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Impact of customer satisfaction on Ride sharing services performance in
Bangladesh
Md Abid Hossain1, Mohammad Sakib2, Fatema Akter Dina3

Abstract
App-based ride-sharing service has revolutionized transportation in Bangladesh, mostly in
Dhaka metropolis for convenience seekers. The primary goal of this research is to measure
customer satisfaction through three dimensions factors (Fare, availability of vehicles, Drivers’
attitude and behavior) by collecting data through online questionnaires. The level of importance
of each dimension were also measured and explained from the findings. In this study, data had
been collected from 100 samples through fostering a structured questionnaire among the riders
where 43 were in age range 18-20, 36 were 21-23 age range and 21 were between 24-26 who
responded about the selected factors are affecting or not regarding riding services of Ride
sharing services. This study also dealt with the satisfaction level of riders for Ride sharing
services according to the three dimensions and findings implied that how much impact of the
dimensions have on the satisfaction level. This research has emphasized on the three dimensions
where independent variables can explain 30% variation of dependent variables which indicates
this study had explained less relevant dimensions. The study will be helpful for ride-sharing
service providers to fulfill the most influential factor of the riders

Key words: Ride sharing services, Customer satisfaction, Satisfaction dimensions, Share
economy

Introduction
Ride-sharing refers to the common use of a motor vehicle by a driver and one or several
passengers, in order to share the costs (non-profit) or to compensate the driver (i.e., paid service)
using billing information provided by the participants (for profit). In short, ride-sharing platforms
refer to official providers or companies of ride-sharing services. (Lambros Mitropoulos, 7th
December, 2021). Using the phone app, customers can enter their location in Bangladesh and
request a driver. Typically, customers can see how long they’ll have to wait for a car before one
gets assigned to pick them up. They can also see if enough drivers are in the area. After placing
an order for the ride, the customer can track their car as they wait to get picked up. The customer
pays through the app and the driver gets paid directly through the app as-well. (Helling, October
7, 2021). Nowadays ride-sharing service has become very popular in developed as well as in

1
Student of Marketing, Faculty of business studies, University of Dhaka
2
Student of Marketing, Faculty of business studies, University of Dhaka
3
Student of Marketing, Faculty of business studies, University of Dhaka
developing countries. Consequently,
academic researchers, entrepreneurs,
business persons, innovators, and policy-
makers are showing greater interest in the
nature and impacts of this ridesharing
service on economies. From a business
perspective, this service can create more
opportunities in terms of market share and
social benefits. Some of the ride-sharing
companies started their operations in
Bangladesh like uber, Pathao, Amarbike,
Taxiwala, Garivara, Chalo, Sohoj ride,
Obhai, Obon, and others. Within a short
time, these companies launched innovative
technology to make the mobility of the
people more conveniently and flexible
(Saiful Islam, 2019). In this paper, we will
try to focus on Ride sharing services as it is
one of the most used rides sharing services
in Bangladesh. Ride sharing services is a
global ride-sharing app. It basically connects
people by their app for ride sharing. They
are globally recognized company. Ride
sharing services has launched its operation
in Dhaka city in 2017. Now they are in good
position and has become a great alternative
to mass transport services. It is a Ride
Sharing service which is app-based
transportation solution currently available in
Dhaka, Bangladesh. It has a Community
Guidelines about safety feature and standard
Research Problem
As this study focuses on major ride sharing
service, some factors are considered as the
challenges to customer satisfaction which
may have impact on the satisfaction level.
Previous papers talked about “Customers’
Expectations Meet Perceptions or Not: App-
Based Ride-Sharing Services by Ride
sharing services and Pathao in Dhaka City”,
“passengers’-ride sharing services adoption
intention and actual adoption behavior from
ride. They are fully committed to helping to
create a safe environment for their valuable
users. They have motto “Earn Money by
Driving or Get a Ride Now” and “Get in the
driver’s seat and get paid” They always first
focused on safety, wherever you go in
Bangladesh. Pathao is the best motorbike
online ordering rent a car in Bangladesh and
started its journey from 2015. It is now in
top position for motorbike ride sharing in
Dhaka. As we know Dhaka is a very busy
city, it saves time by avoiding traffic in
Dhaka city. You can go anywhere in Dhaka
city within short time by Pathao motor bike.
It is very cheap as well. They have motto
“Moving Safely”. Moreover, it has with a
rapid response team who are engaging with
call center support, insurance coverage, live
location share and more. Shohoz has been
popular and trusted among the travelers for
online ticketing services for Bus and Launch
rides. Shohoz Ride is a popular and fast-
growing Bangladesh based ride-sharing app.
If you want to go any place of our country
by any ride, you can request any nearby
Shohoz Rides partner to pick you up and
drop at your destination. There are lots of
Shohoz Rides motorbike freelancers are
working in Dhaka city to help you sharing
ride (bdbusinessfinder, 2021).
Bangladesh perspective”, “introduction of
Ride sharing services in Dhaka”, “present
condition of ride-sharing service in
Bangladesh” but didn’t show how certain
factors effect on ride sharing service
passengers’ satisfaction. And through this
research paper we will try to identify how
some certain factors have impact on
passengers’ satisfaction level and these
factors are Fare, Availability of vehicles,
Driver’s attitude and behavior, Vehicle positive result by measuring these factors
condition and this study is expecting to have with satisfaction level.

