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Optimizing Ride-Hailing Supply Scale and Platform Revenue: A Comparative Analysis of Commission Strategies

  • Xiaojun Zhang
  • , Yongwu Liu
  • , Jinqiu Zhao
  • , Le Yu
  • , Binglei Xie*
  • *Corresponding author for this work

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Ride-hailing services, an emerging model in the taxi market, have transformed passenger travel, challenging traditional taxis. However, current commission strategies on online platforms often neglect traditional taxis’ interests, reducing their willingness to accept orders. This paper explores commission strategies for platforms offering both traditional and non-traditional taxi services, aiming to optimize supply and platform revenue. We consider price-sensitive passengers and commission-sensitive drivers, constructing demand and supply functions for different services. We formulated revenue functions for ride-sharing services (comprising both ride-sharing taxis and other ride-sharing options) and traditional taxis (including ride-sharing taxis and other alternatives). We constructed a price competition game model and obtained price equilibrium solutions. By incorporating these price equilibrium solutions into the models mentioned earlier, we derived the supply-demand functions and revenue functions for ride-sharing services, with the commission rates as variables. Numerical experiments reveal that increasing ride-sharing service commissions at specific times decreases supply. Time-based commission strategies further optimize ride-sharing earnings.

Original languageEnglish
Title of host publicationCICTP 2024
Subtitle of host publicationResilient, Intelligent, Connected, and Lowcarbon Multimodal Transportation - Proceedings of the 24th COTA International Conference of Transportation Professionals
EditorsJianming Ma, Qin Luo, Lijun Sun, Baicheng Li, Jingjing Chen, Guohui Zhang
PublisherAmerican Society of Civil Engineers (ASCE)
Pages1466-1476
Number of pages11
ISBN (Electronic)9780784485484
DOIs
StatePublished - 2024
Externally publishedYes
Event24th COTA International Conference of Transportation Professionals: Resilient, Intelligent, Connected, and Lowcarbon Multimodal Transportation, CICTP 2024 - Shenzhen, China
Duration: 23 Jul 202426 Jul 2024

Publication series

NameCICTP 2024: Resilient, Intelligent, Connected, and Lowcarbon Multimodal Transportation - Proceedings of the 24th COTA International Conference of Transportation Professionals

Conference

Conference24th COTA International Conference of Transportation Professionals: Resilient, Intelligent, Connected, and Lowcarbon Multimodal Transportation, CICTP 2024
Country/TerritoryChina
CityShenzhen
Period23/07/2426/07/24

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