The Effect Of Sharing Economy Business Model On Customer Value In Nairobi: A Case Of Uber

ABSTRACT

The customer value represents the satisfaction that customers achieve from the purchase of services. The current study sought to determine the effects of sharing economy business model on customer value in Nairobi, with special reference to Uber. Specific objectives were; to investigate the effect of collaborative lifestyle on customer value in Nairobi, to establish the effect of marketplace automated platform on customer value in Nairobi, to assess the effect of access-based platform on customer value in Nairobi and to assess the effect of on demand service platform on customer value in Nairobi. The study was based on social cognitive theory and self-determination theory and it employed a descriptive research design targeting active Uber users in Nairobi. According to a report released by Uber Kenya in 2017, they had 363,000 Uber active users. Based on this population, the researcher used simple random sampling to select a sample out of the 400 active Uber users. The study used questionnaires to collect primary data with the help of research assistants. Quantitative data was analyzed using descriptive statistics means, standard deviation, frequencies and percentages while content analysis was used in analysis of qualitative data. The study found that collaborative lifestyle, marketplace automated platform, access-based platform and on-demand service provider significantly influence customer value. The study concluded that collaborative lifestyle is positively related to customer value while marketplace automated platform improves customer value in Uber services. Access based platform affects customer value in Nairobi Uber services and on-demand service provider is positively related to customer value of Uber services. The study recommends that the association of Uber in Nairobi should encourage collaborative lifestyle in their operations as well as make the available marketplace automated platform more user friendly. While conventional businesses could not serve multiple customer’s needs, Uber can make effective use of a single platform to serve multiple customer needs, thus creating a unique personalized experience. On-demand service should also be improved since it promotes instant provision of services. Uber can continue to improve the turnaround times to increase customer value.