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Strategic sourcing selection for bike-sharing rebalancing: An evolutionary game approach

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  • Gu, Wei
  • Li, Meng
  • Wang, Chen
  • Shang, Jennifer
  • Wei, Lirong

Abstract

Bike-sharing systems (BSSs) offer convenient transportation services with environmental and social benefits. However, they also bring operational complexity, with rebalancing bikes being a very challenging one. The importance and difficulty of building the reverse logistics for BSSs are evident from the data obtained from Mobike, one of the largest dockless bike-sharing platforms in China. This paper proposes an evolutionary game theoretic approach to identify the best bike-sharing sourcing strategies, including self-operation, joint venture, and outsourcing. We show that the self-operation mode is an evolutionary stable strategy to rebalance Mobike. However, if bike-sharing firms cannot achieve economies of scale and significantly reduce the variable costs of the self-operation mode, the outsourcing mode will become the optimal choice. From a long-term perspective, the joint venture mode is never an attractive strategy for the bike-sharing firms under study. Our model can select the optimal sourcing strategy to rebalance bikes in BSS to maximize profit when competition and cooperation are jointly considered.

Suggested Citation

  • Gu, Wei & Li, Meng & Wang, Chen & Shang, Jennifer & Wei, Lirong, 2021. "Strategic sourcing selection for bike-sharing rebalancing: An evolutionary game approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:transe:v:156:y:2021:i:c:s1366554521002829
    DOI: 10.1016/j.tre.2021.102522
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    2. Dong, Zhongpeng & Fan, Zhi-Ping & Wang, Ningning, 2023. "An analysis of pricing strategy for bike-sharing services: The role of the inconvenience cost," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 175(C).

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