Research Objectives
The main purpose of this study is to examine 2.Measuring customer satisfaction through
whether factors have major impact on three dimensions factors.
customers satisfaction regarding app-based
3.To recommend for minimizing
ride-sharing service offered by Ride sharing
passengers’ dissatisfaction with Ride sharing
servicess, pathao, shohoz in Dhaka city. The
services service by increasing service
major objectives of this study are:
quality and other factors in Dhaka city.
1.Identifying factors influencing customer’
satisfaction.

Literature review
Related studies: The ride-share market in
Dhaka estimated 2 lakh and occupied 23%
market share in transport services in a year
signaling rapid expansion in Dhaka; Ride
sharing servicess-Pathao contributing most
among these (Sadat, 2018). Merriam-
webster define rideshare as a service or
network through which ride-sharing trips are
arranged. Ride sharing service is type of
shared economic system. Ridesharing
service is an emerging mode of transport
that positively contributes to economic,
environmental, and social sustainability
(Geisberger et al., 2009; Hansen et al.,
2010). Our paper is inspired from many
established Bangladeshi and foreign work.

Table 1: shows the objects, the insights they presented and the limitation of those paper

Author/date Objectives Findings Limitation

Kumar, Jafarinaimi A qualitative a small segment of the The paper focused on

and Bin Morshed investigation of the population, such as Ride sharing services’
(2018) introduction of Ride women of a certain effect on economy
sharing services in socio-economic status, and how it influenced
Dhaka. tech-savvy drivers who transportation on
own vehicles, or local Bangladesh. But it
innovators may have didn’t include the
benefited from Ride customer satisfaction
sharing services’ roll-
 out, we also observed & factors influencing
that the introduction & it.
adoption of Ride
sharing services in
Dhaka resulted in
participants’
experiences of
oppression, surfacing
cultural imperialism,
marginalization,
powerlessness,
exploitation, &
violence
S Islam, E Huda, F to identify the With 164 respondents The paper didn’t
Nasrin, 2019 present condition of and analyzing them include or
ride-sharing service using simple investigates factors
in Bangladesh and descriptive statistics the individually and the
to determine the paper found customer impact they have on
benefits and mostly prefer Ride customer satisfaction
challenges of this sharing services (40%) h.
service and third, to and satisfied with the
explore the Ride sharing services
prospects of ride- service among other
sharing service in services. It concluded
Bangladesh. saying customer mostly
prefer car service from
Ride sharing services
service.
Bappy, Shariful, The paper was predicted the The participants of
Samiya, Nazmul, aimed at predicting passengers’ Ride this study represent
2020 the passengers’ Ride sharing services only the commuters
sharing services adoption behavior from of Dhaka city, the
adoption intention sample of 310 capital of Bangladesh.
and actual adoption passengers in an age Hence, subsequent
behavior from a range between 23 and studies can cover the
Bangladeshi context 55. The result respondents of other
confirmed that the cities of Bangladesh
users expect that Ride where Ride sharing
sharing services will services are available.
improve their mobility
performance,
efficiency, comfort, and
 convenience, they will
have a higher intention
to adopt.

