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THE RIDE-HAILING SERVICES IN BANGKOK AND NEARBY AREAS

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Nguyễn Gia Hào

Academic year: 2023

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I was very fortunate to have an advisor who was detail oriented and responded so quickly to my questions and queries. Furthermore, I would like to express my appreciation to my committee for the suggestions and encouragement that helped me to complete and correct this research. A special thanks to my family and classmates from 20C who supported, cared and loved me when I felt like giving up and pushed me to pass my master's degree.

A STUDY OF FACTORS AFFECTING CONSUMER ADOPTION OF RIDE-HAILING SERVICES IN BANGKOK AND SURROUNDING AREAS. The purpose of this paper is to identify the factors that may influence consumers to adopt the Bangkok-periphery ride-hailing services in order to gain a better understanding of the rapidly changing and improving urban mobility in Bangkok. All the respondents are active users who are currently using the driving service in 3 months.

The findings of this research show that convenience and cancellation protection factors have some relationship with the usage intention of the consumers to adopt carpooling services. Moreover, the study found that there are gender, age and income range that significantly influence the user to adopt the ride hailing services.

Table                                                                                             Page
Table Page

INTRODUCTION 1

Research Objectives 1

Research Question 1

Research Scope 2

LITERATURE REVIEW 2

Understanding the Ride-Hailing Services 3

This is one of the reasons why Ride-Hailing Service started approaching developing countries. In 2009, Uber first launched their taxi service, intended to address the problem of inconvenience in finding the traditional taxi and unreasonable costs that most commuters faced (Alpe, 2015). In the meantime, as Uber has continued to expand its operations, there are also a number of emerging taxi services.

With the advancement of technology, when the request is sent to the driver, and the driver accepts. Therefore, with the features of the ride hailing services it helps in increasing the effectiveness and convenience between the passengers and the drivers.

Figure 2.1: The Vicious Circle of Urban Transportation
Figure 2.1: The Vicious Circle of Urban Transportation

Grab: The Green light Ride-Hailing Service in Thailand 5

Conceptual Framework 6

According to Myanmar Times online newspaper, many local people tend to switch to Ride-Hailing service, Grab or Uber as they believe it will be safer and access key information such as driver name, number plate, car model and such. According to the Public Transport Council's survey from Singapore, passengers are more satisfied with the private Ride-Hailing Services than Taxis (Straits Time, 2017). With the disruptive business model and technology, rideheiling gets to tailor their service to each customer as well.

When it comes to Ride-Hailing services, especially Grab, there is a policy for drivers who always cancel their rides. With the advancement of technology, Ride-Hailing service is being used through smart phones both on the supply side and on the demand side where you can easily. It has been proven that Ride-Hailing can offer ease of use and access to a specific travel destination.

Most Ride-Hailing services also implemented this strategy to award customers points when they complete the ride. Therefore, it can be said that this is one of the main motivations to attract customers to use the Ride-Hailing service to get additional benefits as well.

Table 2.1: Table summaries of the measurement items of each Motivational  Factors
Table 2.1: Table summaries of the measurement items of each Motivational Factors

RESEARCH METHODOLOGY 10

  • Data Collection and Sampling 10
  • Questionnaire Designs 11
  • Data Analysis 12
  • Reliability and Validity 12

I would prefer to use the taxi service as they offer cancellation policies to protect passengers. That is why Cancellation Protection also has a positive influence on the intention to use the taxi service. While the rest of the independent variables have no significant effect on the intention to use the taxi service.

Therefore, cancellation protection still demonstrates a positive influence on the intention to use the transport ordering service. What is the most common purpose when you use a transport ordering service (Grab / Line Taxi). I prefer to use a ride hailing service (Grab/Line Taxi) as they rarely get turned down or rejected customers unlike traditional taxis.

I am considering switching to using a ride-hailing service (Grab / Line Taxi) if there is always a promotion or discount. I plan to use ride-hailing services (Grab, Line Taxi, etc.) more often in the future.

RESULTS AND DATA ANALYSIS 14

Demographic Information 14

As a further 26 respondents did not pass the screening question by answering No, as this study is only for active users who call transports. Therefore, respondents who did not use the ordering services within 3 months are not added up. Out of the total number, all respondents used at least an ordering service in the last 3 months.

