Exploring Factors Influencing E-Hailing Services in Klang Valley, Malaysia

International Journal of Business and Economy
eISSN: 2682-8359 | Vol. 3, No. 1, 32-46, 2021

http://myjms.mohe.gov.my/index.php/ijbec
International Journal of Business and Economy (IJBEC)

eISSN: 2682-8359 [Vol. 3 No. 1 March 2021]
Journal website: http://myjms.mohe.gov.my/index.php/ijbec
EXPLORING FACTORS INFLUENCING E-HAILING

SERVICES IN KLANG VALLEY, MALAYSIA
Ooi Bee Chen1* and Shafinaz Ahmad Nazar2

12
Faculty of Accountancy and Management, Universiti Tunku Abdul Rahman, Kuala Lumpur, MALAYSIA
*Corresponding author: ooibc@utar.edu.my
Abstract: The usage of the smartphone has become

Article Information: increasingly common in this digital economy generation
Article history: (Laura et al., 2019). In recent times, people have been
complaining about the state of public transportation in
Received date : 30 January 2021 the Klang Valley which were slow and inefficient. E-
Revised date : 23 February 2021 hailing is a process of ordering a car, taxi, limousine, or
Accepted date : 27 February 2021
Published date : 2 March 2021 any other form of transportation pick up via a computer
or mobile device (Bursha, 2016). E-hailing service
To cite this document: become more popular globally because it can enable
customers to hail a vehicle by using their smartphones.
Ooi, B., & Ahmad Nazar, S. (2021).
EXPLORING FACTORS
With the e-hailing apps, customer does not need to hail
INFLUENCING E-HAILING the empty taxi on the street, which may offer
SERVICES IN KLANG VALLEY, uncomfortable and inefficiency during the rush hours
MALAYSIA. International Journal Of and raining day (Fang & Zuo-Jun, 2015). The research
Business And Economy, 3(1), 32-46. aims to study the relationship between security feature,
fare, payment method, ease of use, and customers’
perceptions and satisfaction level on e-hailing service in
the Klang Valley. The target sample in this study are e-
hailing users in the Klang Valley. The results from this
study showed that there are significant positive and
moderate relationship between the four factors.
Through the multiple linear regression analysis, we
observe that 69.4% of the four factors which are security
feature, fare, payment method, and ease of use has a
significant influence on the customers’ perceptions and
satisfaction level. Furthermore, security feature is found
to be the most important factor that influence the
customers’ perceptions and satisfaction level on e-
hailing service in the Klang Valley.
Keywords: e-hailing, smartphone, customers’

