An Empirical Investigation of Consumers’ Intention for Using Ride-Sharing Applications: Does Perceived Risk Matter?

Abstract

The study examines the factors impacting the willingness of non-users to use ride-sharing applications from the lens of perceived value and perceived risk. Both perceived value and risk have been proposed and conceptualized as second-order constructs containing their first-order value and risk dimensions. An online questionnaire survey was used to collect the data from 388 respondents in Bangladesh using the convenience sampling method. PLS-SEM was performed, and results revealed that perceived value positively affected non-users’ intention to engage in ride-sharing. Contrarily, consumers’ risk perception was negatively associated with their willingness to adopt ride-sharing applications. Additionally, the impact of consumers’ value perception on consumers’ intention to adopt ride-sharing services was positively moderated by perceived risk. This study leads to a comprehensive understanding of the factors related to perceived value and perceived risk dimensions and provides novel insights to entrepreneurial firms, market specialists and policymakers to reposition the service in the market and foster innovation to make the platforms more readily accessible and reliable through policy reformations. The study adds to the body of literature and enhances theoretical depth by highlighting the multi-dimensional nature of perceived value and risk from the human-centered design thinking approach, which aims to assist two-sided platforms like ride-sharing to understand the factors that influence non-users willingness to engage in ride-sharing services.