There are 80 female respondents out of a total of 122 respondents, while men represented only 34% of the total respondents. According to Figure 4.4, the majority of the employment area is employed, which accounts for 92 people, followed by students resulting in 15 people.

Figure 4.2: Age
Figure 4.2: Age

Descriptive statistics 17

When commuting home late at night, I would consider using a ride sharing service more than traditional taxi services. When commuting alone from one place to another, I would consider using a ride sharing service more than traditional taxi services. I would consider switching to ride visit service if there is always a promotion or discount given.

I think it is important that I can assess the driver and provide feedback after the ride. I would prefer to use the taxi service as they are rarely turned down or refused, unlike traditional taxis.

Figure 4.6: ANOVA analysis between Gender and Descriptive selected output
Figure 4.6: ANOVA analysis between Gender and Descriptive selected output

Factor Analysis 19

As shown above in Figure 4.9, after the factor analysis was conducted to extract insignificant data, a total of thirteen questions remained. It is justified that this data is more relevant and significant and can provide a good measurement of the intention to use. This article ended with four groups of factors: Perceived Safety, grouped by the set of factors related to service transparency that can improve the use of the ride-hailing service.

Perceived ease remains the conceptual framework as consisting of service characteristics that allow ease of use. Cancellation protection, which may be defined in the service features that apply to protect users when cancellation is caused. Last but not least, Perceived Rewards and Benefits are defined as additional benefits or incentives to motivate users to use the service.

Figure 4.9: Final Rotated Component Mix
Figure 4.9: Final Rotated Component Mix

Regression Analysis 21

According to Table 4.11, the ANOVA table shows that the regression model statistically significantly predicts the dependent variables, namely the intention to use (sig. = 0.001) and four independent variables can influence the intention to use ride-hailing services. Figure 4.12 shows that there is a significant relationship between intention to use and perceived ease (Sig, .008). The strong relationship between these two variables is 0.255 (beta) and significant at 95% confidence. Thus, perceived ease has a positive influence on the intention to use, which is acceptable.

After the cancellation protection, there is a significant relationship between these two variables which is 0.192 (Beta) and significant at 95% confidence.

Figure 4.11: Model ANOVA Score
Figure 4.11: Model ANOVA Score

Re-run Regression Analysis 24

The main objective of this study is to examine the key factors that influence consumers to adopt the Ride-Hailing services in Bangkok and its surrounding areas. The research model was developed to understand which factors are important to consumers when selecting ride services. These factors are somewhat important in influencing consumers' decision to adopt a taxi service.

Due to the limited choice of transportation services in Bangkok, as Uber has already withdrawn from Bangkok. Therefore, there are two main transportation service companies in Bangkok, namely Grab and Line Taxi. It is evident that convenience and cancellation protection are the key important factors that influence users to adopt ride-hailing services.

Retrieved June 10, 2019, from https://bellhop.app/ride-hailing-ride-sharing-everything-you-need-to-know/. This study aims to investigate the most important factor influencing the adoption of Ride-Hailing Service between urban areas in Bangkok. I would consider using the ride-hailing service if they provide the call center or customer service to take care of customers.

I would prefer to use the taxi service as it provides access to almost every part of Bangkok city. I am willing to take a ride service (Grab/Line Taxi), if a membership or loyalty program is offered. When I use a ride-hailing service, I am satisfied that the trips are tracked via GPS before and during the trip.

I would consider using the ride-hailing service if they provide Call Center or Customer Service to take care of customers. I would prefer to use the ride-hailing service as it is able to access almost all areas in Bangkok and. I would consider adopting ride-hailing service if there is a membership or loyalty program.

When I use a ride tracking service, I am satisfied that the rides are tracked by GPS before and throughout the trip. I would consider accepting carpooling if a membership or loyalty program is provided.

Figure 4.15: Re-run Coefficients Matrix for Intention to Use
Figure 4.15: Re-run Coefficients Matrix for Intention to Use

Gambar

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Figure                                                                                       Page
Figure                                                                                       Page
Figure 2.1: The Vicious Circle of Urban Transportation
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