Loyalty of Paratransit Users in the Era of Competition with Ride Sourcing

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.

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