.

Weakness:

 Unfamiliar with the technology.


 Lack of strong bonding between the service provides and customers.
 Uneducated drivers and careless driving

Opportunities:

 Foreign investment opportunity


 Ridesharing market is huge
 Can gain more foreign currency for the country
 Creates employment opportunities
 Pathao can explore new revenue potential

Threats:

 Legal actions and conflicts against Taxi companies.


 High investment risk.
 High corporate tax rate, foreign companies in Argentina are subject to tax at the rate of thirty
five percent (35%).
 Environment related issues
 Cultural differences can arise; language, religion etc.
 Market competitors like, Uber, Cabify, BA Taxi.

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Ridesharing Apps currently operating in Argentina

Uber: Uber started operating officially in Argentina on April 12, 2016. Uber began operations
without any authorization from the local Ministry of Transportation. This immediately angered
local taxi drivers and a protest against Uber erupted in Buenos Aires, the country’s capital and
biggest city. The government and local legislators took side with the taxi drivers and their union
and took Uber to court. Despite pending cases in court from taxi drivers and local governments,
Uber continues to operate in Buenos Aires.

Cabify: It is a Spanish ridesharing company operating in many Latin American countries since
2012. The Madrid-based company raised $120 million in 2016 in partnership with Japanese e-
commerce giant Rakuten. Cabify invested the funds heavily in expanding across major
Argentinian cities like Buenos Aires and Rosario.

Easy Taxi: Easy taxi is a Brazilian mobile ridesharing application which started operating in
Argentina in early 2013. It allows people to easily book a taxi and track it live. In 2016, the local
government in Buenos Aires announced the banning of Easy Taxi from operating in the city until
further notice. According to the City of Buenos Aires Government’s newly sanctioned law, only
government approved BA Taxi and local taxis are authorized to operate in the city. In other
words, Easy Taxi was made illegal and Buenos Aires taxi drivers who were found using the app
illegally would be fined up to AR$24,000 for breaking the law. But it still operates in Argentina
as an extension of Cabify.

BA Taxi: The local government of Buenos Aires launched their own taxi hailing app in 2017.
The app allows you to locate a taxi, calculate the journey’s cost and gives you the option to pay
with either cash or credit card and rate your ride experience (1-5 stars). It works similarly to
Cabify or Uber or Easy Taxi, with the latter two still technically illegal in Buenos Aires.

Beat: Beat is a Greek ridesharing app launched in 2011 and started operating in Argentina very
recently in late 2019. The application became available in the province of Buenos Aires starting
November, but the plan is to continue to expanding throughout the country. Beat claims it
provides cheaper rates than its competitors and Beat ensure that their cars will not be more than
10 years old.

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She Taxi: She Taxi is a ride hailing platform created by taxi driver Maria Eva Juncos a few
years ago in Rosario, Argentina. The service has around 150 taxis driven by women. Though She
Taxi accepts both men and women as passengers, the vast majority of the clientele (almost 90%)
is made up of women.

SaraLT: SaraLT is the first taxi app operating in Argentina that is exclusively for women. It
launched in early 2019 choosing Buenos Aires as its base operating city and has already garnered
more than 200 registered drivers and 30,000 active users in its first year of operation in the city.
The app works exclusively with female drivers, pairing them with female customers and
allowing them to travel comfortably and safely in the capital. The service is also providing
invaluable new work opportunities for women in Argentina.

Public Transportation in Argentina

Compared to many other Latin American countries, Argentina's infrastructure is fairly well
developed. To service the large population, there are a number of toll expressways from the
capital city of Buenos Aires. But most of the roads in rural areas of the country is unpaved.
Buenos Aires has a significant public transportation system compared to other Latin American
countries. Major towns and cities are connected by rail services and it is an inexpensive and
popular means of transportation used to cover urban and long-distance journeys. Fares depend on
which city we are on and the type of service that in being provided and the total distance
covered. Buenos Aires is the only city in Argentina with a subway system called Subte, and it’s
the quickest way of getting in and around the city centre. But not all of Buenos Aires is covered
by the Subte. The most common form of transportation in Argentina has to be the Taxi. These
taxis are often digitally metered and are cheaper compared to European and other American
nations. Outside of major cities like Buenos Aires, Mendoza and Rosario, locals often hire
Remises, taxis without meters, to travel. For regular daily commutes, people of the city rely

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heavily on public buses, called colectivos. These buses have a notorious reputation of driving
recklessly down the street and spewing clouds of black smoke while disregarding city speed
limits. Buses are visibly numbered and usually carry a placard indicating their final destination.
Some city buses operate on a pay as you board system. In big cities, such as Buenos Aires,
Mendoza or Mar del Plata, people have to buy a card for transportation called Sube cards. These
cards can be recharged like prepaid sim cards once their credit limits run low. Some cities use
other type of card payment systems that are not connected to the Sube. For us at Pathao, Buenos
Aires should be the obvious target place as it has the best infrastructure currently available for
ridesharing apps to operate. It should also be noted that all the current ridesharing apps have a
very strong base at Buenos Aires, and as a result strong competition is to be expected with
regards to pricing and target group.

