The burgeoning electric rickshaw market in Bangladesh is experiencing a transformation, thanks to an innovative startup founded by two Harvard graduates. Tiger New Energy, co-founded by Nicole Mao and Yiwei Zhu, is rapidly expanding its battery-swapping network for electric rickshaws, aiming to reach 1,000 stations next year. This groundbreaking approach is poised to revolutionize urban transportation in one of the world’s most densely populated regions.
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alt text: Electric rickshaws, also known as tuk-tuks, waiting in line at a battery swapping station in Bangladesh.
A Serendipitous Beginning for a Sustainable Solution
The genesis of Tiger New Energy is a story of unexpected opportunity. Mao and Zhu, both graduates of Harvard University, found themselves stranded in Bangladesh during the 2021 pandemic. What began as a week-long trip extended into months, providing them with the time and inspiration to develop a business idea. Recognizing the dominance of electric rickshaws in Bangladesh and the challenges associated with traditional charging methods, they identified a critical need for a more efficient and sustainable solution.
alt text: Nicole Mao and Yiwei Zhu, co-founders of Tiger New Energy, standing in front of a map of Bangladesh highlighting their battery swapping network.
Addressing the Challenges of Electric Rickshaw Charging
Unlike gasoline-powered tuk-tuks common in other Southeast Asian countries, Bangladesh relies heavily on electric rickshaws. However, the existing charging infrastructure presented significant obstacles. Lengthy charging times reduced drivers’ earning potential, while the disposal of lead-acid batteries posed serious environmental and health risks. Mao and Zhu saw an opportunity to address these issues with a novel battery-swapping system.
Battery Swapping: A Game Changer for Rickshaw Drivers
Tiger New Energy’s network allows drivers to quickly exchange depleted batteries for fully charged ones at designated stations for a fee. This eliminates downtime, enabling drivers to complete more trips and maximize their income. The system also promotes the use of lithium-ion batteries, which are more sustainable and durable than traditional lead-acid alternatives. CEO Nicole Mao emphasizes the significant demand for efficient mobility solutions, driven by rapid urbanization and increasing employment opportunities in Bangladeshi cities.
From Battery Sales to Swapping: Adapting to Market Needs
Initially, Mao and Zhu, leveraging Mao’s family’s battery manufacturing experience in China, planned to sell lithium-ion batteries directly to rickshaw drivers. However, the upfront cost proved prohibitive for many drivers. This led to a pivotal shift in their business model, focusing on battery swapping as a more accessible and financially viable option. COO Yiwei Zhu acknowledges the initial challenges of establishing operations in a foreign country, from hiring and training local staff to securing land for a factory.
Conclusion: Driving Sustainable Transportation in Bangladesh
Tiger New Energy’s rapid growth underscores the success of its innovative battery-swapping model. By addressing the specific needs of the Bangladeshi market and adapting to challenges, the company is not only transforming the electric rickshaw industry but also contributing to a more sustainable transportation future. This innovative approach holds promise for other emerging markets grappling with similar transportation challenges.
