IDEAS home Printed from https://ideas.repec.org/a/eee/transe/v169y2023ics1366554522003428.html
   My bibliography  Save this article

Integrating ride-sourcing with electric vehicle charging under mixed fleets and differentiated services

Author

Listed:
  • Cai, Zeen
  • Mo, Dong
  • Geng, Maosi
  • Tang, Wei
  • Chen, Xiqun Michael

Abstract

This paper proposes a novel nested two-sided market framework to investigate integrated ride-sourcing (RS) and electric vehicle (EV) charging services considering mixed electric and gasoline vehicles (GVs). In the proposed integrated scheme, a monopoly RS platform builds or purchases charging piles to provide RS and private EV drivers with additional differentiated services (i.e., different charging prices and priority) besides public charging piles. Both RS and private drivers with different charging pile ownership are considered. The complex endogenous correlations between RS and charging services are formulated. The mathematical properties of drivers' charging behavior, passengers' mode choices, and platform's operation strategies are analytically derived, which is closely related to the differentiated priority of drivers. The conditions for judging the profitability of the RS and charging business under profit maximization strategies are obtained. We examine and compare the potential impact of introducing integrated services with two strategies and identify the sufficient conditions to boost total profit by providing the integrated services. It is rigorously proved that the integrated services benefit passengers and specific driver groups, while it may be harmful to the environment under a high RS electrification level. The Pareto-efficient frontiers indicate that the charging price for RS drivers in the social optimum regime is higher than that in the profit maximization regime. The analytical results gain managerial insights into platform operations and government regulation of integrated RS and charging services in the RS market under mixed fleets of EVs and GVs.

