A comparative analysis of factors influencing millennial travellers’ intentions to use ride-hailing

Abstract

Ride-hailing services (e.g., Uber, Lyft) have drawn attention as a disruptive innovation in the tourism industry as they provide a new option for transport while on vacation or a business trip. Few studies have examined how travellers perceive the value of this new mode of transportation and modelled their intent to use ride-hailing services. Millennial consumers are known for their early adoption of smart technologies with different supply chains and portable internet devices (e.g., cell phones). This research examines the impact of perceived value on millennial travellers’ intentions to use ride-hailing services in two rapidly changing tourism economies embracing smart phone access to transport services. Primary data were collected with millennials located in urban universities in the US and China. Data were analysed using ordinary least squares estimates. The results revealed that price and relational value positively influenced millennial travellers’ intentions to use ride-hailing services in both samples. These influences remained significant after controlling for previous experiences with mobile technology, perceived safety, and regulations for ride-hailing services. The two millennial samples, however, exhibited different consumer factor influences. While quality and perceived regulations for ride-hailing services predicted millennial travellers’ use intentions in the US sample, previous experience of using mobile technology influenced travellers’ use intentions in the Chinese sample. As companies like Uber and Lyft expand and new providers enter the market, consumer behaviour research on perceived value can inform how business models might differ across countries and services should be tailored for each destination.