Competition and third-party platform-integration in ride-sourcing markets
Recently, some third-party integrators attempt to integrate the ride services offered by multiple independent ride-sourcing platforms. Accordingly, passengers can request ride through the integrators and receive ride service from any one of the ride-sourcing platforms. This novel business model, termed as third-party platform-integration in this work, has potentials to alleviate market fragmentation cost resulting from demand splitting among multiple platforms. Although most existing studies focus on operation strategies for one single monopolist platform, much less is known about the competition and platform-integration and their implications on operation strategy and system efficiency. In this work, the authors propose mathematical models to describe the ride-sourcing market with multiple competing platforms and compare system performance measures between two market scenarios (i.e., with and without platform-integration) at Nash equilibrium and social optimum. The authors find that platform-integration can increase the total realized demand and social welfare at Nash equilibrium and social optimum, but may not necessarily generate a greater profit when the vehicle supply is sufficiently large, and/or the market is considerably fragmented. The authors show that the market with platform-integration generally achieves greater social welfare due to two reasons. First, platform-integration can generate a thicker market and reduce matching frictions; second, multiple ride-sourcing platforms are competing for passengers by setting lower trip fares independently.
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Availability:
- Find a library where document is available. Order URL: http://worldcat.org/issn/01912615
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Supplemental Notes:
- © 2021 Published by Elsevier Ltd. Abstract reprinted with permission of Elsevier.
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Authors:
- Zhou, Yaqian
- Yang, Hai
- Ke, Jintao
- Wang, Hai
- Li, Xinwei
- Publication Date: 2022-5
Language
- English
Media Info
- Media Type: Web
- Features: Appendices; Figures; References; Tables;
- Pagination: pp 76-103
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Serial:
- Transportation Research Part B: Methodological
- Volume: 159
- Issue Number: 0
- Publisher: Elsevier
- ISSN: 0191-2615
- Serial URL: http://www.sciencedirect.com/science/journal/01912615
Subject/Index Terms
- TRT Terms: Competition; Markets; Mathematical models; Ridesourcing
- Subject Areas: Administration and Management; Operations and Traffic Management; Public Transportation;
Filing Info
- Accession Number: 01831046
- Record Type: Publication
- Files: TRIS
- Created Date: Dec 21 2021 9:51AM