Suggested Citation

  • Cai, Zeen & Mo, Dong & Geng, Maosi & Tang, Wei & Chen, Xiqun Michael, 2023. "Integrating ride-sourcing with electric vehicle charging under mixed fleets and differentiated services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 169(C).
    • Handle: RePEc:eee:transe:v:169:y:2023:i:c:s1366554522003428
    DOI: 10.1016/j.tre.2022.102965
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1366554522003428
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tre.2022.102965?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Gérard P. Cachon & Kaitlin M. Daniels & Ruben Lobel, 2017. "The Role of Surge Pricing on a Service Platform with Self-Scheduling Capacity," Manufacturing & Service Operations Management, INFORMS, vol. 19(3), pages 368-384, July.
    2. Hai Yang & Min Ye & Wilson Hon-Chung Tang & Sze Chun Wong, 2005. "A Multiperiod Dynamic Model of Taxi Services with Endogenous Service Intensity," Operations Research, INFORMS, vol. 53(3), pages 501-515, June.
    3. Shao, Lulu & Yang, Jun & Zhang, Min, 2017. "Subsidy scheme or price discount scheme? Mass adoption of electric vehicles under different market structures," European Journal of Operational Research, Elsevier, vol. 262(3), pages 1181-1195.
    4. Jiaru Bai & Kut C. So & Christopher S. Tang & Xiqun (Michael) Chen & Hai Wang, 2019. "Coordinating Supply and Demand on an On-Demand Service Platform with Impatient Customers," Manufacturing & Service Operations Management, INFORMS, vol. 21(3), pages 556-570, July.
    5. Belleflamme, Paul & Peitz, Martin, 2019. "Platform competition: Who benefits from multihoming?," International Journal of Industrial Organization, Elsevier, vol. 64(C), pages 1-26.
    6. Yang, Hai & Yang, Teng, 2011. "Equilibrium properties of taxi markets with search frictions," Transportation Research Part B: Methodological, Elsevier, vol. 45(4), pages 696-713, May.
    7. Raeesi, Ramin & Zografos, Konstantinos G., 2020. "The electric vehicle routing problem with time windows and synchronised mobile battery swapping," Transportation Research Part B: Methodological, Elsevier, vol. 140(C), pages 101-129.
    8. Guidon, Sergio & Wicki, Michael & Bernauer, Thomas & Axhausen, Kay, 2020. "Transportation service bundling – For whose benefit? Consumer valuation of pure bundling in the passenger transportation market," Transportation Research Part A: Policy and Practice, Elsevier, vol. 131(C), pages 91-106.
    9. Li, Baicheng & Szeto, W.Y. & Zou, Liang, 2022. "Optimal fare and fleet size regulation in a taxi/ride-sourcing market with congestion effects, emission externalities, and gasoline/electric vehicles," Transportation Research Part A: Policy and Practice, Elsevier, vol. 157(C), pages 215-243.
    10. Cen, Xuekai & Lo, Hong K. & Li, Lu & Lee, Enoch, 2018. "Modeling electric vehicles adoption for urban commute trips," Transportation Research Part B: Methodological, Elsevier, vol. 117(PA), pages 431-454.
    11. Quddus, Md Abdul & Kabli, Mohannad & Marufuzzaman, Mohammad, 2019. "Modeling electric vehicle charging station expansion with an integration of renewable energy and Vehicle-to-Grid sources," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 251-279.
    12. Lu, Chung-Cheng & Diabat, Ali & Li, Yi-Ting & Yang, Yu-Min, 2022. "Combined passenger and parcel transportation using a mixed fleet of electric and gasoline vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    13. Yang, Hai & Qin, Xiaoran & Ke, Jintao & Ye, Jieping, 2020. "Optimizing matching time interval and matching radius in on-demand ride-sourcing markets," Transportation Research Part B: Methodological, Elsevier, vol. 131(C), pages 84-105.
    14. Ke, Jintao & Li, Xinwei & Yang, Hai & Yin, Yafeng, 2021. "Pareto-efficient solutions and regulations of congested ride-sourcing markets with heterogeneous demand and supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    15. Mo, Dong & Yu, Jingru & Chen, Xiqun Michael, 2020. "Modeling and managing heterogeneous ride-sourcing platforms with government subsidies on electric vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 447-472.
    16. Liu, Haoxiang & Zou, Yuncheng & Chen, Ya & Long, Jiancheng, 2021. "Optimal locations and electricity prices for dynamic wireless charging links of electric vehicles for sustainable transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    17. Maxime C. Cohen & Renyu Zhang, 2022. "Competition and coopetition for two‐sided platforms," Production and Operations Management, Production and Operations Management Society, vol. 31(5), pages 1997-2014, May.
    18. Zhan, Xingbin & Szeto, W.Y. & (Michael) Chen, Xiqun, 2022. "A simulation–optimization framework for a dynamic electric ride-hailing sharing problem with a novel charging strategy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 159(C).