Phebe and Nelson Determined how to the results showed The paper had
(2021) allocate the total customer satisfaction insights and defined
ride cost between has its unique many pricing
the driver and the advantages and that the strategies but the
passengers discount methods can dimensions couldn’t
successfully reduce the explain customer
number of no- needs and want.
passenger vehicles for a
large ride-sharing
system.

Khade & Patil, studied customer The study revealed that The theory and model
(2018) satisfaction level of 68% of the respondents showed the effect on
Ride sharing were satisfied with the ride sharing services
services paid taxi app and the comfort but didn’t solely focus
services in Pune city level provided by the on customer
paid taxi services. Also, satisfactions.
86% respondents were
satisfied with the
payment options and
54% respondents
agreed while 23%
respondents strongly
agreed the security of
woman using Ride
sharing services found
in the study.
Muftawu, Ibrahim Investigates the using Partial Least The study was done
(2021) effects of Squares-Structural in Ghana, whose
gratification, trust, Equation Modeling economy, social class,
and platform quality (PLS-SEM) and he customer expectations
on the acceptancy of Uses and Gratification are different than
ride-sharing services (U&G) theory with 33 Bangladesh. So, the
respondents of ride- model might work
 sharing services in and show the same
Ghana the research result or it may not.
proves the integrative
benefits, trust,
enjoyment and platform
quality have on
customer satisfaction

Hypothesis Development match customer expectation, the satisfaction

Customer satisfaction is an individual
deliberation whether they satisfy or
dissatisfy regarding individuals’
expectations of product or service
performance (Kotler & Keller, 2006). For
our studies we’ve consider three dimensions
of customer satisfaction. Our goal is to
investigate these factors that affects
customer choice and motivates them to
choose a particular ride sharing service
while exclude other. Also, we going to see
how these factors affect their (ride-sharing
services) business activity such as
popularity, revenue stream, positioning and
overall impact on shared economy. The
three dimensions are Fare, Availability of
vehicle, Drivers’ Attitude and Behavior.
Fare
Fare is the amount of money customers are
charged for their trip using ride sharing
services. The price per kilometers is set by
ride sharing services depending on time of
the day. Fare plays a big factor on customer
satisfaction. (Akhi, 2021)’s study on ride
sharing services fare revealed that the
scarcity of vehicle, ride sharing facility
increases the fare in the evening. If a
customer wants more comfortable journey,
they can choose xl which charge more than
usual amount but provides additional
services. So, when the fare of a ride doesn’t
level lowers. We’re going to use per
kilometer charge, Average charge and offers
and discount as variable to total fare charged
by ride sharing services.
H1: Fare has significance impact on ride
share customer satisfaction
Availability of vehicles
Andaleeb, Haq, and Ahmed (2007) in their
study identified that the citizen of Dhaka
faces problems of not having a personal car
where quality public transport facilities is
also very fragile. Ride sharing services
provides ride service that is easy to use.
H2: Availability of vehicles has significance
impact on ride sharing customer’s
satisfaction.
Driver’s attitude and behavior
Attitude can be viewed as an individual’s
favorable or unfavorable assessments,
sentiments and propensities with respect to a
certain conduct, thing, or an idea (Kotler et
al.; 2014). Driver’s attitude towards
customers can have positive and negative
impact on customers experience. Most
service business requires mandatory
employee training on customer orientation
but as ride sharing services is an online
share-economy business they don’t provide
it. They provide driver’s instruction and
guideline but following those guidelines are
up to the drivers himself.
H3: Driver’s attitude has significance
impact on ride sharing customer’s
satisfaction.
Methodology
Research Design
The mixed method design was used in this
project. A qualitative and quantitative
research technique were both used in this
study. Primary data were gathered via the
use of a survey, while secondary data were
compiled and evaluated from a previously
published research study. Because this is a
causal investigation, a regression analysis
was performed among the six variables.
Customers; satisfaction is the dependent
variable, while the three dimensions are
independent variables that might have an
impact on the dependent variable, which is
shown in the illustration.
Data Collection and Sample Selection
To conduct this inquiry, The opinions of the
respondents were gathered via the use of an
online survey questionnaire. The responses
were taken from all around Bangladesh,
although the majority of them were from
Dhaka and Chattogram, as one would
expect. The sample size for the survey is
100 people. From 100 respondent 43 were in
age range 18-20, 36 were between 21-23 and
21 were between 24-26. We gathered
information from a variety of individuals
with varying levels of knowledge about ride
Research Framework
sharing servicesand who have also used it in
the previously. The majority of responders
are employed or are students who using it on
a regular basis.
A google survey question is created in
which we ask 11 questions on the pricing,
promotional code, driver attitude,
availability of the service, vehicle conditions
among other factors. In this study,
descriptive statistics were utilized to
examine the data received from both
sources. A variety of charts, tables, and
figures were used to assess their overall
usability as well as provide suggestions on
how to improve the usability of ridesharing
apps. Responses from users of ridesharing
services were gathered in an anonymous
manner. The questionnaire (in the form of a
Google form) was also sent out through
email and social media channels.
Measures and Scales
It was decided to implement the scale from
Parasuraman et al. in order to achieve
consistency (1985). The study used Likert
scale, ranging from strongly disagree (1) to
strongly agree (5) where neutral is 3. In
addition, there are certain polar questions in
which 1 is picked as Yes and 0 is selected as
No, respectively. In the questionnaire, the Statistical Tool
questions were divided into two categories:
This study employed SPSS version 23 to
dependent factors were addressed in the first
conduct the regression analysis.
question, and independent variables were
covered in the remaining questions.

