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A dynamic pricing scheme with negative prices in dockless bike sharing systems

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  • Zhang, J.
  • Meng, M.
  • Wang, David, Z.W.

Abstract

To achieve bike relocation11The bike relocation mentioned in this paper is also referred as bike repositioning in the literature. through travellers’ spontaneous behaviour in dockless bike sharing systems, an innovative dynamic pricing scheme with negative prices is introduced. In normal situation, users pay a positive price to operators for using a bike. However, when imbalanced distribution of bikes occurs in the system, users who cycle from the oversupplied area to undersupplied area will receive monetary reward from the operator, i.e., negative pricing applies. A user equilibrium dynamic traffic assignment model is developed to capture travellers’ mode-path choice behaviour in response to the proposed dynamic pricing strategy. Travellers can either use a single transportation mode (e.g. walking, cycling and bus) or take multiple modes to complete their trips. The user equilibrium travel pattern is formulated as a variational inequality problem and then solved by a path-flow swapping algorithm. Two numerical examples are conducted to demonstrate that the proposed dynamic pricing strategy with negative prices is effective in terms of attracting users as well as achieving a more balanced bike repositioning, especially when the number of bikes provided in the system is limited.

Suggested Citation

  • Zhang, J. & Meng, M. & Wang, David, Z.W., 2019. "A dynamic pricing scheme with negative prices in dockless bike sharing systems," Transportation Research Part B: Methodological, Elsevier, vol. 127(C), pages 201-224.
    • Handle: RePEc:eee:transb:v:127:y:2019:i:c:p:201-224
    DOI: 10.1016/j.trb.2019.07.007
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    5. Li, Chunzhi & Xiao, Wei & Zhang, Dayong & Ji, Qiang, 2021. "Low-carbon transformation of cities: Understanding the demand for dockless bike sharing in China," Energy Policy, Elsevier, vol. 159(C).
    6. Zhang, Yuhan & Shao, Yichang & Bi, Hui & Aoyong, Li & Ye, Zhirui, 2023. "Bike-sharing systems rebalancing considering redistribution proportions: A user-based repositioning approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 610(C).
    7. Zakharenko, Roman, 2023. "Pricing shared vehicles," Economics of Transportation, Elsevier, vol. 33(C).
    8. Zhang, Jie & Meng, Meng & Wong, Yiik Diew & Ieromonachou, Petros & Wang, David Z.W., 2021. "A data-driven dynamic repositioning model in bicycle-sharing systems," International Journal of Production Economics, Elsevier, vol. 231(C).
    9. Fan, Jing-Li & Wang, Jia-Xing & Zhang, Xian, 2020. "An innovative subsidy model for promoting the sharing of Electric Vehicles in China: A pricing decisions analysis," Energy, Elsevier, vol. 201(C).
    10. Cheng, Yao & Wang, Junwei & Wang, Yan, 2021. "A user-based bike rebalancing strategy for free-floating bike sharing systems: A bidding model," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    11. Jun Tu & Juan Du & Min Huang, 2023. "Competition between Green and Non-Green Travel Companies: The Role of Governmental Subsidies in Green Travel," Sustainability, MDPI, vol. 15(9), pages 1-33, May.
    12. Liu, Yixiao & Tian, Zihao & Pan, Baoran & Zhang, Wenbin & Liu, Yunqi & Tian, Lixin, 2022. "A hybrid big-data-based and tolerance-based method to estimate environmental benefits of electric bike sharing," Applied Energy, Elsevier, vol. 315(C).
    13. 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.
    14. Dongdong Feng & Lin Cheng & Mingyang Du, 2020. "Exploring the Impact of Dockless Bikeshare on Docked Bikeshare—A Case Study in London," Sustainability, MDPI, vol. 12(15), pages 1-18, July.
    15. Gu, Wei & Yu, Xiaoru & Zhang, Shichen & Yan, Xiangbin & Wang, Chen, 2023. "To outsource or not: Bike-share rebalancing strategies under the service quality deviation of a third party," European Journal of Operational Research, Elsevier, vol. 310(2), pages 847-859.
    16. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    17. Zijia Wang & Lei Cheng & Yongxing Li & Zhiqiang Li, 2020. "Spatiotemporal Characteristics of Bike-Sharing Usage around Rail Transit Stations: Evidence from Beijing, China," Sustainability, MDPI, vol. 12(4), pages 1-19, February.

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