    19. McConnell K. E., 1995. "Consumer Surplus from Discrete Choice Models," Journal of Environmental Economics and Management, Elsevier, vol. 29(3), pages 263-270, November.
    20. Jiayi Joey Yu & Christopher S. Tang & Zuo-Jun Max Shen & Xiqun Michael Chen, 2020. "A Balancing Act of Regulating On-Demand Ride Services," Management Science, INFORMS, vol. 66(7), pages 2975-2992, July.
    21. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
    22. Thijs Dekker & Caspar G. Chorus, 2018. "Consumer surplus for random regret minimisation models," Journal of Environmental Economics and Policy, Taylor & Francis Journals, vol. 7(3), pages 269-286, July.
    23. Cortés-Murcia, David L. & Prodhon, Caroline & Murat Afsar, H., 2019. "The electric vehicle routing problem with time windows, partial recharges and satellite customers," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 130(C), pages 184-206.
    24. Timothy M. Sweda & Irina S. Dolinskaya & Diego Klabjan, 2017. "Optimal Recharging Policies for Electric Vehicles," Transportation Science, INFORMS, vol. 51(2), pages 457-479, May.
    25. Ke, Jintao & Cen, Xuekai & Yang, Hai & Chen, Xiqun & Ye, Jieping, 2019. "Modelling drivers’ working and recharging schedules in a ride-sourcing market with electric vehicles and gasoline vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 160-180.
    26. Harding, Simon & Kandlikar, Milind & Gulati, Sumeet, 2016. "Taxi apps, regulation, and the market for taxi journeys," Transportation Research Part A: Policy and Practice, Elsevier, vol. 88(C), pages 15-25.
    27. Lin, Xiaogang & Sun, Cuiying & Cao, Bin & Zhou, Yong-Wu & Chen, Chuanying, 2021. "Should ride-sharing platforms cooperate with car-rental companies? Implications for consumer surplus and driver surplus," Omega, Elsevier, vol. 102(C).
    28. Kevin K. Wang & Michael D. Wittman & Adam Bockelie, 2021. "Dynamic offer generation in airline revenue management," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 20(6), pages 654-668, December.
    29. (Jeff) Ban, Xuegang & Dessouky, Maged & Pang, Jong-Shi & Fan, Rong, 2019. "A general equilibrium model for transportation systems with e-hailing services and flow congestion," Transportation Research Part B: Methodological, Elsevier, vol. 129(C), pages 273-304.
    30. Melinda Matyas & Maria Kamargianni, 2019. "The potential of mobility as a service bundles as a mobility management tool," Transportation, Springer, vol. 46(5), pages 1951-1968, October.
    31. Li, Baicheng & Szeto, W.Y., 2021. "Modeling and analyzing a taxi market with a monopsony taxi owner and multiple rentee-drivers," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 1-22.
    32. Zha, Liteng & Yin, Yafeng & Du, Yuchuan, 2018. "Surge pricing and labor supply in the ride-sourcing market," Transportation Research Part B: Methodological, Elsevier, vol. 117(PB), pages 708-722.
    33. Jian, Sisi & Liu, Wei & Wang, Xiaolei & Yang, Hai & Waller, S. Travis, 2020. "On integrating carsharing and parking sharing services," Transportation Research Part B: Methodological, Elsevier, vol. 142(C), pages 19-44.
    34. Arthur M. Geoffrion, 1967. "Solving Bicriterion Mathematical Programs," Operations Research, INFORMS, vol. 15(1), pages 39-54, February.
    35. Chenhao Du & William L. Cooper & Zizhuo Wang, 2016. "Optimal Pricing for a Multinomial Logit Choice Model with Network Effects," Operations Research, INFORMS, vol. 64(2), pages 441-455, April.
    36. Panou, Konstantinos & Kapros, Seraphim & Polydoropoulou, Amalia, 2015. "How service bundling can increase the competitiveness of low market share transportation services," Research in Transportation Economics, Elsevier, vol. 49(C), pages 22-35.
    37. Xu, Min & Meng, Qiang & Liu, Kai, 2017. "Network user equilibrium problems for the mixed battery electric vehicles and gasoline vehicles subject to battery swapping stations and road grade constraints," Transportation Research Part B: Methodological, Elsevier, vol. 99(C), pages 138-166.
    38. Kumar, Rajeev Ranjan & Chakraborty, Abhishek & Mandal, Prasenjit, 2021. "Promoting electric vehicle adoption: Who should invest in charging infrastructure?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 149(C).
    39. Georg Brandstätter & Markus Leitner & Ivana Ljubić, 2020. "Location of Charging Stations in Electric Car Sharing Systems," Transportation Science, INFORMS, vol. 54(5), pages 1408-1438, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lai, Zhijie & Li, Sen, 2024. "Towards a multimodal charging network: Joint planning of charging stations and battery swapping stations for electrified ride-hailing fleets," Transportation Research Part B: Methodological, Elsevier, vol. 183(C).