Analysis
Model Summary

Model Summary
Adjusted R Std. Error of the
Model R R Square Square Estimate
a
1 .549 .301 .223 .436
a. Predictors: (Constant), ratingofdriver, preferreddiscount, driversattitude,
serviceavailable, latearrival, cosiderdriverbehaviour, faresatisfaction,
preferredpaymentoption, caravailability, fareaffortability

Table 2: Model Summary

R or coefficient of multiple correlation,
indicates positive relationship between
independent variables and dependent
variables. Because the value is .549 or
54.9% which is greater than 50%. R square
or co-efficient of determination value is .301
which indicates independent variables can
explain 30.1% variation of dependent
variables. And adj r square interprets
ANOVA Analysis
whether more variable can explain the
equation more. The difference between adj
R square and R square is (.301-.223) or
.078/7.8% because it is more than 5% so it
indicates this study has explained less
relevant variables. Our adjusted R square
indicate more variables could have been
included in the research.

ANOVAa
Sum of Mean
Model Squares df Square F Sig.
1 Regressi 7.286 10 .729 3.863 .000b
on
Residual 16.904 89 .190
Total 24.190 99
a. Dependent Variable: customersatisfaction
 b. Predictors: (Constant), ratingofdriver, preferreddiscount, driversattitude,
serviceavailable, latearrival, cosiderdriverbehaviour, faresatisfaction,
preferredpaymentoption, caravailability, fareaffortability

Table 3: ANOVA Tab

ANOVA table shows the level of
significance is 0.004 or .04% which is less
than .05 (.000<.05) so the null hypothesis is
rejected. Also, for f test the f test critical
value is 1.938 (found from degree of
freedom 10, for regression and 89, for
ANOVA (H1)
residual) and the calculated f test is 3.863
which is larger than critical value. So, taking
both two calculations in account, in
conclusion the null hypothesis is reject. And
our factors have positive relation with
customer service of ride sharing services.

