Abstract

As a mode serving urban mobility in developing countries, paratransit is experiencing competition with the fast and massive growth of ride sourcing. This study aims to investigate the loyalty of paratransit users in Bandung, Indonesia, in the era of competition with ride sourcing. Data collected by questionnaires and distributed to 400 paratransit users in Bandung were analysed using hierarchical structural equation modelling. The analysis shows that satisfaction is positively influenced by service quality variables. Though there is less satisfaction compared to the previous decade, satisfaction with the service still has a positive influence on total satisfaction with the mode. It can also be concluded that loyalty is positively influenced by satisfaction. Satisfaction with the image and the unique characteristics of paratransit retains passengers’ intentions toward loyalty in the future, including current personal characteristics (i.e., age, income, occupation) and travel characteristics (i.e., fare, vehicle ownership) of passengers. This study warns of the high probability of mode-changing behaviour from paratransit to another mode.

Highlights

  • The aim of this study is to examine the loyalty of paratransit users in the era of digitalization with the existence of ride sourcing

  • Data were collected by distributing online questionnaires, as face-to-face meeting is restricted in Indonesia due to social distancing resulting from the COVID-19 pandemic

  • This study investigates the loyalty of paratransit users in the era of competition from urban transport modes

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Summary

Introduction

With the advancement of information and communication technology (ICT) and the widespread use of smartphone software, ride sourcing has become a major influence in the transportation industry. Ride sourcing provides a reliable, lower cost, on-demand and door-to-door transportation service [2]. With such advantages owned by ride sourcing, Uber took six years to reach the one-billion-trip milestone in 2015, but only six additional months to reach two billion trips [3]. Ride sourcing in Indonesia was first launched in 2010 by Gojek [7]; it subsequently bloomed from 3000 to 10,000 users a day in 2015 [8] and had accumulated 5 billion kilometres of travel in 2019 [9].

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