perception, satisfaction level.
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eISSN: 2682-8359 | Vol. 3, No. 1, 32-46, 2021
1. Introduction
Malaysia is the top 50 countries rank by population which is the 41st most country in terms of
population size with totaling around 31,381, 992 individuals (United States Census Bureau,
2017). Klang Valley is an urban conglomeration in Malaysia that is centered in Kuala Lumpur
and includes its adjoining cities and towns in the state of Selangor. The population in the Klang
Valley is about 7.2 million people in an area of 2,793 square kilometers and about 30% of the
nation’s gross domestic product (GDP) is related to this area (Kuala Lumpur Population, 2016).
Klang Valley is an area that offers many job opportunities, and most people concentrate in this
area either for work or business. Therefore, the traffic flow is busy with private vehicles coming
in and out of this area especially on weekdays. The traffic situation worsened at peak hours in
the morning when residents came to work and, in the evening, when they returned to their
homes. Following this, the government recommends that the entry of private vehicles be
limited in number either by carpooling or using public transport.
There are variety modes of public transport in the Klang Valley such as rail transport, bus
service, and taxi service (The Land Public Transport Commission (SPAD), 2016; Onn et al.,
2014). Despite many alternatives of public transport facilities available in the Klang Valley,
the service efficiency is not satisfactory to most passengers. In addition, the service is also
associated with the problem of lack of direct access facilities to get to a place and requires a
longer time to get to the destination you want to go to. Therefore, consumers feel that they are
more comfortable using private vehicles than public transport. The advent of e-hailing service
brings a new alternative in the world of public transport which provide a private car service.
To use the service, it involves the process of ordering a car, taxi, limousine, or any other form
of transportation pick up via a computer or mobile device (Bursha, 2016). This technology
allows passengers to identify the locations of available vehicles in the selected area and allow
drivers to identify the location of passengers who are currently ready to travel. In Malaysia, the
most common e-hailing service are Grabcar and Uber.
E-hailing industry is booming in Malaysia because of various reasons. Firstly, the passengers
opt for e-hailing service because of its convenience and availability. Secondly, the comparably
cheaper fares (Loi, 2016) have prompted more users to use the service. Thirdly, the technology
allows passengers and drivers to conduct the transaction cashless (Sean, 2017) which makes it
safer and more convenient for all parties involved. All these factors become important to the
growth of e-hailing service in Malaysia, especially in the Klang Valley. Therefore,
understanding the customers’ perceptions and satisfaction level in the Klang Valley towards e-
haling service is very important for the industry to improve their service and grow their
business. Based on the above discussion, the following research objective is proposed: What
are the factors influencing customers’ perceptions and satisfaction level on e-hailing service in
the Klang Valley, Malaysia. This paper is organized into six sections. The first section
introduces the research, and the second section provides the literature review and hypothesis
development. Section three provides an explanation of the research framework and the
methodology. Section four presents the results and discussions followed by section five which
discusses the conclusion and policy implications.
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2. Literature Review
2.1 Review of Literature and Hypothesis Development
The usage of the smartphone has become increasingly common in this smartphone generation
(Laura et al., 2019). According to the statistic from eMarketer (2015), the number of
smartphone users worldwide is 1.86 billion in 2015 and there was a forecast on the smartphone
penetration rates to grow from 2.1 billion in 2016 to approximately 2.5 billion in 2019.
Malaysia has 10 million users of smartphone with 140% of the mobile penetration rate (World
Bank, 2012). The increasing number of smartphone users is associated with an increase in the
demand on e-hailing service. It has been reported that 50% of the taxi users use the e-hailing
service than the conventional taxi service (Bernama, 2017). With the e-hailing service,
customers are no longer needed to hail the empty taxis on the street which are uncomfortable
and inefficiency during the rush hours and raining day (Fang & Zuo-Jun, 2015).
Public dissatisfaction with conventional taxi service has increased the popularity of e-hailing.
From the survey results by SPAD, 80% of respondents prefer e-hailing service and 70% of
respondents requested the service to be regulated. The outcome of the survey shows that people
were unhappy with local taxi drivers because they do not use the taxi meter during the ride,
charges excessive fees for a short journey, and turning down passengers without valid reasons
(Kamarul, 2016). In addition, e-hailing service offers wide range of advantages over
conventional taxi service which increases the popularity of e-hailing among customers such as
speediness, privacy, comfortable, and availability of service over 24 hours (Fang & Zuo-Jun,
2015; Patrick & Jose, 2016; Ge et al., 2017).
Perception refers to a process by which individuals organize and interpret their sensory
impressions to give meaning to their environment (Langton et al., 2010; Warokka et al., 2012).
A successful perception process leads to a purchase and consumption of a product or service.
Customer satisfaction is defined as a measure and characterizes the distance between users’
expectation and experiences on the services or products (Vanderschuren, 2006). It also refers
to as the individual’s perceptions of the performance of the products or services in relation to
his or her expectations (Jenet, 2011; Schiffman & LazarKanuk, 2004; Patrick & Jose, 2016). It
can be concluded that customers’ satisfaction level is one of the important factors that motivate
them to choose the products or services.
Vanderschuren & de Vries (2013) states that there are some factors influence customers’
satisfaction level on taxi-hailing application namely, ease of use and safety and security
features. Understanding the customers’ perceptions and satisfaction level on the e-hailing
service is important for the industry to identify the most important features of their service
which can help the business to grow and widely accepted. Among many others, some important
features that have been identified to influence customers’ satisfaction level on e-hailing service
are security and safety feature, fares, payment method, and ease of use.
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Security and safety feature are important when the customers choose to use e-hailing service
while moving from one place to another. In the Klang Valley, there have been incidents
reported whereby the conventional taxi drivers attacked the Grab drivers due to dissatisfaction
on their loss of income following the competition from e-hailing industry (Khairah, 2017).
Therefore, the Grab managements have taken a few steps to encounter this problem and protect
the safety of their drivers and passengers (Sharmila & Lee, 2017). The measurement includes
tracking feature in which the detail information of the drivers such as the name, car plate
number and real time location are available (Juma, 2016). This feature is important for the
regulator to inspect the driver’s background and the passengers will be able to ride peacefully.
Fare is another most significant factors in the user’s perceptions of e-hailing because it relates
closely to how the users correspond with the reasonable fare. Many people choose e-hailing
service because their fare is comparatively cheaper than conventional taxi (Loi, 2016; Nadine,
2016). In addition, customers sometimes received promotional codes offered by the e-hailing
operators which can further save their money (Erna, 2017; Grab Malaysia, 2016; Uber
Malaysia, 2016). Moreover, if more passengers share a ride, it will be very much economical
to use e-hailing service (Chan, 2017). Hence, a reasonable and relatively cheaper fare will cause
the users to feel positive about this e-hailing industry.
The ability to link passengers’ credit card to the e-hailing applications allows for security and
convenience settling of payments (Juma, 2016). The customers may have the options to pay by
using either credit card or debit card (Sean, 2017). Even though this method is convenient, but
Malaysians still prefer to use cash upon payments on e-hailing service (Ashvin, 2016).
Therefore, by flexibility of cash and credit options combined, e-hailing service provides a
variety of payment options that suits customers’ needs. This method is very much different
than conventional taxi in which the drivers only accept cash as a mode of payment.
Juma (2016) found that accessibility is the key to encourage more people to choose e-hailing
service. Thus, with the ease of using smartphone applications under e-hailing booking systems,
it will help to elevate the rate of occupancy for public transportation (Razieman et al., 2015).
Consumers can book for a ride by just tapping on the screen of their mobile device and then
they can check for the distance of the driver from their location at any point of time (Sean,
2017). This brings more convenience to customers and help them making a proper journey
plan.
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Our research aims to develop the users’ perceptions and satisfaction level on the e-hailing
service in the Klang Valley. Firstly, the variables that contribute to the users’ perceptions are
identified and been validated. The factors include security feature, fares, payment methods and
ease of use. The conceptual framework of this study is depicted as in Figure 1 below. It consists
of one dependent variable and four independent variables. The dependent variable is a criterion
or a variable that is to be predicted or explained. The independent variable is defined as a
variable that is expected to influence the dependent variable.
Security Features H1
H2 Consumer’s Perceptions
Fare
and Satisfaction Level on
Payment Methods E-hailing Services
H3
Ease of Use H4
Figure 1: Conceptual Framework
From the conceptual framework, the following hypotheses were formulated:
H1: Security Features has no significant relationship with customers’ perceptions and
satisfaction level of e-hailing service.
H2: Fare has no significant relationship with customers’ perceptions and satisfaction level of
e-hailing service.
H3: Payment Methods has no significant relationship with customers’ perceptions and
H4: Ease of Use has no significant relationship with customers’ perceptions and satisfaction
level of e-hailing service.
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2.2 Problem Statement