Government role in Ride Sharing industry


Local governments have been sceptical of foreign private ridesharing apps from the very
beginning. When Uber entered the Argentine market in 2016, taxi drivers all over the capital city
of Buenos Aires went on strike to protest against ride sharing applications operating in the city.
Local Government and legislators also sided with the taxi union in condemning Uber. A legal
battle ensued between Uber and the Ministry of Transportation which remains unsolved to this
day. Taxi unions sued the city and Uber which resulted in a judge issuing an injunction to stop
ride-sharing services from operating in the city. Later, a judge ordered the Argentinian
telecommunication body to block the Uber app from operating within city limits. Finally, both
the consumer protection agency of Buenos Aires and a judge ordered credit card companies to
cease doing business with Uber. Buenos Aires government moved to ban Uber outright in 2016
and it followed the same suit with another foreign ridesharing app Easy Taxi in the same year. It
is inevitable that Pathao will face certain problems from local authorities and especially local taxi
driver union. Local government more often than seem to side with the taxi cartel. As a result, we
have to take into consideration certain complexities while launching our ridesharing app in major
cities, especially in the capital Buenos Aires. Uber still operates around Buenos Aires today
unofficially. It means Uber is not certified by the government and is only operated on a cash
payment system. Uber has said that the lack of explicit regulation does not mean the service is
banned, and that it obeys Argentine law, pays taxes and wants cities around the country to pass

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ride-hailing regulations. Easy Taxi also got around its ban by going into partnership with Cabify,
one of its major rivals, and still operates to this day in Buenos Aires and other major cities of the
country. In response to this, Argentinian government introduced their own ride sharing app in the
capital called BA taxi which has similar features to that of Uber, Cabify and other private apps.
The Argentine government has somewhat started loosening of the law recently which is
definitely a positive news for Pathao’s vision of Argentina as private ridesharing companies got
the green light in 2018 to operate in Argentina’s Mendoza province, which is the 4th largest
province in the country based on population and consists of a huge tourism hub. Lawmakers
there passed the country’s first law giving ridesharing companies permission to operate liberally
in the province. Argentina’s Senate voted 24-14 in favour of the law which specifically allows
such services to operate freely in the province.

Pricing and services of Current Ridesharing Apps


Currently the major ridesharing players in Argentina are Uber, Cabify and BA Taxi. These are
the most popular and widely used apps in the country for ridesharing purposes. These fares and
services of our potential rivals will help us get a clear picture of the competition that we at
Pathao will face in Argentina and help us to plan accordingly. Their fares and service provided
are broken down and detailed in the section below.

Uber

Uber currently offers only one type of ridesharing service in Argentina UberX.

Type Base Fare Per Minute Price/km Minimum Cancellation


Fare Fee

UberX $ 29.00 $ 4.00 $ 6.00 $ 50.00 $ 30.00

Uber Fares in Argentina

Uber also provides ridesharing service UberFlash that lets you access both UberX and taxi and
lets you decide the fastest and closest option. Fare for UberFlash is the same as UberX.

Cabify

Cabify offers a high range of ridesharing services in different cities of the country. Cabify
currently offers four different classes of ridesharing from their app.
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Cabify Lite: Mid-range sedans. Seats 4 people. Air-Conditioned.

Cabify Executive: Premium quality cars. Seats 4-6 people. Air-Conditioned.

Easy Taxi: Easy Taxi merged with Cabify back in early 2019 and operates as a joint entity only
in the city of Cordoba in Argentina. Mid-range sedans seating 4 people.

Cabify Economy: Connects Cabify lite with Easy Taxi drivers. Mid-range sedans seating 4
people.

City Type Base Per Price/km Minimum Cancellation


Fare Minute Fare Fare

Buenos Lite $ 35.00 $ 3.60 $ 16.50 $ 100.00 Free for first


Aires 5 mins. After
that, $100.

Executive $ 46.20 $ 3.42 $ 18.15 $ 120.00 Free for first


5 mins. After
that, $120.

Cordoba Economy $ 41.23 $ 2.50 $ 2.50 $100.00 Free for first


5 mins. After
that, $100.

Easy Taxi $ 40.48 $ 2.02 $ 2.02 $ 100.00 Free for first


5 mins. After
that, $100.

