Equilibrium in taxi and ride-sourcing service considering the use of e-hailing application

Abstract

With the advent of e-hailing applications, ride-sourcing service has become popular and replaced a substantial portion of taxi services. It is crucial to study the impact of different management strategies and regulation policies on taxi and ride-sourcing market performance. We build a taxi network service model involving taxi and ride-sourcing service to study the effect of pricing strategies, fleet size regulation, and customer-driver meeting ways on the equilibrium and the market performance. We prove that there is a solution for the network model and propose a solution algorithm based on the fixed-point iteration method. Numerical experiments are performed to analyze the market performance of taxi and ride-sourcing services under different fleet sizes and pricing strategies. This study provides valuable references for designing policies and measures to regulate taxi and ride-sourcing.

KEYWORDS:

• Market performance
• fixed point method
• ride-sourcing
• taxi service network model

Acknowledgements

This study was funded by the National Natural Science Foundation of China (Grant number 71704145, 51774241 and 72025104), National Key Research and Development Program of China (Grant number 2018YFB1600902), Sichuan Youth Science and Technology Innovation Research Team Project (Grant number 2019JDTD0002 and 2020JDTD0027), Humanity and Social Science Foundation of Ministry of Education of China (Grant number 18YJCZH138), and China Postdoctoral Science Foundation.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This study was funded by the National Key Research and Development Program of China (2018YFB1600902), National Natural Science Foundation of China (Grant number 71704145, 51774241 and 72025104), Sichuan Youth Science and Technology Innovation Research Team Project (Grant number 2019JDTD0002 and 2020JDTD0027), Humanity and Social Science Foundation of Ministry of Education of China (grant number 18YJCZH138), and China Postdoctoral Science Foundation.