In recent times, people have been complaining about the state of public transport in the Klang
Valley due to its inefficiency. Onn et al., 2014 found that most of the travelers prefer private
cars which are more cost and time effective than public transportation system. Moreover,
Rozmi et. al. (2012) states that other factors make customers become demotivated to choose
public transport which includes inflexibility, no direct access, need longer travel time, and
unsafe when their using public transport.
Therefore, e-hailing service has come at a right time into Malaysia. E-hailing service is one of
the public transports which provide the private car service. Thus, it also satisfies the demand
and preferences of Malaysian over private cars, shorter travel time, and convenience. The
availability of e-hailing service in the Klang Valley such as Grabcar gives customers greater
efficiency and comfort in commuting from one place to another (Khairah, 2017). According to
results from SPAD, the number of users in public transport has increased. Therefore, e-hailing
industry should understand the customers’ perceptions and satisfaction level in the Klang
Valley towards their service.
3. Method
3.1 Measurements
The method of survey by questionnaire was used to collect the data to test our research model.
We designed a questionnaire based on variables adapted from prior literatures (Juma, 2016;
Gefen et al., 2003; Venkatesh et al., 2003) that suggested security features, fare, payment
methods, and ease of use are the important features to describe customers’ perceptions and
satisfaction level of e-hailing service. All questions about the four factors that affects
customers’ perceptions and satisfaction level were answered on a 5-point Likert scale ranging
from 1 (strongly disagree/ strongly dissatisfied) to 5 (strongly agree/ strongly satisfied).
3.2 Survey Design and Data Collection

