Antitrust & Competition Policy Blog

Editor: D. Daniel Sokol
University of Florida
Levin College of Law

Tuesday, June 25, 2019

Ridesourcing Systems: A Framework and Review

Hai Wang, Singapore Management University - School of Information Systems and Hai Yang, Hong Kong University of Science & Technology (HKUST) - Department of Civil Engineering address Ridesourcing Systems: A Framework and Review.

Abstract: With the rapid development and popularization of mobile and wireless communication technologies, ridesourcing companies have been able to leverage an internet-based platform to operate e-hailing services that connect passengers and drivers in real time and are disruptively changing the transportation industry. As pioneers in a general sharing economy context, these shared transportation platforms consist of a typical two-sided market. On the demand side, passengers are sensitive to the prices and quality of the service. On the supply side, drivers, as freelancers, flexibly make their working decisions based on their income from the platform and many other factors. Diverse variables and factors in the system are strongly endogenous and interactively dependent. How to design and operate ridesourcing platforms is vital — and challenging — for all stakeholders: passengers/users, drivers/service providers, platforms, policy makers, and the general public. In this paper, we propose a general framework to describe the ridesourcing systems. The framework can help understand the interactions of endogenous and exogenous variables, their changes in response to system decisions, platform operating strategies and objectives, and the market equilibria in a dynamic manner. Under the proposed general framework, we summarize important research problems and the corresponding methodologies that have been and are being developed and implemented to address these problems. We conduct a comprehensive review of the literature on these problems in different areas from diverse perspectives, including (1) demand and pricing, (2) supply and incentives, (3) platform operations, and (4) competition, impacts, and regulations. The proposed framework and the review also suggest many avenues worth exploring in future research.

https://lawprofessors.typepad.com/antitrustprof_blog/2019/06/ridesourcing-systems-a-framework-and-review.html

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