Determinants of Using Ride-Hailing Service: Evidence from Malaysia

Abstract

With the entrance of Uber into the land transportation industry, ride-hailing service has gained popularity and changed the way people travel in urban areas in Malaysia. Despite the growing popularity of this new mode of cab service, studies about factors influencing consumers’ choice to use ride-hailing service are limited in developing countries. This study used primary data collected via a survey in Penang, Malaysia. This study aims to examine the factors affecting consumers’ decision to utilise ride-hailing service. The novelty of this study is the adoption of a Heckman probit selection model to account for the possibility of sample selection bias and the introduction of an important explanatory variable - consumers’ comparative satisfaction with the attributes of ride-hailing and traditional taxi service that affect consumers’ choice of cab service. The results show age, gender, education, marital status, income, cost considerations and vehicle ownership significantly determine the probability of using cab service. Consumers’ choice between ride-hailing and traditional taxi service is affected by gender and their comparative rating of both services in terms of waiting time and the disposition of drivers. This suggests the necessity for cab service providers to improve their service in order to remain competitive in the industry.

Predicting Public Willingness to Use Autonomous Shuttles: Evidence from an Emerging Economy

“…For instance, 78.3% of the respondents hold a degree or higher in education, and 82.7% fall within the age range of 18 to 56. Previous research has indicated that individuals with a college degree and below the age of 56 exhibit higher rates of adoption for new ride-hailing services compared with those without a degree and over the age of 56 ( 139 , 140 ). Thus, this study contributes to our understanding of whether the general population of ride-hailing users finds the autonomous shuttle service acceptable.…”

Impact of Women Driving Rights on Adoption and Usage of E-hailing Applications in Saudi Arabia

“…Their findings showed a correlation between perceived usefulness and user pleasure that was positive. Lim et al (2018) found an important relationship of PU, subjective norms, perceived risk and perceived playfulness with the consumers' adoption of ridehailing applications in the context of Malaysia. Table 4 presents a summary of existing studies in the area of transport applications.…”

“…The acceptance of transport applications is studied in diverse geographical regions, including China (H. Li & Liu, 2014;Park & Kim, 2014;Y. Wang et al, 2018;Zhou, 2012), Brazil (Joia & Altieri, 2017), Malaysia (Lim et al, 2018;Ubaidillah et al, 2019;Weng et al, 2017), France and Switzerland (Madigan et al, 2016), Vietnam (Giang et al, 2017), Thailand (Ruangkanjanases & Techapoolphol, 2018), Indonesia (Gumilar et al, 2019), India (Ardra & Rejikumar, 2017), and Taiwan (Cheng & Huang, 2013). These studies have measured the acceptance of transport applications by utilizing and extending different models according to context and domain as presented in Table 2.…”

The political game of innovation: evidence from the ride-hailing service industry

“…Thus, the ride-hailing business is legitimized by responding to these actors' expectations [see also the study by Anning-Dorson (2021) and Farrukh et al (2021)]. Also, by bringing institutional theory to market research, we look beyond the traditional stimulus-response approach that focuses on dyadic relationships, such as those between policymakers and ride-hailing platforms (Zhong et al, 2022) or digital platforms and passengers (Bai et al, 2019;Lim et al, 2018), to a network of actors who co-influence the institutions.…”

“…, 2022) or digital platforms and passengers (Bai et al. , 2019; Lim et al. , 2018), to a network of actors who co-influence the institutions.…”