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Equilibrium analyses and operational designs of a coupled market with substitutive and complementary ride-sourcing services to public transits

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  • Ke, Jintao
  • Zhu, Zheng
  • Yang, Hai
  • He, Qiaochu

Abstract

The emerging on-demand ride-sourcing programs provided by transportation network companies (TNCs) have been reshaping the transportation industry. Research efforts in this area have covered topics such as supply-demand equilibrium, pricing, matching, dispatching, but have not fully spread to the potential impacts of ride-sourcing on public transit in multi-modal transportation systems. On the one hand, ride-sourcing services act as convenient feeders to solve first-mile/last-mile problems for public transit riders. On the other hand, direct origin-to-destination ride-sourcing services may also absorb passengers from public transit. In this paper, we propose a user equilibrium based mathematical model to analyze complement and substitution of ride-sourcing to public transit. Through both analytical and numerical discussions, we find that the fleet size of ride-sourcing vehicles can critically affect the complementary and substitutive relationship between ride-sourcing and public transit, and ride-sourcing service fares affect the market share between first-mile/last-mile (i.e., from origin to the transportation hub or from the hub to destination) and direct (i.e., from origin to destination) ride-sourcing services. We also examine the optimal strategies to maximize the TNC’s profit and/or social welfare and find that the TNC can implement a Pareto-efficient strategy that makes both the two objectives better off.

Suggested Citation

  • Ke, Jintao & Zhu, Zheng & Yang, Hai & He, Qiaochu, 2021. "Equilibrium analyses and operational designs of a coupled market with substitutive and complementary ride-sourcing services to public transits," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 148(C).
    • Handle: RePEc:eee:transe:v:148:y:2021:i:c:s1366554521000144
    DOI: 10.1016/j.tre.2021.102236
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    References listed on IDEAS

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    4. Zhang, Zhaolin & Zhai, Guocong & Xie, Kun & Xiao, Feng, 2022. "Exploring the nonlinear effects of ridesharing on public transit usage: A case study of San Diego," Journal of Transport Geography, Elsevier, vol. 104(C).
    5. Zhao, Meng & Li, Bin & Ren, Jiali & Hao, Zhihua, 2023. "Competition equilibrium of ride-sourcing platforms and optimal government subsidies considering customers’ green preference under peak carbon dioxide emissions," International Journal of Production Economics, Elsevier, vol. 255(C).
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    7. Li, Xiaonan & Li, Xiangyong & Wang, Hai & Shi, Junxin & Aneja, Y.P., 2022. "Supply regulation under the exclusion policy in a ride-sourcing market," Transportation Research Part B: Methodological, Elsevier, vol. 166(C), pages 69-94.

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