The Impact of Dynamic Pricing on Customer Satisfaction and Continuous Usage Behavior in Ride-Hailing Application

The widespread adoption of dynamic pricing strategies by Transportation Network Companies (TNCs) in the Jabodetabek region, Indonesia, raises concerns about its effects on users’ continuous usage behavior and satisfaction. A prior survey reported that 85% of Uber users expressed dissatisfaction with trip cancellations and excessive dynamic pricing.  Although dynamic pricing is widely implemented, previous studies often focus on technical aspects and overlook its behavioral impact, particularly on customer satisfaction and continuous usage in ride-hailing applications. This study aims to fill the gap by examining the influence of dynamic pricing, price fairness, price sensitivity, and privacy concerns on the continuous usage behavior of ride-hailing app users. The mediating roles of perceived value and customer satisfaction were also investigated to understand underlying continuous usage behavior. Employing a quantitative approach with Structural Equation Modeling (SEM), primary data were collected online from 447 individuals who actively use or have previously used ride-hailing applications across Jabodetabek between April and May 2025 using non-probability sampling. Data analysis via SmartPLS 4 tested eleven hypotheses, with eight showing significant effects. These findings suggest that for users in Jabodetabek, continuous usage with TNCs under dynamic pricing is more centrally driven by their perceptions of fairness and the overall value received rather than by privacy concerns or price sensitivity. Therefore, for TNCs operating in this market, the key to fostering continuous usage of ride-hailing apps is to consistently enhance perceived value, maintain fair pricing, and ensure high customer satisfaction.

Keywords—Dynamic Pricing, Ride-Hailing, Customer Satisfaction, Continuous Usage Behavior, Price Fairness