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Pathao Courier Launches Air Travel Rewards Program to Strengthen Merchant Relationships

Pathao Courier has introduced a merchant rewards program offering air travel packages to top-performing sellers, an interesting move that signals both market maturity, and growing opportunities and competition in Bangladesh's logistics sector. The move also relates to Pathao's broader market strategy and the evolving e-commerce landscape in Bangladesh. Given the nature of the program, Pathao should expect that the program will drive further merchants' loyalty, improve its moat, and also encourage new merchants to join and old merchants to expand their work with Pathao and discourage them from going outside of Pathao for deliveries. 

The company says the program will take place every quarter with multiple evaluation criteria: parcel ratio, return ratio, success ratio, and consistency metrics, and indicates careful consideration of both merchant incentivization and operational excellence. 

By dividing the rewards into quarterly seasons and establishing multiple evaluation criteria Pathao is effectively encouraging sustained high performance rather than short-term spikes in activity. 

First Season Winners

The inaugural winners represent a diverse cross-section of Bangladesh's e-commerce ecosystem:

  • Aladin Shop (Best Merchant) - awarded Dhaka-Kathmandu-Dhaka tickets
  • Roza Fragrance (Best Emerging Merchant - Male) - awarded Dhaka-Cox's Bazar-Dhaka tickets
  • Aroby's Collection (Best Emerging Merchant - Female) - awarded Dhaka-Cox's Bazar-Dhaka tickets

Market Implications

This rewards program appears to serve multiple strategic objectives for Pathao that include merchant retention in an increasingly competitive market, operational quality improvement through performance metrics, brand differentiation, and building and strengthening relationships with merchants. 

The choice of air travel as a reward is particularly noteworthy in the Bangladesh context, where such incentives carry aspirational value and can serve as motivators for small and medium-sized businesses.

However, the program's effectiveness will depend on factors beyond just attractive rewards. The quality of day-to-day operations, customer service, costs of delivery, and delivery reliability will likely remain more critical to merchant satisfaction and retention.

If successful, the program could set a new benchmark for merchant engagement in Bangladesh's logistics sector. However, the real test will be whether it translates into measurable improvements in key performance indicators and merchant loyalty over the coming quarters. 

Pathao, founded in 2015, is one of the largest digital services platforms in Bangladesh, developing digital infrastructure to create opportunities and enhance lives across the country. The company has established itself as a key player in three key sectors: ride-sharing, food delivery, and e-commerce logistics.

The company says it reaches over 10 million users, supported by a network of 300,000 Pathao Hero and delivery agents. Its ecosystem includes partnerships with 100,000 merchants and 10,000 restaurants. Through its operations, Pathao says it has generated more than 500,000 job opportunities, making a substantial contribution to Bangladesh's emerging digital economy. With this move to strengthen its relationships with merchants, Pathao aims to further consolidate its position in the growing logistics market in Bangladesh. We’ll be closely watching what the company does next. 

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