Our data is considered as a primary data. Primary data collection method is selected because
we use survey research in this study. Primary data is gathered from the feedback of the
questionnaires that is distributed to the consumer. In this research, two hundred (200) sets of
survey questions were distributed to the respondents around the Klang Valley. The target
population in this research are users of e-hailing service such Grabcar in the Klang Valley
during the survey period. Klang Valley is defined as an area that covers 10 municipalities,
ranging from the highest population to the lowest, including Wilayah Persekutuan Kuala
Lumpur, Klang, Cheras, Subang Jaya, Petaling Jaya, Selayang, Shah Alam, Ampang, Putrajaya
and Sepang. The sampling technique that is conducted in this study is non-probability
sampling. In particular, the technique is called convenience sampling which is under the non-
probability sampling (Saunders et al., 2012; Sedgwick, 2013). This technique is chosen because
it is easier to recruit the respondents in the survey and collect the questionnaire effectively and
efficiency. Therefore, huge amount of completed research questionnaire can be collected from
respondents (Sedgwick, 2013).
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Besides, snowball sampling is also conducted in this research. Under this technique we can
share the research question to more people. For example, we share the link of research question
to our friends and family and request them spread the link to their friends and family as well.
A total of 250 sets of copies of questionnaires were prepared and distributed to the potential
target population. 50 sets of copies are pre-test that had been conducted to check the validity
and correctness of the questionnaire. The purpose of doing this is to ensure the accuracy and
reliability of the questionnaire constructed in testing the variable before it was finalized.
Therefore, the remaining 200 sets of copies of the questionnaire were used for actual data
collection.
3.3 Data Analysis

The data that have been collected through the questionnaire are analysed by using Statistically
Packages for the Social Science (SPSS) software. SPSS is one of the alternative techniques that
used in the process of data transforming in this research study. Data transforming is the process
of changing original data form to a proper format which then be used to interpret the data
analysis. It helps to analyse of any significant relationship between independent variables and
dependent variable. The data analysis involves translating data into useful information.
3.4 Descriptive Analysis

Zikmund et. al. (2013) found that descriptive analysis is the summary of the responses from
the respondents. The analysis involves transformation of raw data into a form that will be easier
to understand and interpret, rearranging, ordering, and manipulating the data to generate
descriptive information. In sections A and B of the questionnaire, the frequency and percentage
were used to evaluate the data. For sections C to section G, the test for mean, range, standard
deviation and variance analysis are obtained to show overall trend and respond.
3.5 Scale Measurement

Scale measurement is used to analyse the reliability and validity of the data. Reliability analysis
works in a way that explain whether the items in the research have positive relationship
between the variables. Table 1 shows the strength of association with different level of Alpha
Coefficient values.
Table 1: Cronbach’s Alpha Strength Association

