Applying theory to empirical phenomena: Love-hate relationship of e-hailing driver-platform provider in the sharing-economy services
List of Authors
  • Nor Irwani Abdul Rahman , Rozailin Abdul Rahman

Keyword
  • E-hailing driver; Sharing economy-services; Commitment-trust theory; Social exchange theory

Abstract
  • The appearance of sharing economy-services has impacted customers’ lifestyle in different ways. E-hailing services, particularly, is one of the examples, which constituted from the new category of services, prominently demonstrated a great performance for nearly a decade. However, as life is full of challenges, none of us can be exempted. Despite of the remarkable victory, the service industry was in a battle with the “conventional regulatory requirement” in various countries. For instance, the issues of drivers’ welfare and well-being have been debated frequently, but still it resulted to unconvincing decision. Consequently, this study has reviewed the commitment–trust theory and social exchange theory to further explain the never-ended “love-hate relationship” story of the e-hailing driver and platform provider. Our discussion acknowledged that theoretical link of relationship benefits and relationship commitment is workable, on the ground of drivers’ welfare and well-being, in return to create a mutual exchange in their relationship. Together with that, theoretical and practical implications were discussed in depth.

Reference
  • 1. Agensi Pengangkutan Awam Darat Malaysia (APAD). (2018). Garis Panduan Panduan Perkhidmatan E-hailing di Bawah Perniagaan Pengantaraan. Retrieved from https://www.apad.gov.my/sites/default/files/garispanduanbil22018garispanduanperkhidmatane-hailingdibawahperniagaanpengantaraancompressed.pdf

    2. Amirnuddin, P. S., Turner, J. J., Nazrin, A., & Kamarulzaman, A. (2017). The Deregulation Dilemma : Insight into Perspectives of the Taxi Industry in Malaysia. Law Review, (February 2017), 90–119.

    3. Anderson, D. N. (2014). “Not just a taxi”? For-profit ridesharing, driver strategies, and VMT. Transportation, 41(5), 1099–1117. https://doi.org/10.1007/s11116-014-9531-8

    4. Aurier, P., & N’Goala, G. (2010). The differing and mediating roles of trust and relationship commitment in service relationship maintenance and development. Journal of the Academy of Marketing Science, 38(3), 303–325. https://doi.org/10.1007/s11747-009-0163-z

    5. Bardhi, F., & Eckhardt, G. M. (2012). Access-Based Consumption: The Case of Car Sharing. Journal of Consumer Research, 39(4), 881–898. https://doi.org/10.1086/666376

    6. Belk, R. (2007). Why Not Share Rather Than Own? The ANNALS of the American Academy of Political and Social Science, 611(1), 126–140. https://doi.org/10.1177/0002716206298483

    7. Belk, R. (2010). Sharing. Journal of Consumer Research, 36(5), 715–734. https://doi.org/10.1086/612649

    8. Belk, R. (2014). You are what you can access : Sharing and collaborative consumption online. Journal of Business Research, 67(8), 1595–1600. https://doi.org/10.1016/j.jbusres.2013.10.001

    9. Blau, P. M. (1967). Exchange and power in social life. New York; London; Sydney: John Wiley & Sons, INC.

    10. Bolton, R. N., & Lemon, K. N. (1999). A Dynamic Model of Customers’ Usage of Services: Usage as an Antecedent and Consequence of Satisfaction. Journal of Marketing Research, 36(2), 171–186. https://doi.org/10.2307/3152091

    11. Botsman, R., & Rogers, R. (2010). Beyond Zipcar: Collaborative Consumption. Harvard Business Review, 88(10), 33.

    12. Botti, S., & McGill, A. L. (2011). The Locus of Choice: Personal Causality and Satisfaction with Hedonic and Utilitarian Decisions. Journal of Consumer Research, 37(6), 1065–1078. https://doi.org/10.1086/656570

    13. Browne, R. (2021). Uber employment rights setback is a ‘gut punch’ to its prospects in the UK. CNBC. Retrieved from https://www.cnbc.com/2021/03/18/uber-is-reclassifying-uk-drivers-as-workers-heres-what-happens-next.html

