Factors influencing customer's loyalty towards ride-hailing taxi services – A case study of Vietnam

Abstract

Abstract With the emergence of new transport technologies, ride-hailing services have become increasingly popular around the world in recent years. Particularly in developing countries where public transport (PT) systems are normally poor due to the lack of investment, these services have become more prevalent as they are considered as a form of PT mode. Thus, understanding the loyalty intention of ride-hailing passengers is important as it is seen to be a prime determinant of long-term financial performance. Additionally, the operation of these services can increase urban mobility, which can lead to an increase in local spending and government revenue. The aim of this study is to understand better the complexities of factors influencing ride-hailing passenger satisfaction and loyalty intention. The data collected by surveying 559 ride-hailing passengers in Vietnam was analysed using a Partial Least Squares - Structural Equation Modelling (PLS-SEM) approach. The findings show that three factors including perceived benefits of the booking app, perceived sales promotion and perceived service quality have direct influences on passenger satisfaction and loyalty in which perceived service quality is more important than the other factors. Insight into the perceptions of passengers provides ride-hailing firms and even their competitors (traditional taxi services) with managerial implications aiming to maintain and increase patronage.