    2. Cai, Zeen & Li, Chuanjia & Mo, Dong & Xu, Shuyang & Chen, Xiqun (Michael) & Lee, Der-Horng, 2024. "Optimizing consolidated shared charging and electric ride-sourcing services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ke, Jintao & Li, Xinwei & Yang, Hai & Yin, Yafeng, 2021. "Pareto-efficient solutions and regulations of congested ride-sourcing markets with heterogeneous demand and supply," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 154(C).
    2. Ke, Jintao & Chen, Xiqun (Michael) & Yang, Hai & Li, Sen, 2022. "Coordinating supply and demand in ride-sourcing markets with pre-assigned pooling service and traffic congestion externality," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    3. Cai, Zeen & Li, Chuanjia & Mo, Dong & Xu, Shuyang & Chen, Xiqun (Michael) & Lee, Der-Horng, 2024. "Optimizing consolidated shared charging and electric ride-sourcing services," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    4. Tang, Wei & Xie, Ningke & Mo, Dong & Cai, Zeen & Lee, Der-Horng & Chen, Xiqun (Michael), 2023. "Optimizing subsidy strategies of the ride-sourcing platform under government regulation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    5. Tian, Lijun & Jiang, Xiaolan & Wu, Wenxiang & Huang, Haijun, 2024. "Becoming a freelancer or contractor? Drivers’ contractual mode and schedule decisions in a dual sourcing market," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 185(C).
    6. Liu, Haoxiang & Zou, Yuncheng & Chen, Ya & Long, Jiancheng, 2021. "Optimal locations and electricity prices for dynamic wireless charging links of electric vehicles for sustainable transportation," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 152(C).
    7. Ke, Jintao & Cen, Xuekai & Yang, Hai & Chen, Xiqun & Ye, Jieping, 2019. "Modelling drivers’ working and recharging schedules in a ride-sourcing market with electric vehicles and gasoline vehicles," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 125(C), pages 160-180.
    8. Liu, Yang & Li, Sen, 2023. "An economic analysis of on-demand food delivery platforms: Impacts of regulations and integration with ride-sourcing platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 171(C).
    9. Mo, Dong & Yu, Jingru & Chen, Xiqun Michael, 2020. "Modeling and managing heterogeneous ride-sourcing platforms with government subsidies on electric vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 139(C), pages 447-472.
    10. Chen, Xiqun (Michael) & Zheng, Hongyu & Ke, Jintao & Yang, Hai, 2020. "Dynamic optimization strategies for on-demand ride services platform: Surge pricing, commission rate, and incentives," Transportation Research Part B: Methodological, Elsevier, vol. 138(C), pages 23-45.
    11. Mo, Dong & Chen, Xiqun (Michael) & Zhang, Junlin, 2022. "Modeling and Managing Mixed On-Demand Ride Services of Human-Driven Vehicles and Autonomous Vehicles," Transportation Research Part B: Methodological, Elsevier, vol. 157(C), pages 80-119.
    12. 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).
    13. Li, Baicheng & Szeto, W.Y. & Luo, Qin, 2021. "A peak-period taxi scheme design problem: Formulation and policy implications," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 146(C).
    14. 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.
    15. Yang, Jie & Zhao, Daozhi & Wang, Zeyu & Xu, Chunqiu, 2022. "Impact of regulation on on-demand ride-sharing service: Profit-based target vs demand-based target," Research in Transportation Economics, Elsevier, vol. 92(C).
    16. Ke, Jintao & Wang, Ce & Li, Xinwei & Tian, Qiong & Huang, Hai-Jun, 2024. "Equilibrium analysis for on-demand food delivery markets," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 184(C).
    17. Li, Baicheng & Szeto, W.Y., 2021. "Modeling and analyzing a taxi market with a monopsony taxi owner and multiple rentee-drivers," Transportation Research Part B: Methodological, Elsevier, vol. 143(C), pages 1-22.
    18. Ke, Jintao & Yang, Hai & Zheng, Zhengfei, 2020. "On ride-pooling and traffic congestion," Transportation Research Part B: Methodological, Elsevier, vol. 142(C), pages 213-231.
    19. Li, Xiaonan & Li, Xiangyong & Shi, Junxin, 2024. "Capacity sharing for ride-sourcing platforms under competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 182(C).
    20. Shi, Junxin & Li, Xiangyong & Aneja, Y.P. & Li, Xiaonan, 2023. "Ride-matching for the ride-hailing platform with heterogeneous drivers," Transport Policy, Elsevier, vol. 136(C), pages 169-192.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transe:v:169:y:2023:i:c:s1366554522003428. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/600244/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.