    14. Cheng, M. (2016). Sharing economy: A review and agenda for future research. International Journal of Hospitality Management, 57, 60–70. https://doi.org/https://doi.org/10.1016/j.ijhm.2016.06.003

    15. Cheng, X., Su, L., & Yang, B. (2020). An investigation into sharing economy enabled ridesharing drivers’ trust: A qualitative study. Electronic Commerce Research and Applications, 40(May 2019). https://doi.org/10.1016/j.elerap.2020.100956

    16. Chou, S., & Chen, C. W. (2018). The influences of relational benefits on repurchase intention in service contexts: the roles of gratitude, trust and commitment. Journal of Business and Industrial Marketing, 33(5), 680–692. https://doi.org/10.1108/JBIM-08-2017-0187

    17. Christie, N., & Ward, H. (2019). The health and safety risks for people who drive for work in the gig economy. Journal of Transport and Health, 13(February), 115–127. https://doi.org/10.1016/j.jth.2019.02.007

    18. Clewlow, R. R., & Mishra, G. S. (2017). Disruptive Transportation: The Adoption, Utilization, and Impacts of Ride-Hailing in the United States. In Institute of Transportation Studies (Vol. 44). https://doi.org/10.1139/gen-44-3-401

    19. Dahlan, J. M. (2020, November). Gig economy is here to stay. New Straits Times. Retrieved from https://www.nst.com.my/opinion/columnists/2020/11/638454/gig-economy-here-stay

    20. Dulebohn, J. H., Molloy, J. C., Pichler, S. M., & Murray, B. (2009). Employee benefits: Literature review and emerging issues. Human Resource Management Review, 19(2), 86–103. https://doi.org/10.1016/j.hrmr.2008.10.001

    21. Eckhardt, G. M., Houston, M. B., Jiang, B., Lamberton, C., Rindfleisch, A., & Zervas, G. (2019). Marketing in the Sharing Economy. Journal of Marketing, 83(5), 5–27. https://doi.org/10.1177/0022242919861929

    22. Fatima, J. K., & Mascio, R. Di. (2020). Synchronizing relational benefits with customer commitment profiles. Journal of Strategic Marketing, 28(4), 366–378. https://doi.org/10.1080/0965254X.2019.1619089

    23. Fine, S. H. (1980). Toward a Theory of Segmentation by Objectives in Social Marketing. Journal of Consumer Research, 7(1), 1. https://doi.org/10.1086/208787

    24. Grab. (2018). Grab Merges with Uber in Southeast Asia. Grab News. Retrieved from https://www.grab.com/my/press/business/grab-merges-with-uber-in-sea/

    25. Gwinner, K., Gremler, D., & Bitner, M. (1998). Relational Benefits in Services Industries: The Customer’s Perspective. Journal of The Academy of Marketing Science, 26, 101–114. https://doi.org/10.1177/0092070398262002

    26. He, F., & Shen, Z. J. M. (2015). Modeling taxi services with smartphone-based e-hailing applications. Transportation Research Part C: Emerging Technologies, 58(2015), 93–106. https://doi.org/10.1016/j.trc.2015.06.023

    27. He, F., Wang, X., Lin, X., & Tang, X. (2018). Pricing and penalty compensation strategies of a taxi-hailing platform. Transportation Research Part C, 86(November 2017), 263–279.

    28. Hepola, J., Leppäniemi, M., & Karjaluoto, H. (2020). Is it all about consumer engagement? Explaining continuance intention for utilitarian and hedonic service consumption. Journal of Retailing and Consumer Services, 57, 102232. https://doi.org/https://doi.org/10.1016/j.jretconser.2020.102232

    29. Homans, G. C. (1958). Social Behavior as Exchange. American Journal of Sociology, 63(6), 597–606. Retrieved from http://www.jstor.org/stable/2772990

    30. Ishak, A. (2019, June). Penulis kita menyamar untuk dapatkan lesen e-hailing (PSV). AskLegal.Com. Retrieved from https://asklegal.my/p/ehailing-PSV-kuliah-lesen-APAD-ujian-kos-kesihatan

