Service Quality and Customer Satisfaction with AI-Enabled App-Based Ride-Sharing: Evidence from Uber Users in Bangladesh
This study of 385 Uber users in Bangladesh reveals that while price fairness and value are initially linked to satisfaction, service quality dimensions—specifically assurance, reliability, and responsiveness—are the primary drivers of customer satisfaction, which in turn strongly predicts continued use and loyalty.
Original paper licensed under CC BY 4.0 (https://creativecommons.org/licenses/by/4.0/). This is an AI-generated explanation of the paper below. It is not written or endorsed by the authors. For technical accuracy, refer to the original paper. Read full disclaimer
In the bustling cities of Bangladesh, the way people move has changed. Instead of hailing a taxi on the street corner, many now summon a ride through a smartphone app. This shift relies on a complex mix of technology and human interaction. Behind the screen, algorithms match passengers with drivers, calculate routes, and set prices. But for the person sitting in the back seat, the experience is not just about code; it is about whether the car arrives on time, if the driver is polite, if the ride feels safe, and if the fare seems fair. Researchers have long studied how these different parts of a service combine to make a customer happy. They look at reliability, which is simply whether things happen as promised; responsiveness, or how quickly help is given when things go wrong; and assurance, which is the feeling of trust and confidence in the person driving you. When these elements work well, people feel satisfied. When they feel satisfied, they are more likely to use the service again and recommend it to others. Understanding exactly which of these factors matters most is crucial for companies trying to improve their service and for the people who rely on them every day.
A team of researchers at Shanto-Mariam University of Creative Technology set out to understand this dynamic specifically within the context of Uber users in Bangladesh. They wanted to know which parts of the ride-sharing experience actually drive customer satisfaction and, in turn, encourage people to keep using the app. To find the answer, they surveyed 385 people who had recently used Uber. These respondents were asked to rate their experiences on a scale from one to five, covering everything from how dependable the pickup was to how fair they thought the price was. The researchers then looked closely at the data to see which ratings were the strongest predictors of a happy customer.
The study revealed a clear hierarchy of what matters most to these riders. The most powerful drivers of satisfaction were not the price or the perceived value of the ride, but rather the core elements of service execution. The strongest factor was assurance, which in this context refers to the confidence a passenger feels in the driver and the platform. When riders felt safe, trusted the driver's competence, and believed the platform was reliable, their overall satisfaction soared. Closely following this were reliability and responsiveness. Reliability meant the car arrived when expected and the trip went smoothly, while responsiveness referred to how well the system and driver handled any issues or questions that came up during the journey. These three factors together formed the backbone of a positive experience.
Interestingly, the study found that while safety is important, it plays a slightly different role. Perceived safety did contribute to satisfaction, but its influence was smaller than that of the service quality factors. This suggests that while riders expect to be safe, their happiness is more heavily influenced by how well the service is delivered day-to-day. Perhaps most surprisingly, the researchers discovered that price fairness and the overall sense of getting good value did not stand out as unique drivers of satisfaction when all the other factors were considered at the same time. In simpler terms, a rider might think the price is fair, but if the driver is rude or the car never shows up, the low price will not make them happy. Conversely, a rider might accept a higher price if the service is dependable, safe, and professional. The data showed that price and value were positively related to satisfaction when looked at on their own, but once the quality of the service was taken into account, their unique importance faded.
The researchers also traced what happens after a rider feels satisfied. They found a strong link between a satisfied customer and their future behavior. People who reported being happy with their rides were significantly more likely to intend to use the service again and to remain loyal to the platform. This confirms that satisfaction acts as a bridge between the immediate experience of a single trip and the long-term decision to keep using the service. However, the authors were careful to note the limits of their work. The survey was conducted at a single point in time, so it shows a connection but cannot prove that one thing causes the other in a strict sense. Additionally, the researchers acknowledged that the way they measured some of these feelings was not perfect, meaning the exact strength of these relationships might vary in future studies.
Ultimately, this research offers a grounded view of how people in Bangladesh experience app-based ride-sharing. It suggests that for platforms to succeed, they should focus less on competing solely on price and more on building trust and ensuring that every trip is dependable and responsive. The technology that matches the rider to the car is the stage, but the performance of the human driver and the reliability of the service are what truly win the customer's loyalty. By understanding that confidence and execution matter more than the fare itself, companies can build better services that people want to use again and again.
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