Alpha Coefficient Strength of Association
< 0.6 Poor
0.6 ≤ α < 0.7 Moderate
0.7 ≤ α < 0.8 Good
0.8 ≤ α < 0.9 Very Good
≥ 0.9 Excellent
Source: Essential of Business Research Methods, USA: John Wiley & Sons. (Hair et. al., 2007).
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3.6 Inferential Analysis

3.6.1 Multiple Linear Regression Analysis
By using the Multiple Linear Regression Analysis, it enables researchers to investigate whether
there is a significant positive relationship between a dependent variable and two or more
independent variables (Hair et al., 2007). According to Zikmund et al. (2013), multiple linear
regression analysis is a statistical technique that is used to test the significant relationship
between independent variables and dependent variable where both variables must be of metric
values.
Through this analysis, researchers can understand the significance relationships of customers’
perceptions and satisfaction level of e-hailing service among four independent variables. The
following equation is used in this research:
Y = α + β1X1 + B2X2 + B3X3 + B4X4 + ɛ
where Y is the customers’ perceptions and satisfaction level of e-hailing service, X1 is security
feature, X2 is fares, X3 is payment methods, X4 is ease of use, α is constant value / Y-intercept,
β is the regression coefficient and ɛ is the error term.
3.6.2 Pearson Correlation Coefficient Analysis

Pearson Correlation Coefficient (r) measures the strength, importance and direction between
the independent variables and the dependent variable (Bougie et al., 2013). The value of
Pearson Correlation Coefficient can range from -1 which represent a prefect negative linear
relationship to +1 which represent a perfect positive linear relationship (Julie, 2011).
Meanwhile, a value of zero (0) indicated no relationships between independent variables and
the dependent variable.
On the other hand, p-value is used to determine the statistical significance in a hypothesis
testing. P-value which is less than 0.05 (p < 0.05) denoted a strong evidence in rejecting null
hypothesis (H0) and accepting the alternative hypothesis (H1). Meanwhile, p-value which is
large than 0.05 (p > 0.05) indicates a strong evidence in accepting null hypothesis (H0) and
rejecting the alternative hypothesis (H1). “+” or “-” symbols refer to the direction of correlation.
“+” correlation represent the positive correlation between independent variables and the
dependent variable. Whereas “-” correlation represents the negative correlation between two
variables, for instance when one variable increase, the other variable decrease. Table 2 shows
the rule of thumb about Correlation Coefficient Size.
Table 2: Rule of Thumb about Correlation Coefficient Size

Coefficient Range Strength of Association
+/- .91 - +/- 1.00 Strong
+/- .71 - +/- .90 High
+/- .41 - +/- .70 Moderate
+/- .21 - +/- .40 Small but definite relationship
+/- .00 - +/- .20 Sight, almost negligible
Source: (Hair M. S., 2007)
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The Pearson Correlation Coefficient Analysis is used to examine the hypotheses as below:
e-hailing service.
4. Results and Discussion

4.1 Descriptive Statistics
In this research, all the five constructs are measured by using 5-point Likert scale ranging from
1 (strongly disagree/ strongly dissatisfied) to 5 (strongly agree/ strongly satisfied). The
descriptive statistics are summarized in Table 3. The minimum points of security feature over
total respondents are 1.17 and the maximum are 5.00. The mean of the whole data is 3.6617
which was slightly higher than the average of the minimum and maximum which is 3.085.
Besides, the mean of fare is 3.9240, the mean of payment method is 3.8838, the mean of ease
of use is 4.0240 and the mean of customers’ perceptions and satisfaction level is 3.8400.
Table 3: Descriptive Statistics for Constructs

N Minimum Maximum Mean Std. Deviation
Safety Feature 200 1.17 5.00 3.6617 .53751
Fare 200 1.20 5.00 3.9240 .60303
Payment Method 200 1.00 5.00 3.8838 .58072
Ease of Use 200 1.80 5.00 4.0240 .51765
Customers’
Perceptions and 200 1.75 5.00 3.8400 .52108
Satisfaction Level
Valid N (listwise) 200
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4.2 Scale Measurement