    31. Izahar, M. M. I. (2018). Regulation E-Hailing in Malaysia is There Over-Regulation. Asia Law Portal, pp. 1–6.

    32. Jais, A. S., & Marzuki, A. (2020). E-hailing services in Malaysia: Current practices and future outlook. Planning Malaysia, 18(3), 128–141. https://doi.org/10.21837/PM.V18I13.780

    33. Jeong, M., & Oh, H. (2017). Business-to-business social exchange relationship beyond trust and commitment. International Journal of Hospitality Management, 65, 115–124. https://doi.org/10.1016/j.ijhm.2017.06.004

    34. Jesu, C.-F., Gao, L.-X., Melero, I., & Sese, F. J. (2019). What drives consumers’ active participation in the online channel? Customer equity, experience quality, and relationship proneness. Electronic Commerce Research and Applications, 35, 100855. https://doi.org/10.1016/j.elerap.2019.100855

    35. Jochen, W., Fung, S. K. K., Amrish, M. M., Q., L. S., & Helen, C. H. (2019). Platforms in the peer-to-peer sharing economy. Journal of Service Management, 30(4), 452–483. https://doi.org/10.1108/JOSM-11-2018-0369

    36. Kanyakumari, D. (2019, October 10). Malaysia’s e-hailing drivers cry foul over new regulations kicking in this weekend. Channel News Asia (CNA). Retrieved from https://www.channelnewsasia.com/news/asia/malaysia-grab-ehailing-regulations-drivers-outcry-11988348

    37. Lahey, S. (2019, January). Customer service in the sharing economy: a delicate balance. The Library. Retrieved from https://www.zendesk.com/blog/customer-service-in-the-sharing-economy/

    38. Levent, A., & Babak, T. (2019). Emerging themes and theories in the sharing economy: a critical note for hospitality and tourism. International Journal of Contemporary Hospitality Management, 31(1), 180–193. https://doi.org/10.1108/IJCHM-02-2018-0171

    39. Mahfuzah, T. (2019). Number of e-hailing drivers to drop. SoyaCincau.Com. Retrieved from https://bm.soyacincau.com/2019/06/17/50-pemandu-e-hailing-berhenti-12-julai-2019/

    40. Mäntymäki, M., Baiyere, A., & Islam, A. K. M. N. (2019). Digital platforms and the changing nature of physical work: Insights from ride-hailing. International Journal of Information Management, 49(April), 452–460. https://doi.org/10.1016/j.ijinfomgt.2019.08.007

    41. Mokthar, N. A. (2019, August 29). JPJ KL kuat kuasa peraturan e-hailing 12 Oktober. Berita Harian Online. Retrieved from https://www.bharian.com.my/berita/wilayah/2019/08/601406/jpj-kl-kuat-kuasa-peraturan-e-hailing-12-oktober

    42. Morgan, R., & Hunt, S. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20–38. https://doi.org/10.2307/1252308

    43. O’Kane, S. (2021). Uber drivers in the UK will now get minimum wage and paid vacation after a big court win. The Verge. https://doi.org/https://www.theverge.com/2021/3/16/22334771/uber-uk-drivers-workers-benefits-employees-decision

    44. Ooi, C. Y., Lim, E. S., & Fernandez, J. (2020). The Sharing Economy : An Analysis of Ride-Hailing Services in Penang. In L. E. Shiang & K. S. Leng (Eds.), Socio-Economic Realities in Society (pp. 93–111). Penerbit Universiti Pendidikan Sultan Idris.

    45. Pansari, A., & Kumar, V. (2017). Customer engagement: the construct, antecedents, and consequences. Journal of the Academy of Marketing Science, 45(3), 294–311. https://doi.org/10.1007/s11747-016-0485-6

    46. Patterson, P., & Smith, T. (2001a). Modeling relationship strength across service types in an Eastern culture. International Journal of Service Industry Management, 12(2), 90–113. https://doi.org/10.1108/09564230110387470

    47. Patterson, P., & Smith, T. (2001b). Relationship benefits in service industries: a replication in a Southeast Asian context. Journal of Services Marketing, 15(6), 425–443. https://doi.org/10.1108/EUM0000000006098

    48. Price, L. L., & Arnould, E. J. (1999). Commercial Friendships: Service Provider-Client Relationships in Context. Journal of Marketing, 63(4), 38. https://doi.org/10.2307/1251973

    49. Rahman, N. I. A., Rahman, R. A., & Mahmud, M. (2021). Who is Helped and Who is Hurts? Rebalance the Reciprocity of the E-hailing Services Industry. 7th Asia Pacific Marketing and Management Conference (APMMC). UNIMAS PUBLISHER.

