An Analysis of the socio-economic aspects of three wheeler market as an informal public transport (IPT) mode : Moratuwa case study

In today’s world one of the most challenging problems that we face is providing optimal, efficient, cost effective and also environmentally friendly transport services. According to Aworemi, Salami, et al. (2008), the demand for public transport depends on two factors. First, “the desire to make a particular trip and to do so by public transport. Second, the characteristics and nature of the public transport modes that are available.” Providing an optimal public transport service which maximizes social welfare is a major challenge confronted with transport stakeholders in developing countries. Impoverished conditions in public transport such as bus and rail transport in developing countries have given rise to a formation of Informal Public Transport (IPT) modes. Further, increasing urbanization, population and industrial development is increasing the demand for urban transport services. As a result, demand for comfortable yet affordable public transport has become inevitably high (Hilling, 1996). Informal Public Transport (IPT) modes are widespread social phenomena in Sri Lanka and have become an integral part of the transport sector. The most common and visible IPT mode in Sri Lanka is the use of Three-Wheelers. Even though many representatives of Sri Lankan society consider it as a nuisance; congestion of traffic, noise and air pollution, association with illegal activities, and price irregularities, from the standpoint of passengers the ready availability, flexibility in door to door service, ease in communication and “affordability” have found the grounds for the existence of Three wheelers as an primary IPT mode. This study examines the socio-economic aspects in Three-Wheelers from both passenger and Three-Wheeler drivers’ perspective. Researchers of this study believe that it is important to understand how Three-Wheelers exist in a competitive market environment. Moreover, due to lack of scientific investigations on this trade, the researchers presents a socio-economic profile with a profound analysis of the pricing mechanism, market structures, customer preference, trip purposes, perception of three-wheeler imports, and social exclusion of three-wheelers, from functional and structural differentiation perspectives and theories of pricin