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Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications

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  • Wong, R.C.P.
  • Szeto, W.Y.
  • Wong, S.C.

Abstract

This study adopts the sequential logit approach to modeling bi-level decisions of vacant taxi drivers in customer-search. The first level decision is about whether the drivers will travel to one of the nearest taxi stands after dropping off their customers and the second level decision is on whether the drivers will join the queue at the nearest taxi stand once they have arrived there. A stated preference survey was conducted to interview 258 urban taxi drivers about their choices of the two level decisions. The statistical test shows that search districts, travel distance from the customer׳s drop-off location to the designated taxi stand, the congestion level on the way of cruising, as well as the preference for traveling towards taxi stands are found to be the significant factors of the first level decision. This study also confirms that the queue lengths of both taxis and passengers at taxi stands, the expected customer-search distance after leaving taxi stands, and the preference of vacant taxi drivers for staying at taxi stands are found to be significantly influence the second level decision. The likelihood ratio tests for market segmentation analysis demonstrate the variations in preferences of taxi drivers operated in different taxi shifts and service areas. Some policy implications on introducing more taxi stands and improving the utilization rates of taxi stands are also discussed. We believe that the proposed sequential logit modeling approach, findings, and discussions are useful for developing micro-simulation models in terms of evaluating the performance of road traffic networks with taxi services and for developing simulation-based optimization models to answer policy questions related to taxi services.

Suggested Citation

  • Wong, R.C.P. & Szeto, W.Y. & Wong, S.C., 2014. "Bi-level decisions of vacant taxi drivers traveling towards taxi stands in customer-search: Modeling methodology and policy implications," Transport Policy, Elsevier, vol. 33(C), pages 73-81.
    • Handle: RePEc:eee:trapol:v:33:y:2014:i:c:p:73-81
    DOI: 10.1016/j.tranpol.2014.02.011
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    References listed on IDEAS

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    Cited by:

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    5. Long, Jiancheng & Szeto, W.Y. & Du, Jie & Wong, R.C.P., 2017. "A dynamic taxi traffic assignment model: A two-level continuum transportation system approach," Transportation Research Part B: Methodological, Elsevier, vol. 100(C), pages 222-254.
    6. Xiong, Ziyue & Jian Li, & Wu, Hangbin, 2021. "Understanding operation patterns of urban online ride-hailing services: A case study of Xiamen," Transport Policy, Elsevier, vol. 101(C), pages 100-118.
    7. Aleksander Król & Małgorzata Król, 2019. "A Stochastic Simulation Model for the Optimization of the Taxi Management System," Sustainability, MDPI, vol. 11(14), pages 1-22, July.
    8. Wenbo Zhang & Satish V. Ukkusuri & Chao Yang, 2018. "Modeling the Taxi Drivers’ Customer-Searching Behaviors outside Downtown Areas," Sustainability, MDPI, vol. 10(9), pages 1-23, August.
    9. Zhen Wang & Liwei Liu & Yuanfu Shao & Xudong Chai & Baoxian Chang, 2020. "Equilibrium Joining Strategy in a Batch Transfer Queuing System with Gated Policy," Methodology and Computing in Applied Probability, Springer, vol. 22(1), pages 75-99, March.
    10. Wong, R.C.P. & Szeto, W.Y., 2018. "An alternative methodology for evaluating the service quality of urban taxis," Transport Policy, Elsevier, vol. 69(C), pages 132-140.
    11. Shi, Ying & Lian, Zhaotong, 2016. "Optimization and strategic behavior in a passenger–taxi service system," European Journal of Operational Research, Elsevier, vol. 249(3), pages 1024-1032.
    12. Wong, R.C.P. & Szeto, W.Y., 2022. "The effects of peak hour and congested area taxi surcharges on customers’ travel decisions: Empirical evidence and policy implications," Transport Policy, Elsevier, vol. 121(C), pages 78-89.
    13. Faghih-Imani, Ahmadreza & Anowar, Sabreena & Miller, Eric J. & Eluru, Naveen, 2017. "Hail a cab or ride a bike? A travel time comparison of taxi and bicycle-sharing systems in New York City," Transportation Research Part A: Policy and Practice, Elsevier, vol. 101(C), pages 11-21.
    14. Rongxiang Su & Zhixiang Fang & Ningxin Luo & Jingwei Zhu, 2018. "Understanding the Dynamics of the Pick-Up and Drop-Off Locations of Taxicabs in the Context of a Subsidy War among E-Hailing Apps," Sustainability, MDPI, vol. 10(4), pages 1-24, April.
    15. Anil Yazici, M. & Kamga, Camille & Singhal, Abhishek, 2016. "Modeling taxi drivers’ decisions for improving airport ground access: John F. Kennedy airport case," Transportation Research Part A: Policy and Practice, Elsevier, vol. 91(C), pages 48-60.
    16. Yang, Qiaoli & Yang, Bo & Qiao, Zheng & Tang, Min-an & Gao, Fengyang, 2021. "Impact of possible random factors on queue behaviors of passengers and taxis at taxi stand of transport hubs," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 580(C).

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