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.908 4 .727 3.246 .015b
Residual 21.282 95 .224
Total 24.190 99
a. Dependent Variable: customersatisfaction
b. Predictors: (Constant), preferredpaymentoption, faresatisfaction, preferreddiscount,
fareaffortability

Table 4: ANOVA OF HYPOTHESIS H1

The calculated value 3.246 is more than the critical value 2.46. So, accept the hypothesis 1

ANOVA (H2)

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 2.002 3 .667 2.887 .040b
Residual 22.188 96 .231
Total 24.190 99
a. Dependent Variable: customersatisfaction
b. Predictors: (Constant), serviceavailable, latearrival, caravailability
Table 5: ANOVA OF HYPOTHESIS H2
The calculated value 2.887 is more than the critical value 2.69. So, accept the hypothesis 2

ANOVA (H3)

ANOVAa
Model Sum of Squares df Mean Square F Sig.
1 Regression 1.915 3 .638 2.751 .047b
Residual 22.275 96 .232
Total 24.190 99
a. Dependent Variable: customersatisfaction
b. Predictors: (Constant), ratingofdriver, cosiderdriverbehaviour, driversattitude

Table 6: ANOVA OF HYPOTHESIS H3

The calculated value 2.751 is more than the critical value 2.69. So, accept the hypothesis 3

Hypothesis Variables Accept/reject

H1: Fare has significance impact on Ride Fare affordability Reject null hypothesis
sharing servicess’s customer satisfaction H0
Per kilo charge
Preferred payment
option
Preferred discount

H2: Availability of vehicles has significance Most available Reject Null

impact on ride sharing servicescustomer’s service Hypothesis H0
satisfaction
Car service
availability
Late arrival
 H3: Driver’s attitude has significance impact Drivers’ behavior Reject Null
on ride sharing service customer’s satisfaction Hypothesis H0
Driver’s attitude
Higher star rating

Table 7: Hypothesis Explain

Regression Analysis

Coefficientsa
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -.601 .448 -1.342 .183
fareaffortability .060 .068 -.116 -.876 .383
perkilocharge .311 .132 .307 2.368 .020
preferreddiscount .057 .041 .132 1.390 .168
driversattitude -.109 .057 -.179 -1.904 .060
cosiderdriverbehaviou .067 .143 -.045 -.470 .639
r
caravailability .079 .060 .126 1.299 .197
latearrival .280 .102 .259 2.749 .007
preferredpaymentopti .098 .036 .261 2.743 .007
on
serviceavailable .154 .115 .127 1.334 .186
ratingofdriver .145 .058 .251 2.508 .014
a. Dependent Variable: customersatisfaction

Table 8: Coefficients Table

As we know the regression equation is
Y= ß0 +ß1X1 + ß2X2 + ß3X3 + ß4X4 + ß5X5+ ß6X6+ ß7X7+ ß8X8+ ß9X9+ ß10X10+ei
Here Y is dependent variable and X are independent variable. So, if you consider customer
satisfaction of ride sharing services Y and fare offer, fare satisfaction, satisfaction per kilo price,
drivers attitude, consider driver, car availability, late arrival, time of the day, vehicle condition
and uxui X vales then the new regression equation goes like this:
Fare affordability, preferred payment option, car availability, consider driver behavior,
preferred discount, drivers’ attitude, rating of driver, late arrival, service available, fare
satisfaction
Ride sharing services’ customer satisfaction= ß0+ß1*Fare affordability+ ß2*per_kilo_charge+
ß3*Preferred discount+ ß4*drivers attitude+ ß5*consider_driver_behavior
+ß6*car_availability+ß7*Late_arrival+ß8*preferred_payment_method+ß9*service_availability+
ß10_rating_of_drivers+error
And putting value of betas from table 4 the regression equation is:
Ride_sharing_services’s_customer_satisfaction=
-.601+(.060)*Fare_affordability+(.311)*Fare_satisfaction+(.057)*Preferred_discount + (-
.109)*drivers_attitude+(.067)*consider_driver_behavior+(.079)*car_availability+(.280)*Late_ar
rival+(.098)*preferred_payment_method+(.154)*service_availability
+(.145)*_rating_of_drivers+error
The constant is negative so if all the dimensions remain unchanged the satisfaction will result in
negative. Fare affordability, fare satisfaction, preferred discount, driver behavior, car availability,
late arrival, preferred payment method and service availability has a positive effect on
satisfaction.

