Modeling a ride-sourcing market with a third-party platform integrator under batch matching mechanisms

Ce Wang and Jintao Ke

Transportation Research Part E: Logistics and Transportation Review, 2024, vol. 192, issue C

Abstract: This paper develops a mathematical model to characterize a generalized ride-sourcing market with a third-party integrator and multiple competitive ride-sourcing platforms. Different from earlier works which normally assume instant matching strategies, our model can characterize the integrator’s and platforms’ decisions on choosing flexible matching strategies under batch matching mechanisms and their influences on the market equilibrium. Through theoretical analytics and numerical studies, this study reveals that the introduction of a third-party platform integrator is not always beneficial but may be detrimental to the system in certain situations. For example, an inefficient matching strategy chosen by the integrator may lead to a lose-lose situation where both the customers hailing rides through the integrator or the individual platforms experience longer waiting times. In addition, we show that a ride-sourcing platform with a high market share may refuse to join the integrator since the efficiency gains brought by the integrator do not outweigh the losses caused by its losing market share. The managerial insights obtained from this work can assist both the integrator and individual ride-sourcing platforms in developing more efficient operational strategies in terms of pricing and matching strategies.

Keywords: Ride-sourcing service; Platform integrator; Batch matching; Shared mobility (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1366554524003946
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:transe:v:192:y:2024:i:c:s1366554524003946

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/bibliographic
http://www.elsevier. ... 600244/bibliographic

DOI: 10.1016/j.tre.2024.103803

Access Statistics for this article

Transportation Research Part E: Logistics and Transportation Review is currently edited by W. Talley

More articles in Transportation Research Part E: Logistics and Transportation Review from Elsevier
Bibliographic data for series maintained by Catherine Liu ().