Pricing strategy for a ridesourcing service under travel time variability

G Jiang, HK Lo - Transportation Systems in the Connected Era …, 2018 - repository.ust.hk
Transportation Systems in the Connected Era-Proceedings of the 23rd …, 2018repository.ust.hk
The emergence of transportation network companies (TNC) has attracted increasing
attention. As new travel alternatives, they may have large impact on peoples' travel
behaviour. Due to they are under relatively fewer regulations and offer differentiated
services with competitive prices as compared with taxi, they have been gaining market
share. In this study, a new service is proposed, which aims at travellers facing commuting
mode choices from home to work considering two travel modes: taking the subway versus …
The emergence of transportation network companies (TNC) has attracted increasing attention. As new travel alternatives, they may have large impact on peoples' travel behaviour. Due to they are under relatively fewer regulations and offer differentiated services with competitive prices as compared with taxi, they have been gaining market share. In this study, a new service is proposed, which aims at travellers facing commuting mode choices from home to work considering two travel modes: taking the subway versus taking the ridesourcing services provided by TNCs. Travellers consider comfort, travel time, travel time variability and monetary cost when making choices. Two pricing strategies for the ridesourcing service are proposed to investigate which would help them maximize their revenue under travel time variability. It turns out that the optimal strategy is affected by the travellers' monetary disutility function. © 2018 Transportation Systems in the Connected Era - Proceedings of the 23rd International Conference of Hong Kong Society for Transportation Studies, HKSTS 2018. All rights reserved.
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