The Elasticity of Convenience: An Empirical Investigation into Ride-Hailing Services and Transport Budget Allocation among Gen Z in Kathmandu.

This study examines the impact of ride-hailing service convenience on transport spending behavior among Generation Z in Kathmandu Valley using a mixed-method research design. Data collection was done from 54 respondents using a structured online questionnaire, along with an open-ended question to get insights into the subjective experience and perception of the respondents. Data analysis used were Descriptive Statistics, Pearson Correlation, Simple Linear Regression and Thematic Analysis. The results suggest that the respondents particularly valued easy access to the vehicle during emergencies and to save travel time and effort. The relationship between convenience of the ride-hailing service and spontaneous transport spending was moderately positive (r = .536, p < .001); and the regression analysis showed that convenience was a significant predictor of spontaneous spending (β = .493, p < .001, R² = .287). Additionally, financial impact results show that 51.8% agreed or strongly agreed that their transport expenses had increased as a result of ride-hailing, and 46.3% said that ride-hailing is a significant portion of their monthly transport budget. Qualitative responses further report that while ride-hailing services are widely valued for their convenience, yet users remain price sensitive as they are mostly students; so, to cope up with the limited budget, most of them seem to be making a selective usage of ride-hailing for specific purposes when cost or necessity is a concern. The study finds that the convenience of ride-hailing is correlated with increased spontaneous transportation expenditures for Generation Z, and the economic effect of ride-hailing differs by user based on need, availability and frequency of use. The study recommends improving driver availability, reducing ride-acceptance delays, ensuring clearer fare disclosure, strengthening safety measures, and enhancing coordination between ride-hailing operators and relevant authorities.