Mendoza Lite $ 95.00 $ 3.50 $ 13.00 Immediate Free for first


Request : 5 mins.
$ 95.00 .

Airport $
150.00

Rosario Lite/Ros $ 36.00 $ 5.40 $ 36.00 $ 70.20

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BA Taxi

The local government of Buenos Aires launched BA Taxi to compete with Uber and Cabify in
the capital. It provides the same features as UberX. It provides a mid-range sedan with 4
passenger seating. The fare breakdown is detailed in the table below.

Type Base Fare Per Minute Price/km Minimum Cancellation


Fare Fee

BA Taxi $ 33.00 $ 0.00 $ 16.50 Nil Nil

BA Taxi fares across Buenos Aires

Country/culture communication information

Verbal Communication
In our day to day life , we speak and also talk with different people .People of the same country
speaks the same language as well as can express their feelings easily with one
another.Simultaneously we can say that every nation has their own mother language which acts
as a medium of communication between themselves .Though we work im argentine but the
medium communication is Spanish language. Most of the people of argentine speaks in Spanish
language .

Non verbal communication


We are communicating with people in different ways and medium in our day to day
life.Communication is unique and also not the same than the other one . Non verbal
communication is also one of a type .In a simple sense the communication that takes places
between people without the use of oral and written language is known as non verbal
communication .For example Being silent and not talking also resembles this kind of
communication as facial expression is expressed .Hanshake and nod are both sign of respect in
argentina and they also use gesture like ok and thumbs up that’s all are non verbal

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communication in argentina . Pathao rider use those non verbal communication to express the
people .

Political affliction with Bangladesh


Bangladesh opened a diplomatic mission in argentina in the 1970s, but it has since been closed .
Bangladesh and argentina have shown interest in expanding the bilateral economic activities
between two countries .Bangladesh ships , pharmaceuticals ,ready made garments , melamine
and ceramics have been identified as product with huge potential in the argentina market .A good
political relation with argentina help pathao to expand business in argentina . A good political
relation help pathao to control their business , cooperate with government in argentina .

Time awareness differences


Time is a very precious resource .Even more important to realize is that time lost is lost
forever.Organization that are not aware of time are bound to be out of sync .Time awareness is a
fundamental part of a company culture . Pathao management think this the perfect time to
expand the business in latin America .Pathao is a fast growing company in the Bangladesh . If
pathao didn’t catch the argentina market in right time the other ride sharing company catch the
market . That’s the reason do the right decision in the right time is very important .

Concept of personal space


Personal space is the region surrounding a person which they regard as psychologically theirs
.Most people value their personal space .Pathao marketing team try to create the personal space
of argentine people by making various Tbc , poster and social marketing . To making this kind of
tools they must respect the emotion of argentine people .If pathao respect the emotion of the
people of argentina they easily create the personal space in the people mind .

Decision making , problem solving


Pathao expand their business in argentine so they face many kind of problem .The situation of
Bangladesh and argentine is not same .Bangladesh pathao management team not able to solve
the argentine pathao problem .To make decision in argentine pathao make different management
team who take decision and solve problem .

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Tone of communication
Tone of communication is how the character of your business comes through in your words ,both
written and spoken .Pathao to expand business in argentine follow both written and spoken tone
communication .

Conclusion

Pathao is the fastest growing technology start-up in Bangladesh. It has rapidly changed the face
of transportation system in Bangladesh. Latin America is filled with vast opportunities for
ridesharing companies as its potential remains very much untapped. Argentina, the second
biggest country in the region, is undoubtably an enticing prospect for Pathao. While a few
ridesharing companies operate in Argentina, the country still presents an enormous prospect for
Pathao provided we can adapt and move fast enough. There are familiar competitors like Uber
operating in the country with whom we are fighting in Bangladesh also. Other than that, the
potential to expand our business in Argentina is huge. There are also some impediments of which
we should be careful of and tread accordingly.

Pathao will be an unknown quantity in Latin America. As a result, customers might be a bit
hesitant at first. There is also the issue with local taxi unions. Taxi drivers in Argentina can be
very hostile towards ridesharing companies, especially foreign, as Uber and Cabify found out in
their initial days of operating in the country.

The government is also supportive of these unions and their demands. But recently, the
government has shown solicitude towards the ridesharing companies. As more and more people
are becoming technologically advanced in the country and the younger generation preferring
ridesharing services over the poor public transportation system, it is the optimal time for us at
Pathao to enter the market. Expanding our business successfully in Argentina will not only
establish our status as a global ridesharing giant but will also give us a strong base in venturing
into other Latin American countries in the future.

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