How Do Passengers with Different Using Frequencies Choose between Traditional Taxi Service and Online Car-Hailing Service? A Case Study of Nanjing, China

Ting Wang, Yong Zhang, Meiye Li and Lei Liu
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Ting Wang: School of Transportation, Southeast University, Nanjing 211189, China
Yong Zhang: School of Transportation, Southeast University, Nanjing 211189, China
Meiye Li: School of Transportation, Southeast University, Nanjing 211189, China
Lei Liu: School of Transportation, Southeast University, Nanjing 211189, China

Sustainability, 2019, vol. 11, issue 23, 1-18

Abstract: The rapid development of online car-hailing services (OCSs) has a huge impact on traditional taxi service (TTS) and is triggering a revolution in the taxi industry. Due to the differences in age, monthly income level, etc., travelers’ using frequencies of taxi service are different. It is necessary for online car-hailing platforms and traditional taxi companies to know the choice behavior of different types of passengers to enhance competitiveness. Based on the survey data of taxi passengers in Nanjing, China, the passengers are characterized by using frequency per week as infrequent passengers, moderately frequent passengers, and frequent passengers. The group characteristics and the differences among groups are analyzed. Further, three binary logit models are applied to analyze the taxi service choice behavior of different groups. The model results show the significant factors vary among three types of passengers. The result indicates that the impacts of safety level improvement, comfort level improvement and travel cost reduction for OCS on passengers’ choice behavior are higher than that of safety level decreasing, comfort level decreasing, and travel cost increasing. Moderately frequent passengers are more sensitive to comfort level than travel cost. The conclusions contribute to both the OCS and TTS business strategies. The results also provide insights into taxi industry management for governments.

Keywords: taxi service; using frequency; choice behavior; binary logit model (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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