Adoption and frequency of motorcycle and car-based ride-hailing use across income groups in Yogyakarta, Indonesia

Abstract

In the Western setting, ride-hailing has gained widespread acceptance as a car-based (RH CAR) and on-demand transportation service over the last decade. However, in South-East Asia, due to a high prevalence of private motorcycle ownership, motorcycle-based ride-hailing (RH MC) has become more popular than RH CAR. In this study, we aim to examine ride-hailing usage among different income groups, specifically among above and below the poverty line communities, to identify potential differences in the adoption of ride-hailing services across both population segments. This paper investigates the adoption and frequency of use for RH MC and RH CAR in the Indonesian context. We conducted an analysis using primary data collected in Yogyakarta Province, Indonesia using binary logistic and random effect ordered logistic panel models, both before and during the COVID-19 pandemic. The results indicate that those living in poverty is less inclined to use ride-hailing services, and even when they do, their usage frequency is lower compared to the middle-high-income group. In general, our findings indicate that ride-hailing adopters are more frequently women, middle-young people, having middle-higher income and residents of urban areas. Based on the frequency of ride-hailing use, we found that RH CAR is commonly utilized by higher-income groups. This study suggests that middle-higher income individuals tend to use ride-hailing services more frequently, whether for RH MC or RH CAR. In light of these findings, we propose policy recommendations aimed at reducing transport poverty and enhancing mobility equity.