Factors influencing customer satisfaction and loyalty towards motorcycle ride-hailing services in Indonesia

With the increasing number of internet users and cellular mobile connections in Indonesia, digital transformation is rapidly taking over and improving the quality of life by evolving the way people communicate, interact, and make transactions. An implication of technological advancements that has been brought to ease people’s dailyactivities is the innovation in public transport alternative, ride-hailing services. With the presence of several competing ride-hailing providers in Indonesia, the loyalty of customers towards a particular brand is interesting to be explored. This quantitative descriptive research is conducted to analyze the factors influencing customer satisfaction and loyalty in this context. A total of 398 respondents who are recent customers of motorcycle ride hailing services were collected using purposive sampling and the data was processed using Partial Least Squares – Structural Equation Modeling (PLS-SEM). The findings suggest that perceived benefits of ride-hailing apps, perceived sales promotion, perceived app-related and vehicle and driver-related risks play a significant role in predicting both customer satisfaction and customer loyalty directly. Meanwhile, perceived service quality has no significant direct effect on customer loyalty but has a mediating effect through customer satisfaction.