Building customers’ trust in the ridesharing platform with institutional mechanisms

Zhen Shao · Hao Yin

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Sharing Economy and Platforms Technology Adoption and User Behaviour Digital Platforms and Economics

Abstract

Purpose Drawing upon institution-based trust theory, the purpose of this paper is twofold: firstly, to examine the joint influences of legally binding and market-driven institutional mechanisms in promoting customers’ trust and continuance intention in the ridesharing platform; and secondly, to examine if there exists a trust transfer mechanism between institution-based trust and interpersonal trust. Design/methodology/approach An online survey was conducted in China and data were collected from 307 customers in DiDi, which is one of the largest ridesharing platforms in China. Structural equation modeling statistical method was used to test the theoretical model and research hypotheses. Findings The empirical results suggest that market-driven institutional mechanisms, regarding feedback and surge pricing, have strong influences on customers’ trust in the ridesharing platform. In addition, legally binding institutional mechanisms, regarding payment security and driver certification, are also beneficial to promote customers’ trust. Furthermore, there is a trust transfer between customers’ trust in the platform and trust in the driver. Practical implications This study provides guidelines to the administrators of the ridesharing platform to establish effective institutional mechanisms. In particular, the platform can appropriately adopt and implement the legally binding mechanisms combined with market-driven mechanisms on the platform, in order to enhance customers’ trust and promote their subsequent transaction behaviors. Originality/value This study enriches and extends the extant literature of institution-based trust from e-commerce to the sharing economy by identifying four significant institutional mechanisms. Furthermore, this study presents a new perspective of customer trust (one-to-many) in the context of ridesharing and uncovers the transfer mechanism between institution-based trust and interpersonal trust.

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References

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Cited by

2021Roles of consumer trust and risks on continuance intention in the sharing economy: An empirical investigation 2021Understanding post-adoption behaviour in the context of ride-hailing apps: the role of customer perceived value 2021Building trust in sharing economy platforms: trust antecedents and their configurations 2023Institutional trust and repurchase intention in the sharing economy: The moderating roles of information privacy concerns and security concerns

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