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In free float: Developing Business Analytics support for carsharing providers

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  • Wagner, Sebastian
  • Brandt, Tobias
  • Neumann, Dirk

Abstract

As a rapidly expanding market, carsharing presents a possible remedy for traffic congestion in urban centers. Especially free-floating carsharing, which allows customers to leave their car anywhere within the operator׳s business area, provides users with flexibility, and complements public transportation. We present a novel method that provides strategic and operational decision support to companies maneuvering this competitive and constantly changing market environment. Using an extensive set of customer data in a zero-inflated regression model, we explain spatial variation in carsharing activity through the proximity of particular points of interests, such as movie theaters and airports. As an application case, as well as a validation of the model, we use the resulting indicators to predict the number of rentals before an expansion of the business area and compare it to the actual demand post-expansion. We find that our approach correctly identifies areas with a high carsharing activity and can be easily adapted to other cities.

Suggested Citation

  • Wagner, Sebastian & Brandt, Tobias & Neumann, Dirk, 2016. "In free float: Developing Business Analytics support for carsharing providers," Omega, Elsevier, vol. 59(PA), pages 4-14.
    • Handle: RePEc:eee:jomega:v:59:y:2016:i:pa:p:4-14
    DOI: 10.1016/j.omega.2015.02.011
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    References listed on IDEAS

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    Cited by:

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    2. Perboli, Guido & Ferrero, Francesco & Musso, Stefano & Vesco, Andrea, 2018. "Business models and tariff simulation in car-sharing services," Transportation Research Part A: Policy and Practice, Elsevier, vol. 115(C), pages 32-48.
    3. Zhang, Si & Sun, Huijun & Wang, Xu & Lv, Ying & Wu, Jianjun, 2022. "Optimization of personalized price discounting scheme for one-way station-based carsharing systems," European Journal of Operational Research, Elsevier, vol. 303(1), pages 220-238.
    4. Alfred Benedikt Brendel & Sascha Lichtenberg & Stefan Morana & Christoph Prinz & Boris M. Hillmann, 2022. "Designing a Crowd-Based Relocation System—The Case of Car-Sharing," Sustainability, MDPI, vol. 14(12), pages 1-28, June.
    5. Riccardo Ceccato & Marco Diana, 2021. "Substitution and complementarity patterns between traditional transport means and car sharing: a person and trip level analysis," Transportation, Springer, vol. 48(4), pages 1523-1540, August.
    6. Christoph Willing & Tobias Brandt & Dirk Neumann, 2017. "Electronic mobility market platforms – a review of the current state and applications of business analytics," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(3), pages 267-282, August.
    7. Kahlen, M.T. & Ketter, W. & Gupta, A., 2017. "FleetPower: Creating Virtual Power Plants in Sustainable Smart Electricity Markets," ERIM Report Series Research in Management ERS-2017-013-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    8. Ruijing Wu & Shaoxuan Liu & Zhenyang Shi, 2019. "Customer Incentive Rebalancing Plan in Free-Float Bike-Sharing System with Limited Information," Sustainability, MDPI, vol. 11(11), pages 1-24, May.
    9. Oliveira, Beatriz Brito & Carravilla, Maria Antónia & Oliveira, José Fernando, 2018. "Integrating pricing and capacity decisions in car rental: A matheuristic approach," Operations Research Perspectives, Elsevier, vol. 5(C), pages 334-356.

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