Ride on Conveniently!: Passengers' Adoption of Uber App in an Emerging Economy

Ride on Conveniently!: Passengers' Adoption of Uber App in an Emerging Economy

Noman Hasan (Mawlana Bhashani Science and Technology University, Tangail, Bangladesh), Abdul Gaffar Khan (Mawlana Bhashani Science and Technology University, Tangail, Bangladesh), Mohammad Awal Hossen (Jashore University of Science and Technology, Bangladesh) and Ariful Islam (Bangabandhu Sheikh Mujibur Rahman Maritime University, Bangladesh)
Copyright: © 2021 |Pages: 17
DOI: 10.4018/IJEA.2021070102
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Abstract

This study investigates the passengers' adoption of a ride-sharing service app (UBER) in Bangladesh. This study employed the most widely used and cited IT adoption model, The Unified Theory of Acceptance and Use of Technology-2 (UTAUT2), as the theoretical framework to examine the passengers' adoption of the popular sharing economy tools ride-sharing service applications (i.e., Uber). This study adds a new construct, safety, in the UTAUT2 model. Data were obtained from 206 participants which were analyzed using partial least square structural equation modeling (PLS-SEM). The results indicated that performance expectancy, effort expectancy, social influence, hedonic motivation, and facilitating conditions are the most significant determinant factors of behavioral intention to use the Uber app. In contrast, behavioral intention to use the Uber app is not significantly influenced by price value and safety. Additionally, the theoretical and practical implications of these results are discussed, which elicits the importance for business managers, marketers, and policymakers on sharing economy platforms.
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1. Introduction

In recent years, consumption patterns have been shifted drastically. Now, individuals prefer collective consumptions rather than self-consumption which is also referred to as “sharing economy” or “peer-to-peer networks” (Gerte, Konduri, & Eluru, 2018) or “social sharing” (Benkler, 2012). It enables owners to use their assets on-demand and rent them out in idle time which in turn ensures maximum utilization of resources in innovative ways (Min, So, & Jeong, 2019) and enhances economic opportunity and higher earnings. By capitalizing on the advancement of information and communication technologies, especially web 2.0 technologies and the accessibility of location-based data and smartphone apps, the transportation sector is changing at a great speed (Alemi, et al., 2018; Uğur & Turan, 2019). Uber has become an accelerator to this speed and emerged as a pioneer in the sharing economy and has become a leader in ride-sharing service (Chen, Mislove, & Wilson, 2015). It has come forth as a disruptive technology in sharing economy and got huge popularity among medium-income level people who have no personal car but expect a comfortable ride. It started its journey in the year of 2009 in San Francisco (Chaudhry, et al., 2018; Chen et al., 2015). Currently, Uber is operating in 65 countries and serving more than 600 cities globally (Chaudhry et al., 2018). Surprisingly, more than 10 billion Uber trips have been served globally with 14 million trips each day employing 3.9 million drivers worldwide providing them an average of $ 364 earnings per month (Iqbal, 2020).

The reasons behind the popularity of Uber are availability, flexibility, monitored the performance of both drivers and passengers (through the “rating system”), and the control of pricing and information (Chaudhry et al., 2018; Gerte et al., 2018). Besides these, it matches customers' demand for rides with drivers' willingness through utilizing mobile applications connected with the internet (Chen et al., 2015; Min et al., 2019). Thus, traditional taxi services are being replaced by Uber (Min et al., 2019). On the other hand, Uber is getting popular among the drivers also as it pays 80% money to the drivers and retains only 20% (Chen et al., 2015).

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