Influencing Factors on Customer Satisfaction and Retention in Online Transportation in Indonesia Margaretha Pink Berlianto 1 , Rudy Pramono 2 , Yohana F. Cahya Palupi Meilani 3 {margaretha.berlianto@uph.edu 1 , rudy.pramono@uph.edu 2, yohana.meilani@uph.edu 3 } Universitas Pelita Harapan , Jalan MH Thamrin Boulevard 1100 Lippo Karawaci Tangerang 1,2,3 Abstract. This study aims to investigate the effects of sales promotion, online customer service, offline customer service, online dependencies, and corporate reputation on satisfaction and the effect of satisfaction on customer retention on online transportation in Indonesia. The population of this study was individuals who had used online transportation. The sampling technique used was purposive sampling. The data analysis method in this study is using PLS-SEM. The results of this study show that sales promotion, online customer service, offline customer service, and online dependencies have a positive effect on satisfaction and satisfaction have a positive effect on customer retention. This research has succeeded in contributing to the online transportation industry regarding the importance of sales promotion in creating customer sat isfaction, the importance for the manager to manage their online and offline customer service in order to satisfy their customers, how online dependencies can effect customer satisfaction and also how to create the customer retention. Keywords: sales promotion, online dependency, reputation satisfaction, retention. 1 Introduction Southeast Asian ride-hailing active users are 40 million in 2019, which increases five-time from 2015. In Indonesia, itself, the ride-hailing business achieved $6 billion in 2019, highest among other countries in the Southeast Asian region, and predicted to achieve $18 billion in 2025 (34%) [1]. They offer convenience, value, and access to services and products that were previously difficult to obtain. This phenomenon caused intense competition between Indonesian and regional players, such as Gojek Indonesia and Grab Indonesia. To win this intense competition and sustainable, the online transportation service company must have a competitive advantage compared to its competitors. Some source of competitive advantage is customer satisfaction and customer retention [2]. Maintaining customer retention is an essential thing for the company to do, due to its capability to implies a long-term relationship, could maintain a sustainable business, reduce transaction costs, maximize the economic and non-economic benefit, and with 5% improvement in customer retention increased average customer value by 125% and can lead to a 75% increase in profitability [2]. There are two big players of online transportation in Indonesia, namely Gojek and Grab Indonesia. They competing closely each other by offering a variety of services to create a sense of satisfaction with consumers because of customer retention is a critical element of every organization's success, retaining customers become heavy work in a very crowded market environment [3]. Grab, for example, is an online service ride-sharing owned by a Malaysian-based company ICSET 2019, November 23, Jakarta, Indonesia Copyright © 2020 EAI DOI 10.4108/eai.23-11-2019.2301624