    50. Research, L. (2019). The World’s Top 4 Ride-Hailing Companies Are Worth More Than $166 Billion “Shared Mobility Poised to Disrupt Multitrillion-Dollar Auto Industry.” Lux Research. Retrieved from https://www.luxresearchinc.com/shared-mobility-executive-summary

    51. Rosenblat, A. (2020). Gig Workers Are Here to Stay. It’s Time to Give Them Benefits. Harvard Business Review. Retrieved from https://hbr.org/2020/07/gig-workers-are-here-to-stay-its-time-to-give-them-benefits

    52. Seigyoung, A. (2005). The effects of soft and hard service attributes on loyalty: the mediating role of trust. Journal of Services Marketing, 19(2), 80–92. https://doi.org/10.1108/08876040510591394

    53. Seunghwan, L., & Dae-Young, K. (2018). The effect of hedonic and utilitarian values on satisfaction and loyalty of Airbnb users. International Journal of Contemporary Hospitality Management, 30(3), 1332–1351. https://doi.org/10.1108/IJCHM-09-2016-0504

    54. Sun, L., Teunter, R. H., Babai, M. Z., & Hua, G. (2019). Optimal pricing for ride-sourcing platforms. European Journal of Operational Research, 278(3), 783–795. https://doi.org/10.1016/j.ejor.2019.04.044

    55. Teoh, P. Y. (2019). Those driving without PSV licence face jail, fine. New Straits Times. Retrieved from https://www.nst.com.my/news/nation/2019/07/503635/those-driving-without-psv-licence-face-jail-fine#:~:text=“Offenders could be fined not,conviction%2C” he said yesterday.

    56. Thakur, R. (2019). The moderating role of customer engagement experiences in customer satisfaction–loyalty relationship. European Journal of Marketing, 53(7), 1278–1310. https://doi.org/10.1108/EJM-11-2017-0895

    57. The Star. (2020, December). Grab upgrades it’s GrabBenefits programme for over 120,000 partners. The Star Online. Retrieved from https://www.thestar.com.my/news/nation/2020/12/08/grab-upgrades-its-grabbenefits-programme-for-over-120000-partners#:~:text=and delivery-partners.-,GrabBenefits is a first-of-its-kind benefits programme,costs of Grab’s driver-partners.

    58. Wang, X., He, F., Yang, H., & Oliver Gao, H. (2016). Pricing strategies for a taxi-hailing platform. Transportation Research Part E: Logistics and Transportation Review, 93, 212–231. https://doi.org/10.1016/j.tre.2016.05.011

    59. Wirtz, J., & Lovelock, C. (2018). Essentials of Services Marketing, (3rd ed.). Pearson Education Limited.

    60. Wu, T., Zhang, M., Tian, X., Wang, S., & Hua, G. (2020). Spatial differentiation and network externality in pricing mechanism of online car hailing platform. International Journal of Production Economics, 219, 275–283. https://doi.org/https://doi.org/10.1016/j.ijpe.2019.05.007

    61. Zhang, W., Honnappa, H., & Ukkusuri, S. V. (2019). Modeling urban taxi services with e-hailings: A queueing network approach. Transportation Research Part C: Emerging Technologies, (November 2018), 1–18. https://doi.org/10.1016/j.trc.2019.05.036

    62. Zuo, W., Zhu, W., Chen, S., & He, X. (2019). Service quality management of online car-hailing based on PCN in the sharing economy. Electronic Commerce Research and Applications, 34, 100827. https://doi.org/https://doi.org/10.1016/j.elerap.2019.100827