Measuring Customers’ Satisfaction and Preferences for Ride-Hailing Services in a Developing Country

Abstract

Ride-hailing services play an important role in developing countries where conventional transport systems are not enough to meet the needs of commuters because of increased populations. This form of transport has gained much popularity in developing regions because of the inclusion of motorcycles and rikshaws in ride-hailing services. To the best of the authors’ knowledge, there has been little research on passengers’ behavior towards these ride-hailing services that focuses on social protection and the fare system in developing regions. Therefore, this research study is aimed at investigating the behavior of commuters towards these ride-hailing services in Lahore, which is the second largest city in Pakistan and can be considered as a case study of a developing country. A total of 531 useable valid responses were collected through face-to-face interactions, including the sociodemographics (SEDs) and behavior of commuters towards these services. The results of an explanatory factor analysis (EFA) and structural equation modeling (SEM) revealed that some of the significant latent variables of these ride-hailing services are comfort, convenience, privacy and security, the fare system, social protection, and safety. The commuters’ overall evaluation of these services is positive and affects their present and future preferences. The structural coefficient between convenience and the variable of present preference is significant and negative, which shows that there are respondents who infrequently use ride-hailing services despite having high satisfaction. The riders’ satisfaction with privacy, security, social protection, safety, and comfort has a positive and direct impact on their present preferences as the structural estimates are positive, which means that the higher their views on privacy, security, and comfort, the more frequently they intend to use ride-hailing services for commuting. Increased social protection, safety, privacy, and security will improve the evaluations of the commuters and influence their present preferences for these ride-hailing services. Even though there are regulations on these ride-hailing services, some concrete policy interventions are needed for improvements in commuters’ overall evaluations of these services in order to influence their future preferences. The findings of this research study, if applied in the real world, can improve the overall evaluation of the commuters and positively influence their present and future preferences for these ride-hailing services.