4.2.1 Reliability Test
The Cronbach’s Alpha reliability analysis is used to test the reliability of the questionnaire.
Based on Table 4 below, the dependent variable which is customers’ perceptions and
satisfaction level have a reliability of alpha (α) = 0.891 in which α > 0.6. The ease of use will
be the strongest factor that influence customers to choose e-hailing service in which α = 0.770.
Ease of use refers to the convenience in using the e-hailing service. The example of it would
be of no hassle being in the traffic jam. Second factor that influences customers to choose e-
hailing service is fare with α = 0.749. In addition, Cronbach’s Alpha value for other variables
is also greater than 0.6 in which the value for payment method is 0.701 and security feature is
0.744, respectively. Since all the independent variables’ Cronbach’s Alpha value falls between
0.7 to 0.9, we conclude that the reliability of these variables is strength and accepted.
Table 4: Cronbach’s Alpha Value

Variables Number of Item Cronbach’s Alpha
Security Feature 6 0.744
Fare 5 0.749
Payment Method 4 0.701
Ease of Use 5 0.770
Customers’ Perceptions and Satisfaction Level 12 0.891
4.3 Inferential Analysis

4.3.1 Multiple Linear Regression Analysis
The results from the multiple linear regression analysis are shown is Table 5 below. The R
square value is 0.694 and adjusted R square value is 0.688, which means that 69.4% of the
independent variables can influence the dependent variable. The adjusted R Square has the
percentage of 68.8% which is higher than 50%, thus means that the dependent variable which
is customers’ perceptions and satisfaction level is significantly explained by the four
independent variables, which are safety feature, fare, payment method, and ease of use. The
results from Table 6 indicates that security feature is the strongest factor that influence the
customers’ perceptions and satisfaction level, which carries the highest beta value of 0.303.
Meanwhile, ease of use and fare are the least factors that influence the customers’ perceptions
and satisfaction level with the beta values of 0.242 and 0.213, respectively.
Table 5: Model Summary

Adjusted R Std. Error of
Model R R Square Square the Estimate
1 .833a .694 .688 3.49387
a. Predictors: (Constant), EOU, SF, PM, F
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Moreover, based on Table 7, the F value and the p-value are 110.598 and 0.000 (p < 0.05),
respectively. Therefore, it can be concluded that the four independent variables are significant
in explaining customers’ perceptions and satisfaction level on e-hailing service.
Table 6: Coefficient
Unstandardized Standardized
Coefficients Coefficients
Model Beta Std. Error Beta t Sig.
1 (Constant) 1.022 2.217 .461 .645
Security
.588 .094 .303 6.226 .000
Feature
Fare .442 .119 .213 3.721 .000
Payment
.754 .143 .280 5.258 .000
Method
Ease of Use .584 .122 .242 4.771 .000
Table 7: ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression 5400.332 4 1350.083 110.598 .000a
Residual 2380.388 195 12.207
Total 7780.720 199
a. Predictors: (Constant), EOU, SF, PM, F
b. Dependent Variable: DV
4.3.2 Pearson’s Correlation Coefficient

By using Pearson’s Correlation analysis, the strength and direction of the relationship between
the dependent variable and independent variables can be identified by using the r-value. Table
8 shows the result of the correlation coefficients between the dependent variable and
independent variables.
Table 8: Pearson’s Correlation Coefficient Analysis for Constructs

Customers’
Security Payment Perceptions
Ease of Use
Constructs Feature Fare (IV2) Method &
(IV4)
(IV1) (IV3) Satisfaction
Level (DV)
IV1 1
IV2 .544** 1
IV3 .486** .620** 1
IV4 .419** .583** .526** 1
DV .657** .692** .687** .641** 1
N = 200, **Correlation is significant at the 0.01 level (2-tailed).
The results show that there is a significant positive correlation between the dependent variable
and independent variables, given the r-value of 0.4 and above. Fare shows a positive significant
and moderate relationship to the customers’ perceptions and satisfaction level, which has an r-
value of 0.692. This followed by the payment method which has a positive significant and
moderate relationship to the customers’ perceptions and satisfaction level with r-value of 0.687.
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4.3.3 Hypothesis Testing

