Does heavy ICT usage contribute to the adoption of ride-hailing app?

Abstract

As an effective mobility solution enabled by information and communication technology (ICT), the ride-hailing app promises passengers attractive benefits with vehicle-travel such as convenience, flexibility, and time-saving, while it is less expensive than private-vehicle ownership. This study attempts to understand the reasons and motivations underlying travelers’ adoption of ride-hailing app by focusing on two questions. That is, (1) whether or not heavy ICT usage contributes to the adoption of ride-hailing app, and (2) the extent to which variables related to diverse attributes of ride-hailing app influence the adoption decision. Specifically, a two-step analysis approach is applied. Latent class cluster analysis (LCCA) is first used to classify travelers into two groups, each profiled by particular ICT usage pattern. Then, the ordered logit model is conducted to examine the effect of multiple attributes (e.g., cost- and time- related advantage, convenience, etc.) on the adoption of ride-hailing app. The results suggest that the high intensity of ICT usage significantly promotes people to adopt the ride-hailing app, in addition to multiple other distinctive attributes. Practical implications are suggested for service providers to further enhance the popularity of ride-hailing app based on the findings.