Findings and Discussions riders must be reduced by ride sharing

services system management. ride sharing
This research has identified that fare has the
services need to ensure availability of
most influential effect on ride sharing
vehicles in their service offerings all the
services’ customer satisfaction because
places in Bangladesh, specially within city
according to F statistics the calculated value
corporation areas and also the availability
is 3.246 which is much higher than the
should be on time. Because availability of
critical value (2.46). The findings which
vehicles is quite essential effect on customer
were collected majorly from student
satisfaction as customers can take or use
respondents implied that moderate fare with
alternatives if adequate vehicles are not
much comfort has impact on the
available within their locations. This paper
respondents’ satisfaction level as fare is one
also dealt with driver’s attitude towards
of the major drivers for satisfaction level.
customers which has significant impact on
62% of the participant responded that they
customer satisfaction levels. Sometimes
are not happy with current pricing and like
driver’s attitude is positive and polite to the
to see some changes. As fare is calculated
customer and one the other hand some
through app systems which is pretty much to
drivers don’t show a positive attitude to the
calculate and can create confusion about
customer can easily affect customers’
overcharging which may create difficulties
satisfaction. As most of the respondents
for drivers to explain to the riders. Lack of
were students in profession so this factor is a
transparency in the fare breakdown which
major driver for their riding satisfaction.
can create tension and suspicion for the
Ride sharing services should focus on this
gap to make more concern about the listed
driver’s attitude and behavior.
Limitations & Implications
In this research design, only survey method
has been used, interview method couldn’t be
used because of Covid-19 which is the main
reason of inadequate data collection. Only
100 respondents were included in this
research paper and out of these 100 samples,
most of the respondents were students in
occupation so as small number of
respondents of different occupations are
included in this study. This paper
concentrated on majorly three dimensions
related to customer satisfaction of Ride
sharing services (Fare, Availability of
Conclusion
Ride sharing services is a tech business that
integrates the real and digital worlds to
allow everyone, everywhere to move at the
touch of a button. Because they think that
everyone should have equal access to
movement. As a result, riders will be able to
move around safely. In a way that is
environmentally friendly. Also, they have
always been providing convenience and
cashless service to the riders by which app
users can pay from any locations through
mobile services and at the destination, the
driver stops the car and the passenger can
walk away. Flexible and safe services are
adding value to customer satisfaction for
Ride sharing services’ value proposition.
However, the current pricing should be
reviewed. Currently uber is charging 18-
21tk per kilometer with 2-3tk per min, on
the other hand Pathao is charging 15-25tk
and 2tk/min. So, the pricing is pretty
vehicles, Driver’s attitude) but there are
other factors which can affect the level of
customer satisfaction which can take in
considerations such as responsiveness,
affordability, reliability etc. A major
boundary of this study is that all the
variables are from qualitative data which
may limit the accurate results of the research
objectives, as none of the factors are
quantitative. This study isn’t based on huge
sampling or data collection and not enough
data-based research. App performance and
features, Quality of customer support,
feedback process are some other variables
which couldn’t be covered in this paper.
competitive. Instead of being competitive,
try to be economical. If fare calculation can
be made less complex with system
management, then drivers might be able to
make riders understand easily about the
estimated price because fare has significant
effect on riders’ value satisfaction. Or
questionnaire show customer are frustrated
with digital payment service provided by the
services. Some commented that rider don’t
want to accept bkash or card payment. They
want the customer to pay cash which is
unreasonable. Ride sharing services should
look into and investigate the reason behind
the complaints. Ride sharing services in
Bangladesh have made a significant
difference in terms of Fare, Availability,
Drivers’ behavior while providing high-
quality services. Some services failed to
deliver on its promises. Customers are 63
percent dissatisfied as a result of the
inability to access consumer feedback.
Frequent, immediate complaint
management, and the lack of a customer call
center open 24 hours a day, 7 days a week
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