Security Feature
Based on the Table 6, the significant level of 0.000 is lower than 0.05 (p < 0.05). As conclusion,
there is a significant relationship between security feature and customers’ perceptions and
satisfaction level of e-hailing service. Therefore, H1 is rejected.
Fare
e-hailing service.
Based on the Table 6, the significant level of 0.000 is lower than 0.05 (p < 0.05). Therefore,
there is a significant relationship between fare and customers’ perceptions and satisfaction level
of e-hailing service. As a conclusion, we reject H2.
Payment Method
Table 6 shows that the significant level of the result is 0.000 which lower than 0.05. Therefore,
there is a significant relationship between payment method and customers’ perceptions and
satisfaction level of e-hailing service. Thus, H3 is rejected.
Ease of Use
Table 6 shows that the significant level of the result is 0.000 which lower than 0.05. Therefore,
there is a significant relationship between ease of use and customers’ perceptions and
satisfaction level of e-hailing service. Thus, we cannot accept H4.
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5. Conclusion
This research examines the factors that influence the customers’ perceptions and satisfaction
level of e-hailing service in the Klang Valley. There are several implications that has been
derived from the results. Firstly, the customers generally have a very positive and encouraging
view on the e-hailing industry in the Klang Valley. This can be proved by the respondent’s
answer on their view on the outlook of e-hailing industry. Most of the users think that the
industry is encouraging and can be improved given the percentage of 53.5% or 107 respondents
over the total of 200. This also means that they are generally quite satisfied with the service by
this industry.
Next, the management of various e-hailing companies can look forward to promoting their
service based on the strengths of the industry that is safety, affordable fare, flexibility in
payment method and ease of use. It will then attract more customers to engage in their services
as it really can help people to commute around. It must be said that suitable marketing must be
done to attract people of different background and age group.
As a conclusion, the customers generally have a positive and encouraging view on the e-hailing
industry and they are quite satisfied with it. Most of them opt for e-hailing because of their
safety, flexibility in payment method, ease of use and the affordable fares provided by these e-
hailing service. Moreover, people can generally save more if they travel by using e-hailing
service as compared to their own vehicle due to the costs of petrol, parking fees and
maintenance cost that needs to be considered. Therefore, e-hailing is the new form of
commuting from one place to another which offers more comfort and convenience to the
customer.
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Exploring Factors Influencing E-Hailing Services in Klang Valley, Malaysia

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International Journal of Business and Economy

eISSN: 2682-8359 | Vol. 3, No. 1, 32-46, 2021

International Journal of Business and Economy (IJBEC)

EXPLORING FACTORS INFLUENCING E-HAILING

Ooi Bee Chen1* and Shafinaz Ahmad Nazar2

*Corresponding author: ooibc@utar.edu.my

Abstract: The usage of the smartphone has become

Keywords: e-hailing, smartphone, customers’

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Figure 1: Conceptual Framework

From the conceptual framework, the following hypotheses were formulated:

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2.2 Problem Statement

3.2 Survey Design and Data Collection

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3.3 Data Analysis

3.4 Descriptive Analysis

3.5 Scale Measurement

Table 1: Cronbach’s Alpha Strength Association

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3.6 Inferential Analysis

Y = α + β1X1 + B2X2 + B3X3 + B4X4 + ɛ

3.6.2 Pearson Correlation Coefficient Analysis

Table 2: Rule of Thumb about Correlation Coefficient Size

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4. Results and Discussion

Table 3: Descriptive Statistics for Constructs

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4.2 Scale Measurement

Table 4: Cronbach’s Alpha Value

4.3 Inferential Analysis

Table 5: Model Summary

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4.3.2 Pearson’s Correlation Coefficient

Table 8: Pearson’s Correlation Coefficient Analysis for Constructs

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4.3.3 Hypothesis Testing

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Copyright © 2021 ACADEMIA INDUSTRY NETWORKS. All rights reserved

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