Exploring consumer preference for taxis against ridesourcing services: an integrated choice and latent variable approach in Seoul, Korea

Sunghoon Jang, Doosun Hong, Chungwon Lee

Research output: Chapter in Book/Report/Conference proceedingConference contributionAcademicpeer-review

Abstract

With the emergence of ride-sourcing services based on the development of smart mobile devices, many countries are considering introducing this type of service. From the government's point of view, improving consumers' preference for taxis against ride-sourcing services is essential to introduce the new service, considering the serious collapse of the taxi industry by introducing the service in the United States. For a comprehensive understanding of consumers’ preference for taxis, we consider several types of variables, including not only level-of-service variables and socio-demographic characteristics but also travel experience using taxis, mobile usage pattern, trip purpose, and consumers’ latent attitudes into a model based on the integrated choice and latent variable structure. The results indicate that the model performs well. We identified how consumers’ preference for a taxi can be improved in Seoul, Korea. First, taxis show the highest elasticity for waiting time. The shorter waiting time would significantly improve consumers’ preference. As consumers become more familiar with use of the smartphone, their preference for a taxi is lower. Thus, it is necessary to introduce various taxi services linked to smartphones, such as e-hailing. The experience of being denied taxi service dramatically decreases consumers’ preference for taxis. Such illegal actions should be prohibited. Among the several latent aspects, consumers’ negative perception of service in vehicles is the most important factor in reducing their preference for taxis. Thus, taxi service must be improved if taxis are to survive.
Original languageEnglish
Title of host publicationTransportation Research Board 99th Annual Meeting
Number of pages25
Publication statusPublished - 13 Jan 2020
Event99th Annual Meeting of the Transportation Research Board - Walter E. Washington Convention Center, Washington, D.C., United States , Washington, United States
Duration: 12 Jan 202016 Jan 2020

Conference

Conference99th Annual Meeting of the Transportation Research Board
Abbreviated title2020 TRB
CountryUnited States
CityWashington
Period12/01/2016/01/20

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